A look into the performance of BSE Sensex companies since 2008 reveals that IT, Pharma, FMCG and auto sectors have generated substantial returns irrespective of the economic growth of the country, while some have always been losers - Tata Motors, Sun Pharmaceuticals Industries and Tata Consultancy Services (TCS) shares are amongst the winners
The growth in gross domestic product (GDP) for the quarter ended June 2013 hit a four-year-low of 4.4 per cent. This was much lower than market expectations and also in sharp contrast to the growth rate of 9.3 per cent that the economy registered just two years ago in 2010-11.
On the back of a strong economic growth, net inflows from Foreign Institutional Investors (FII) was Rs 133,266 crore during the calendar 2010 and sentiment was on a high, the year saw BSE Sensex closing at an all-time high of 21,005 at the Muhurat trading on November 5, 2010.
Contrary to the situation in 2010-11, the economy is now witnessing a slowdown. Indian rupee is trading at much depreciated level of 65 to the US dollar, net FII inflow for the calendar at Rs 61,051 crore (as on September 6) and sentiments in the equity market are on a low. But even in the two contrasting environments there are sectors which have performed consistently on the stock market front.
In 2010, companies in the IT, pharma, FMCG, banking and auto sectors did well at the stock exchanges whereas those in the power, metal, capital goods and oil and gas sector trailed in performance. The situation is not different now, and companies in the same sectors continue to drive the market even as the economic fundamentals and environment are significantly different than they were in 2010 with the exception of banking that is reeling under currency pressure.
In the calendar 2010, among the Sensex companies, Tata Motors rose by 89 per cent while Sun Pharma and TCS were up by 61 and 55 per cent respectively. However, in the same period Sesa Goa and NTPC were down by 16 and 15 per cent respectively. Even Bharat Heavy Electricals Ltd (BHEL), Tata Power and Reliance Industries (RIL) generated negative returns.