4 times more return than the BSE Sensex; these are the top-performing sectors in 2023 so far.

In 2023, the performance of different sectors has varied widely. While some sectors have strongly outperformed and surged up to 4 times more than the Sensex, there are a few that have underperformed.

 SUMMARY

• In 2023 so far, the equity benchmark BSE Sensex has surged 8 per cent to 65,508 as of September 28, 2023 from 60,841 on December 30, 2022.
• There are as many as three sectoral indices that have given more than 25 per cent (YTD) return this year.
• The BSE Capital Goods index is the top-performing sectoral benchmark as it has gained 42 per cent to 47,363 on September 28, 2023, from 33,342.2 on December 30, 2022.

This year global stock markets have been very volatile. Despite this volatility, strong domestic macros helped stock markets recover smartly and equity investors gained good returns. The equity benchmark BSE Sensex has surged 8 per cent in 2023 so far, but the performance of different sectoral indices has varied widely—while some have strongly outperformed the Sensex and surged up to 42 per cent, a few have declined sharply and even delivered negative return till September 28, 2023. Here are the details:

Data available from BSE shows that there are as many as three sectoral indices that have given more than 25 per cent (YTD). The BSE Capital Goods index is the top-performing sectoral benchmark as it has gained 42 per cent to 47,363 on September 28, 2023, from 33,342 on December 30, 2022. It is followed by the BSE Realty index, which has surged 32 per cent to 4,565 on September 28 from 3,447 on December 30. At the third spot is the BSE Auto index, it has jumped 26 per cent to close at the 36,432 level from 28,923.

The fourth biggest gainer sector is BSE Healthcare as the index fetches a 21 per cent return to 27,879 from 23,034 at year-end 2022. And BSE Fast Moving Consumer Goods (FMCG) index is ranked fifth in this list. The FMCG sector benchmark has given a 16 per cent return to investors this year. It was trading at 18,584 on September 28, 2023 from 16,075 level.

The biggest underperformer sector this year is Oil and gas. In 2023, the BSE Oil & Gas index declined 8 per cent to 18,782 from 20,409. While BSE Bankex and BSE Power index have also underperformed the Sensex and given 2 per cent and 5 per cent returns respectively in 2023 so far.

Top performing large-cap stocks in 2023 include Tata Motors up (58 per cent), Larsen & Toubro (44 per cent), NTPC (43 per cent), Bajaj Auto (38 per cent), and ITC up (33 per cent). On the other hand, UPL, Reliance Industries, and HDFC Bank have declined 16 per cent, 8 per cent, and 6 per cent respectively.