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Sales Growth in 2QFY16: How Did The Sectors Perform?
Nov 16, 2015

The Indian stock markets have been slipping lower in recent weeks. A mix of domestic and global factors is responsible for this. BJP's debacle in the Bihar elections was seen as a dampener to market sentiment. On the global front, the likely hike in interest rates by the US Fed next month is another concern that is forcing investors to take a cautious approach. But another key factor that is indeed at the heart of the recent underperformance of stocks is the poor show in the July-September 2015 quarter results.

As per an article in The Economic Times, a sample of 1,822 listed companies witnessed a meagre 1.5% YoY aggregate growth in revenue during the quarter ended September 2015 (the sample excluded banks and oil firms).

Now, you may say that such a large sample may not be an appropriate representative of the fundamentally sound companies that may be of interest to investors. Here is another set of data that we came across in Business Standard. Today's chart shows the sector-wise revenue performance during the quarter ended September 2015. But the sample taken is slightly different. Performance of the top 25 performers from some major sectors has been taken into account, excluding banking and finance.

So, how has the performance been? Realty, power and IT sectors reported the highest topline growth at about 14% YoY. The steel sector has been the worst hit. Capital goods have also fared poorly. The FMCG sector, a good indicator of consumer demand, has slowed down to 2.2% YoY growth. It is clear that the Indian economy is not out of the woods yet. The macroeconomy is in a much better state than it was two years ago. But the economic revival still remains elusive.

Data Source: Business Standard, Capitaline
Note: Filtered for top 25 performers

This Chart Of The Day was published in The 5 Minute WrapUp - The Most Important and Most Ignored Step in Investing

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