Narendra Modi is going to be the Prime Minister again During the first tenure of the Modi government, major indices of the domestic share markets created a record of elevation.
The BSE Sensex has gained 40,000 points for the first time on the day the results of the Lok Sabha elections are announced. Similarly, the Nifty 50 index also surpassed 12,000 points for the first time. During the first tenure of the Modi government, the Sensex gave 63.48 percent returns.
The return received during May 16, 2014 to May 24, 2019 is not less. But during this period many sectors did not perform well. In fact, indices of BSE sector nine have performed poorly from the Sensex during Modi's first term.
Not only this, but two sectors- Telecom and Metal have plunged investors' money. Meanwhile, the BSE Telecom Index was up 20.06 per cent and the Metal Index was up 2.66 per cent. The BSE Power Index has given a return of just 0.5 percent during the five years of the Modi government.
In the same way, returns of sectors such as BSE Healthcare, Auto, Realty, Capital Goods, Tech are falling within the range of 29 per cent to 50 per cent. Both investors and analysts had great expectations from these sectors. But all these expectations could not be fulfilled on the ground floor.
Analysts have their own arguments for this weak performance of many sectors. However, analysts agree that the investors of these sectors were expected to grow in earnings. But in the last four to five years, there has been no special increase in these sectors.
Sharekhan's Senior Vice President Hemang Jani said, "For the past five years, people had hoped that the return of capital spending could boost the Capital Goods Sector strongly.
Founder of Equinemex Research and Advisory, G Chokkalingam believes that the performance of the sector is diminishing due to structural reasons. All these reasons were outside the control of the government. Just because of the weakness of the Capital Goods investment cycle, there is a lot of work to do.
There is also a fact that many issues are misinterpreted on the index. Up to 65 per cent of the Sensex does not necessarily mean that all companies have performed well. There is also an important role of select companies in the growth of this major index. The performance of many companies is still weaknesses.
Prolonged pricing in telecom sector has reached lower levels. It can not be worse than it now In this case, the attitude towards this sector becomes positive. However, due to trade war between the US and China, there is pressure on the metal sector. For further reason this will be under pressure.
Chokkalingam said, "In the past decade, the price of property has increased by 300 to 400 per cent, in such a situation it is difficult for the common man to buy a house, because of which mathematics of demand and supply have become very messy."
The base in the IT sector has increased significantly. On this large basis, it is difficult to achieve double digit growth. Apart from this, the new government will make every effort to improve the health of the rupee, which would put pressure on both IT and Pharma sectors. Chokkalingam is neutral towards pharma sectors.
So far the conjuction was the driver of the economy. But in the last six months it has also been very soft. The auto and the FMCG sector make it fit. Hemang Jani thinks that if the interest rates were cut and the companies brought the electric vehicles soon, the consumer centimeter could change.
The BSE Sensex has gained 40,000 points for the first time on the day the results of the Lok Sabha elections are announced. Similarly, the Nifty 50 index also surpassed 12,000 points for the first time. During the first tenure of the Modi government, the Sensex gave 63.48 percent returns.
The return received during May 16, 2014 to May 24, 2019 is not less. But during this period many sectors did not perform well. In fact, indices of BSE sector nine have performed poorly from the Sensex during Modi's first term.
Not only this, but two sectors- Telecom and Metal have plunged investors' money. Meanwhile, the BSE Telecom Index was up 20.06 per cent and the Metal Index was up 2.66 per cent. The BSE Power Index has given a return of just 0.5 percent during the five years of the Modi government.
In the same way, returns of sectors such as BSE Healthcare, Auto, Realty, Capital Goods, Tech are falling within the range of 29 per cent to 50 per cent. Both investors and analysts had great expectations from these sectors. But all these expectations could not be fulfilled on the ground floor.
Analysts have their own arguments for this weak performance of many sectors. However, analysts agree that the investors of these sectors were expected to grow in earnings. But in the last four to five years, there has been no special increase in these sectors.
Sharekhan's Senior Vice President Hemang Jani said, "For the past five years, people had hoped that the return of capital spending could boost the Capital Goods Sector strongly.
Founder of Equinemex Research and Advisory, G Chokkalingam believes that the performance of the sector is diminishing due to structural reasons. All these reasons were outside the control of the government. Just because of the weakness of the Capital Goods investment cycle, there is a lot of work to do.
There is also a fact that many issues are misinterpreted on the index. Up to 65 per cent of the Sensex does not necessarily mean that all companies have performed well. There is also an important role of select companies in the growth of this major index. The performance of many companies is still weaknesses.
Prolonged pricing in telecom sector has reached lower levels. It can not be worse than it now In this case, the attitude towards this sector becomes positive. However, due to trade war between the US and China, there is pressure on the metal sector. For further reason this will be under pressure.
Chokkalingam said, "In the past decade, the price of property has increased by 300 to 400 per cent, in such a situation it is difficult for the common man to buy a house, because of which mathematics of demand and supply have become very messy."
The base in the IT sector has increased significantly. On this large basis, it is difficult to achieve double digit growth. Apart from this, the new government will make every effort to improve the health of the rupee, which would put pressure on both IT and Pharma sectors. Chokkalingam is neutral towards pharma sectors.
So far the conjuction was the driver of the economy. But in the last six months it has also been very soft. The auto and the FMCG sector make it fit. Hemang Jani thinks that if the interest rates were cut and the companies brought the electric vehicles soon, the consumer centimeter could change.
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