Saturday, February 12, 2022

2011 to 2021 - Stock Market Segments and Sectors Yearly Performance

The Indian stock market traces its history back to the late 18th century when the trading floor was under the shade of a sprawling banyan tree opposite the Town Hall in Mumbai started by Premchand Roychand in 1875.

In 1957, the BSE was the first stock exchange to be recognized by the Government of India under the Securities Contracts Regulation ActConstruction of the present building, the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area, began in the late 1970s and was completed and occupied by the BSE in 1980.

National Stock Exchange (NSE) incorporated in 1992 started by R.H. Patil.

When did Indian Stock Market Open?

NSE or National Stock Exchange is open on the weekdays from Monday to Friday from 9:15 to 3:30 AM in the Morning and is closed on Saturday and Sunday, except any special trading sessions are announced.

Overall, there are around 8000 Stocks divided among 3 major Segments Cap - Large, Mid and Small and also across 30 Sectors.

Market segments perform differently at different times:


Large caps provide cushion during tough market conditions while mid and small help drive alpha.

Large Cap Stocks are always safe to invest because of less risky and stable returns but slow growth.

On an Average of 11 Years (2011 - 2021):

a) Large cap - 12.92%

b) Mid cap - 15.94%

c) Small cap - 17.7%

Sectors/themes perform differently at different times:


CAGR of above Sectors since last 11 Years (2011 to 2021) are:

1) Auto - 10.71%
2) Consumer Durables - 24.68%
3) Energy - 10.93%
4) Finance - 13.5%
5) FMCG - 13.47%
6) Health care - 15.52%
7) Industrials - 12.13%
8) IT - 28.36%
9) Metal - 6.14%
10) Oil & Gas - 6.3%
11) PSU - 1.47%
12) Telecom - 6.16%

You can see that IT sector has given Highest growth while Public Sector given Lowest Annualized Average  Returns.

So, finally stay invested for longer duration to get better returns. do SIP time to time.

Proxy Index taken: Auto: S&P BSE 100 Auto index, Consumer Durables: S&P BSE Consumer Durables Index, Energy: S&P BSE Energy Index, Finance: S&P BSE Finance Index, Healthcare: S&P BSE Health care Index, Industrials: S&P BSE Industrials Index, IT: S&P BSE IT Index, Metal: S&P BSE Metal Index, Oil & Gas: S&P BSE Oil & Gas Index, PSU: S&P BSE PSU Index, Telecom: S&P BSE Telecom Index.

Data as on 31st December, 2021. Past performance may or may not be sustained in future. 

Stocks of which segments / sectors did you invest most?

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