The Case for an 'Out of Favour' Sector, a Prospective Stock Recommendation, and More... - Views on News from Equitymaster

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The Equitymaster Research Digest

The Case for an 'Out of Favour' Sector, a Prospective Stock Recommendation, and More...
Jan 19, 2016

I am a sucker for screening stocks. I enjoy the process of segregating, and analysing heaps of data quite a bit. Especially trying to find companies from a particular sector that standout from the rest.

However, sifting through big picture data is new for me, but it's an area I am looking to work on. The ball has started rolling in this direction, and today's edition of the Research Digest is a step towards the same.

The idea for the attempting such an analysis came when I was screening all stocks on the Bombay Stock Exchange. The list threw up 5,000-plus names.

Market capitalisation is one of the usual filters I use in the screening process. Turns out that the data software we use at Equitymaster also includes all of the indices (including the sectoral ones) when we run screens on all listed companies. While working on my last screen, I noticed something odd. The BSE Realty Index was ranked quite low on a table when sorted by market capitalisation. Way below the market capitalisation of most large bluechips as well.

So I thought it would be good idea to compare the market capitalisation of the realty index with that of the other sectoral indices. The following chart is what I ended up with...

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