Equity investors now turn their attention to export-driven sectors

While global growth and trade have been accelerating for two years, India has witnessed a deceleration in GDP and export growth

After betting on the domestic consumption story for over three years, equity investors could now turn their attention to export-driven sectors. In the last month, the S&P BSE Sensex is down six per cent, while the Nifty IT (information technology) index is down only 1.5 per cent during this period. Other export-focused companies in pharmaceutical, automobile and agrochemicals sectors have also seen share prices rise. 

Investors are now betting on recovery in global economic growth to lift these companies’ fortunes. According to the International Monetary Fund’s latest World Economic Outlook, global growth at constant prices is expected to accelerate to