WHO would have guessed this day 10 years back — when the dotcom mania was in full swing — that a builder of apartments from New Delhi and an iron ore miner in Goa would be the best performers among the BSE 500 index in a decade. There may be such surprises in the next decade too.
The top-10 gainers of the BSE 500 index this decade come from a wide range of sectors such as oil, real estate, mining, textile, steel, coal, finance and construction, even as the then fancied technology, pharma and fast-moving consumer goods (FMCG) fell by way side when the dotcom bubble burst.
The index represents 20 main industries and accounts for almost 93% of the total market capitalisation. "It shows that our economy over the last decade has become more inclusive and growth has indeed percolated to a larger bouquet of industries," says ICICI Securities executive director Anup Bagchi.
"Proactive government policies have in particular opened up sectors easing funding regulations for capital expenditure." Unitech, which was trading at about 34 paise, adjusted for splits and bonuses, in 2000, emerged at the top.
Its shares ended at Rs 82 Thursday, which is nearly 240 times the price it was in the beginning of the decade, according to data from Centre for Monitoring Indian Economy (CMIE).
A Rs 100 investment in it then translates into Rs 24,000. But that is statistic. Of course, the shares are down from their peak of Rs 538.25 in January 2008.
Then there are five companies, which currently trade at over 100 times their stock price in early 2000.
Oil drilling firm Aban Offshore (166 times), construction company Era Infra Engineering (152 times), India's largest iron ore exporter Sesa Goa (134 times), coal producer Gujarat NRE Coke (106 times) and ferro alloys manufacturer Nava Bharat Ventures (103 times).
The performance shows that what may be a fad at one time, may fade and that a focused sectoral investment could adversely affect the returns.
