With the increase in per capita income, higher discretionary spending, growing aspirations of the consuming class and growth of retail credit in the last one decade, several new sectors have emerged to challenge the Sensex earnings of some traditional sectors. The stark change was seen in the FMCG sector where the earnings have gone down to 20.5% in 2010 from 25.9% in 2000. The same is the case with pharma where the composition of Sensex earnings dropped to 1% in 2010 from 5.9% in 2000. Stocks of these two sectors have always been seen as defensive but the earnings composition show that the pattern is changing now. Even earnings of the oil & gas sector have fallen to 20.5% in 2010 from 22.4% in 2000 despite crude prices increasing three-folds during the period.
Data compiled by Motilal Oswal Securities Limited show some new sectors like real estate and infrastructure emerging. The most notable gains in the earnings composition were seen in the banking and financial sector where earnings have gone up from 6% in 2000 to 16.7% in 2010.
