Leaving behind the benchmark stock indices in other countries, the BSE Sensex has surged 32.5 per cent so far this year.

The sector indices have gained anywhere between 14 per cent and 55 per cent this year. But the picture across several other markets – the US, the UK and Japan – is very different. The broader market and many sector indices have delivered meagre returns or losses during the year.

High ride

Take, for instance, the Auto Index. A good show by index heavyweights such as Tata Motors, Maruti Suzuki and Hero MotoCorp in recent quarters has seen the BSE Auto Index gain 52 per cent this year. In contrast, Japanese auto and other transport stocks have made only modest gains, hurt by weak domestic demand. A consumption tax hike in April and a strengthening yen added to the woes of automakers.

Driven by hopes of a revival in economic growth, banks have been on an uptrend, helping the BSE Bankex gain 55 per cent. The performance of banking stocks in the US and the UK, has been muted. With the global economy not out of the woods, the performance of the banking sector has been subdued.

Out of gas

Even as falling crude oil prices have been eating into profits of global energy producers, the situation back home is altogether different.

While the FTSE 350 Index - Oil & Gas Producers and the Dow Jones US Oil & Gas Index are down 8 per cent and 4 per cent, respectively, the BSE Oil & Gas Index has gained a handsome 23 per cent. With the recent introduction of diesel de-control, upstream petroleum companies such as ONGC and Oil India — which used to bear a part of the diesel subsidy — can now see their burden come down. Oil marketing companies too will benefit from diesel sales at market-determined prices.

In contrast to metal and mining stocks in other countries, the BSE Metal Index has managed to deliver a solid return of 14 per cent so far this calendar year.

Prices of many globally-traded metals have been under pressure given the demand slowdown in China (the world’s largest consumer of several metals), even as miners ramp up production.

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