Sunday, December 19

Sectors that have consistently outperformed the Sensex

With just 10 working days for the year 2010 to complete, here is a small analysis of the sectors that have consistently outperformed the Sensex over the last 6 years.

Average Yearly Return of the Sensex over from 2005 - 2010 = 29.0% [Max return in Yr 2009 - 77.3%]

Sectors that have outperformed the Sensex in terms of Average Yearly Returns:
Realty ........................ 98.6%  [Max return in Yr 2006 - 469.0%] (Realty Index introduced in 2006)
Consumer Goods ..... 51.5%  [Max return in Yr 2007 - 114.8%]
Metals ........................ 50.9%  [Max return in Yr 2009 - 220.4%]

Consumer Durables .49.1%  [Max return in Yr 2005 - 110.6%]
Auto ........................... 42.7%  [Max return in Yr 2009 - 200.5%]
Power ........................ 35.8%  [Max return in Yr 2007 - 125.0%]

Oil & Gas ................... 35.0%  [Max return in Yr 2007 - 112.8%]
Banks ......................... 32.5%  [Max return in Yr 2009 - 81.0%]

On a year over year basis, Consumer Goods (AAR 51.1%) and Consumer Durables (AAR 49.1%) have outperformed the Sensex in 4 out of last 6 years. However, both underperformed the Sensex in 2008 when the markets fell on account of global meltdown demonstrating vulnerability to adverse conditions.

Information Technology (IT) has consistently outperformed the Sensex in the last three consecutive years with an average return of 34.5% (including 2008 which saw the global meltdown when both Sensex and IT fell ~48%.

Now this is especially for long term investors who look for long term growth:
The following are the top 5 sectors that have demonstrated the highest growth in Investor value over the last 6 years (Sensex growth in 6 Years... 197%):
Consumer Goods .......... 408.5%
Consumer Durables ...... 289.1%
Banks ............................. 245.2%
Auto ................................ 241.2%
FMCG ............................ 233.0%

Top 2 Sectors to look for in 2011 - FMCG and Consumer Durables



*AAR = Average Annual Return

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