Sectoral indices raced to the top on Boom Friday

As many as nine out of 15 indices of the Bombay Stock Exchange (BSE) hit their highs on the Boom Friday (July 29). The benchmark BSE Sensex jumped to a high of 7708.59 in intra-day trades, closing at a new peak of 7,635.42.

An analysis of BSE's various indices showed that besides the Sensex, BSE 100 (4112.89), BSE 200 (987.04) and BSE 500 (3151.47), several sectoral indices such as TECk, Auto, Bankex, Consumer Goods, and Oil and Gas touched their new closing highs on Friday last. 

Reaching for the sky
Indices	Jul 29, 05 Close	30-Jul-04 Close	Change	% Change	52-week High
Sensex	7635.42	5170.32	2465.1	47.68	7708.59
BSE-100	4072.15	2755.22	1316.93	47.8	4112.89
BSE-200	978.28	674.22	304.06	45.1	987.04
BSE-500	3124.78	2081.26	1043.52	50.14	3151.47
TECk	1938.47	1324.79	613.68	46.32	1961.24
PSU	4572.56	3310.38	1262.18	38.13	4672.15
Auto	3174.14	2228.2	945.94	42.45	3216.29
Bankex	4764.91	2539.53	2225.38	87.63	4867.43
C Goods	4060.83	2188.8	1872.03	85.53	4092.13
C Durables	2298.59	985.03	1313.56	133.35	2495.03
FMCG	1317.96	846.62	471.34	55.67	1330.5
Health Care	2896.87	2229.49	667.38	29.93	3094.79
IT	2833.63	1989.68	843.95	42.42	2934.03
Metal	5789.97	4310.47	1479.5	34.32	7085.91
Oil & Gas	3523.58	2711.84	811.74	29.93	3563

Consumer Durables and FMCG indices saw their peaks earlier during the month too. The remaining four sectoral indices "" PSU, Health Care, IT and Metal - touched their peaks during different months of the current year. Mid-cap and small-cap indices, which are yet to complete the first year of their launch, also touched their peaks on July 25.

Despite caution, the dealers are of the view that if the Sensex crosses its high of 7708.59, then it will continue its upward spiral.

Hiten Sampat of Parag Parikh Securities said, "A correction is expected in the next couple of sessions in the form of profit-booking. However, if the index could cross its intra-day peak of 7708.59, then the spiral may continue. Otherwise, the rise and rise of the market over the last few days has been defying reason."

In the sense, except for the FII inflows, there is no other specific driver for the market as such.

Among the non-sectoral indices, BSE-500 posted gains of over 50 per cent over the last 12 months, while all the other three indices gained in a close range of 45 per cent and 48 per cent.

Among all the 11 sectoral indices, Consumer Durables index had showed a robust growth of 133.35 per cent over the last one year, followed by Bankex (87.63 per cent), Consumer Goods (85.53 per cent), FMCG (55.67 per cent), TECk (46.32 per cent) and Auto (42.45 per cent).

However, analysts are betting on different sectors though some of the top performers so far may keep doing well for some more time.

Sharmila Joshi of Asit C Mehta Investment Intermediates says that auto and FMCG sectors are likely to do better from now.

"Good monsoon is expected to increase agriculture productivity and help boost demand for two-wheelers and FMCG sectors. Commodities markets are abuzz with good business this time," she said.

Power sector is also expected to do well, considering that there are a lot of projects envisaged for generation and down side infrastructure in transmission.

"Banks, which have lost some lustre on Monday may once again bounce back in the next few sessions," she added.

However, Sampat is skeptical about the promise handed out by the FMCG sector in the near future.

"Monsoon has been good at some places, but it had wreaked havoc at some other places. One cannot say that the downpour will lead only to prosperity. Thus, it is a some-win- some-lose situation now," he said.

"But, FMCG companies still continues to keep its defensive stock character in the market," he added.

"We are betting on pharma and infrastructure sector instead. Pharma, which has not been doing well is likely to see turnaround in their fortunes soon. The same is the case with infrastructure companies, which are likely to thrive on the new orders they are bagging of late," Sampat said.