As many as 14 sectoral indices out of a total of 19 have outperformed the benchmark Sensex in the last one year, reports fe Bureau in Mumbai. While these sectoral indices registered a growth in the range of 3%-23%, the Sensex went up by 1.52% during the period, data compiled from Bloomberg showed. Among the sectoral indices, the best performing was the BSE Basic Materials which climbed around 23%. The best performer in the index was Sudarshan Chemical Industries whose shares soared 190%, while shares of JSW Steel rallied 113% during the period.
Among the worst performers is the sectoral index for telecom shares as it declined close to 16%. Shares of Idea Cellular declined by 38% followed by Bharti Airtel — India’s largest telecom provider, whose shares were down by 11%. According to a research report published by CLSA, Bharti Airtel is best-placed to gain in the near term due to their lead on spectrum as well as higher fibre and sites on network. “Over FY16-18, we expect data revenues to double and Bharti Airtel and Jio are best-placed to gain given their lead in spectrum as well as higher fibre and sites on network,” the brokerage said in the report.
The BSE Capital Goods index lost around 11% during the period. Shares of BHEL declined by 45% followed by Suzlon whose shares were down by around 20% during the period.
However, according to a report published by HSBC, Suzlon is expected to benefit from the government’s strong focus on renewables. “This coupled with its business restructuring and subsequent market positioning should allow the company to regain market leadership,” the brokerage said in the report.