The S&P BSE Consumer Durables index has outperformed all the other sectoral gauges and is on track to end financial year 2017-18 with the highest returns.
The index has consistently managed to beat the broader benchmark returns in each of the last five years. It outperformed all the other sectoral indices in three of the last 10 years, most recently in the financial year 2015-16.
India’s macroeconomic data have been pointing to strong growth opportunities for consumer durable companies. Greater spending power of Indian households coupled with easy availability of consumer finance and the government’s ‘Power for All by 2019’ scheme will drive penetration of consumer durables, Axis Capital said in a recent report.
Shares of Titan, VIP Industries and Bajaj Electricals are the top three gainers on the 10-stock consumer durables index with gains in excess of 50 percent in FY18.