Tech biggest wealth creator for equity investors in last five years, says Motilal Oswal study

Motilal Oswal wealth creation study says sector added Rs 7.1 lakh crore to investor wealth

The technology sector which  faced severe distress at the time of the 2008 financial crisis has emerged as the biggest wealth creator from 2009 onward, according to the 19th Annual Wealth Creation Study by Motilal Oswal Securities. The best sector for wealth creation over the 2009-14 period has been the technology sector as it has created Rs.7.1 lakh crore in investor wealth.

The next biggest sector to create wealth has been auto sector, which grew at a compounded annual growth rate of 41%, with profits after tax growing at 60%. The profits were led by a "major profit turnaround in Tata Motors' overseas subsidiary JLR", according to the study.

The study says that the the overall outlook for the market remains robust and there is significant room for upside. "Subject to global factors, market cap/GDP of 77% leaves room for about 50% upside over the next 2 years as market cap heads towards parity with GDP."

The study is led by value investor and the joint MD and promoter of Motilal Oswal – Mr Raamdeo Agrawal. An equity research stalwart, Mr. Agrawal analyses the most consistent, the fastest and the biggest value creators in the Indian equity universe every year. Though the study is done every year, the report is a reference point of sorts.