An analysis of the five different sectoral indices of the Bombay Stock Exchange (BSE) reveal that although the Sensex has gone down by 10.5 per cent (489 points) from 4658 points to 4169 points April 1 to December 18, the BSE Healthcare (BSEHC) and BSE Capital Good (BSECG) indices managed to rise by 9.9 per cent (128 points) and 10.4 per cent (69 points) respectively during the same period. The BSE Fast Moving Consumer Goods (BSEFMCG) index gained marginally by 0.9 per cent.

But the BSE IT index was down by 21.5 per cent (881 points)) from 4044 points to 3175 points during this period. The BSE Consumer Durables (BSECD) went down by 3.1 per cent.

Among the IT stocks to take the plunge on the infotech index included - Satyam Computers and Infosys Technologies - down by 45 and 16 per cent respectively during the same period.

The fall in the Sensex was due to the sell-off in the information technology scrips, has been to some extent offset by the rise in the prices of pharma and capital goods companies. The IT bubble burst has gradually resulted in a shift in investors preference towards the battered low value old economy scrips.

The rise in the pharma scrips is attributed to a good second quarter result of most of the domestic pharmaceutical companies and also good exports performance put up by them. The domestic pharmaceutical companies have put up good performance in research and development (R&D) front and are looking forward to tap the US generic market.

In the pharma sector Ranbaxy Labs went up by 13.5 per cent from Rs 641.25 to Rs 728.05 during the same period. In the public sector, the price of Bharat Heavy Electrical Ltd (BHEL), which is part of the capital goods index, was up by 34 per cent from Rs 117.9 to Rs 157.65.

Analysts have expressed divergent views on the impact of US presidential election. Some analysts feel that it would act positively as it might result into removal of certain export restrictions presently imposed on exports of pharmaceuticals products from the country. Others felt that the newly elected president, George W Bush, who has a soft corner for multinational pharmaceutical companies operating in India may announce sops for them and this could be detrimental for domestic pharma companies.

With regard to old economy scrips, investors interests were focussed mainly on the power utility providers. The recent restructuring drive by most State Electricity Boards (SEBs) have generated some activities in these companies which is reflected in their scrips, felt an analyst. The valuation of old economy scrips in general have become more attractive with investors realising their true worth, felt the analyst.