Upbeat mkt: 7 sectoral indices outperform Sensex in Sep qtr

Reflecting improved market sentiment as many as seven sectoral indices on the Bombay Stock Exchange (BSE), including auto and realty, have outperformed the benchmark Sensex in the second quarter of current fiscal.

An analysis of the 13 sectoral indices on the BSE for the three months ended September, shows that all of them made significant gains and seven of them outperformed the key 30-share Sensex.

The performance was mainly on account of increased fund inflows from institutional investors, favourable valuations and upbeat market mood.

According to the data available with the exchange, the seven indices are Auto, Realty, Healthcare, Bankex, Consumer Durables, Teck and Metal. Among them, Auto gained the maximum of 44.38 per cent during the three months ended September.

"Auto stocks are an indicator of market movement. If the markets fall they fall with it and when the markets rebound they generally outperform Sensex," brokerage firm SMC Global's Vice President Rajesh Jain said.

During the same quarter last year, the Auto index had climbed just 7.78 per cent.

During the same period, Sensex has given a healthy return of 16.94 per cent to close at 17,126 points on September 30, while it settled at 14,645.47 points on July 31.

Auto index is followed by Realty which gave the second biggest return during the quarter with 34.87 per cent, while in the same period last year it had given a negative return of 16.77 per cent.

Jain further added, in the bearish market real estate stocks are the most beaten while in the bullish phase they shine and nowadays they have become a momentum play where one can earn quick money.

Other indices which outperformed the Sensex with a significant margin during the second quarter current quarter fiscal were Healthcare (with 23.69 per cent return), Bankex (18.44 per cent), Teck (23.32 per cent) and Metal (30.19 per cent).      

While, sectoral indices which underperformed the broader market were Oil & Gas index (with returns of 10.32 per cent), FMCG (12.85 per cent), PSU (11.36 per cent), Power (7.20 per cent) and CG (6.64 per cent).

The overseas fund inflows into the Indian stock markets, have crossed the Rs 60,000-crore (about $12 billion) mark so far this year.

In September alone, foreign investors infused a hefty Rs 18,344 crore ($3.8 billion) in the local share markets.