BSE capital goods index has gained the most with a 62.51% return
MUMBAI: The markets signed off Samvat 2070 with a 26 per cent gain mainly led by domestic demand — driven sectors such as capital goods, consumer durables, auto and health care sectors on expectation that the Prime Minister Narendra Modi government would lift the domestic economy from the slow- down witnessed in the last two years While all the Bombay Stock Exchange sectoral indices have rallied higher over the last one year, the Bombay Stock Exchange capital goods index has gained the most with a 62.51 per cent return followed by consumer durables and auto index that have gained 53.58 per cent and 47.34 per cent respectively.
According to market participants, the Samvat 2071 would be the year of ‘India Building’ story as construction, cement, metals and banking sector stocks are expected to perform well on the back of government’s strong thrust on infrastructure and industrial development. “It would be an India building story which will be played out in the next one year with companies in the infrastructure, capital goods, cement and metals expected to perform very well,” said Ambareesh Baliga, market expert.
However, he added that the markets are not expected to deliver the same kind of return that they have given during the past one-year. “It will not be a one- way street. There will be an intermittent correction due to global headwinds and selling by foreign portfolio investors (FPI),” he added. “Cements and infra would do well in the coming year considering the fact that the Modi government’s focus has been on building new cities.
Apart from these, select midcap stocks are also going to perform exceptionally well where there is a huge valuation gap,” said Nirakar Pradhan, chief investment officer, Future Generali India Life Insurance. According to him, Nifty companies are expected to post a 17-18 per cent growth in their earnings per share (EPS) over the next one year.
( Source : dc correspondent )
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