The S&P BSE Sensex and NSE Nifty 50 indices have more than doubled in 2010s, data compiled by BSE and National Stock Exchange showed. The Sensex has surged 138 per cent and Nifty 50 index has climbed 135 per cent since the start of 2010. The stock market performance as measured by the percentage change in Nifty 500 index, the gauge of shares of top 500 companies by market value listed on the NSE, has also more than doubled since the start of 2010. the index has given return of 128 per cent. Analysts say that although the benchmarks have more than doubled, the journey has not been one-way but rather a topsy-turvy ride to the historic highs at which the Sensex and Nifty are currently trading.
The surge in stock markets indicate that money invested at the start of 2010 in an index fund of Sensex, Nifty or Nifty 500 would have yielded a minimum return of 100 per cent.
"There is more to come; whatever has happened in last 10 years is quite positive," Gaurang Shah, head investment strategist at Geojit Financial Services told NDTV over phone. He added that slowly and gradually we should expect decent returns from stock markets over the long term.
"There will be corrections and investors should buy quality stocks, stick to principles of investing and be a disciplined and learned investor," Mr Shah said.
On the sectoral front, private sector banking shares have been the best performers in the stock markets. Gauge of private sector lenders - Nifty Private Bank index has surged more than 400 per cent from its closing value on December 31, 2009.
"The private sector banks have performed on the back of strong earnings. Their earnings have done well and that is why the stock prices have gone up," Mr Shah said.
FMCG and Financial Service indices have also surged 321 and 300 per cent respectively.
Nifty Bank, Nifty Information Technology, Nifty Auto and Nifty Pharma indices have also notched up gains between 100-250 per cent.
On the flipside, Nifty Realty index has slumped 40 per cent; analysts say that slowing demand and regulatory hurdles faced by the real estate sector have led to slump in real estate shares.
"In real estate sector policies such as Real Estate Regulation Act (RERA) and GST on real estate and demonetization will bring discipline in the real estate sector," Mr Shah said.
State-run lenders have also yielded negative returns owing to rising non-performing assets in the sector.
"PSU banks have done badly. The last 10 years have been horrible for these banks. But with the establishment of National Company Law Tribunal (NCLT) and enactment of Insolvency and Bankruptcy Code (IBC), the public sector banks are also likely to perform better," added Mr Shah.
Going ahead he believes banking, non-banking finance companies, auto and FMCG sectors to do well.
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