A Goldman Sachs report has said that the Bombay Stock Exchange (BSE) group of stocks has delivered a 16 percent rupee return on a 5-year rolling period over the past 20 years, which amounted to about 269 stocks that were multibaggers.
Speaking on the report, Sunil Koul, the Asia Pacific Strategist for Goldman Sachs, underlined that upwards of half the Nifty 500 has generated more than 10 times the returns in the period. He said in the last two decades, India’s economy has increased seven times and developed a high investor appetite in terms of putting money into the country for the long haul. The top executive added that the country offers a long-term beta and oversized alpha opportunities within the emerging market.
Opportunities are still live within the domestic cyclical sectors of banking and manufacturing despite the underperformance of the technology sector. Sectors that are already established and have some scale do not require large capex investments and give good returns within two to three years, while sectors such as semiconductors or EVs require a large capex but will deliver impressive results over a longer period of time, Koul said in an interview.