Big-ticket domestic investors and foreign institutional investors (FIIs) are slowly beginning to look at sectoral indices and not just the benchmark Bombay Stock Exchange (BSE) Sensex for allocating investments.
Typically, these investors make allocations based on the performance of country indices. But now, they are looking at sectoral performances.
On a macro level, the Sensex has gained 11 per cent in the current calendar year to date, which is a weak shadow of the blistering 43 per cent gains posted by Thailand and the 30 per cent in Pakistan.
Yet, the $2 billion-plus investments by FIIs in the current year is proof of their belief that Indian markets are firmly in a bull phase.
Sectoral indices such as the cement, PSU, metals, commodity, two-wheeler and banking indices have all outperformed the Sensex.
