Selective, not broadbased

Selectivity is the theme among sectors too. Of the 11 sectoral indices maintained by the BSE, only three have gained, and quite impressively at that — Information Technology (up 17.4 per cent), Teck (17.3 per cent) and Bankex (12.2 per cent). The other eight have lost ground, with the worst being Metal (down 19.1 per cent) and Consumer Durables (13 per cent). Metals is a reversal of fortunes story — the BSE Metal index gained 72 per cent in calendar 2006 till May 10, but since then has retracted almost 20 per cent.

Even among the 30 Sensex stocks, only 11 have bettered the index during this five-and-a-half month swing. IT, telecom and banking dominate the set of Sensex leaders, with the best being Infosys (up 30.5 per cent) and Bharti (30.3 per cent); Tata Steel, bearing the brunt of the metals meltdown, brings the rear with a loss of 25.4 per cent. Even for the calendar year, only 13 of the 29 Sensex stocks (Reliance Communication came into the index later) have beaten the Sensex. Clearly, this rally has been selective.