Performance of Indian Capital Markets in 2017

Capital markets in India had a bull run in 2017 and gave exponential returns across size, segments, and sectors. In this blog, we will analyze how capital markets in India have performed in 2017.

Exhibit 1 and 2 showcase returns for India’s four leading size indices in 2017. 

Exhibit 1: One-Year Absolute Returns of Size Indices
INDEX INDEX VALUE ON DEC. 31, 2016 INDEX VALUE ON DEC. 31, 2017 ONE-YEAR ABSOLUTE RETURN (%)
S&P BSE SENSEX 37,472 48,550 29.56
S&P BSE Large Cap 3,707 4,877 31.55
S&P BSE Mid Cap 13,938 20,893 49.90
S&P BSE Small Cap 13,936 22,408 60.80

Source: S&P Dow Jones Indices LLC. Data from Dec. 31, 2016, to Dec. 31, 2017. Past performance is no guarantee of future results. Table is provided for illustrative purposes.

Exhibit 2: Index Total Returns

Source: S&P Dow Jones Indices LLC. Data from Dec. 31, 2016, to Dec. 31, 2017. Index performance based on total return in INR. Past performance is no guarantee of future results. Chart is provided for illustrative purposes.

From Exhibits 1 and 2, we can see that all four indices performed well, and returns have been promising for large-, mid-, and small-cap segments. The returns of the small- and mid-cap segments have been better than the large-cap segment. The S&P BSE SmallCap and S&P BSE MidCap posted one-year absolute returns of 60.80% and 49.90%, respectively, while the S&P BSE LargeCap and S&P BSE SENSEX returned 31.55% and 29.56%, respectively.

Exhibits 3 and 4 showcase returns for the 11 leading sector indices for India in 2017. 

Exhibit 3: One-Year Absolute Returns in Sector Indices
INDEX INDEX VALUE ON DEC. 31, 2016 INDEX VALUE ON DEC. 31, 2017 ONE-YEAR ABSOLUTE RETURN (%)
S&P BSE Realty 1,357 2,813 107.24
S&P BSE Basic Materials 2,722 4,298 57.90
S&P BSE Consumer Discretionary 3,286 5,116 55.66
S&P BSE Telecom 1,175 1,775 51.10
S&P BSE Finance 4,781 6,892 44.15
S&P BSE Energy 3,671 5,272 43.62
S&P BSE Industrials 3,174 4,419 39.24
S&P BSE Fast Moving Consumer Goods 9,967 13,283 33.26
S&P BSE Utilities 2,111 2,796 32.48
S&P BSE Information Technology 12,233 13,859 13.29
S&P BSE Healthcare 16,131 16,309 1.10

Source: S&P Dow Jones Indices LLC. Data from Dec. 31, 2016, to Dec. 31, 2017. Past performance is no guarantee of future results. Table is provided for illustrative purposes.

Exhibit 4: Index Total Returns 

Source: S&P Dow Jones Indices LLC. Data from Dec. 31, 2016, to Dec. 31, 2017. Index performance based on total return in INR.  Past performance is no guarantee of future results. Chart is provided for illustrative purposes.

From Exhibits 3 and 4, we can see that most of the sector indices have posted promising returns. The S&P BSE Realty had the best return in 2017, with 107.24%, followed by the S&P BSE Basic Materials, S&P BSE Consumer Discretionary, and S&P BSE Telecom, which had one-year absolute returns of 57.90%, 55.66%, and 51.10%, respectively. The S&P BSE Information Technology and S&P BSE Healthcare were the worst-performing indices in 2017, with absolute returns of 13.29% and 1.10%, respectively.

To summarize, we can say that the bulls had their way in 2017, and indices across various size, segments, and sectors have given exponential returns.

The posts on this blog are opinions, not advice. Please read our disclaimers.

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