A comparison of BSE500, S&P500 (US), Shanghai Composite (China), and Topix500 (Japan) shows that over a 20-year period, India has produced 20 times as many 20%+ return generators. Adani Enterprises, Bajaj Finance and Titan top the pecking order in the ‘20-20’ champs list. Stocks from the Industrials and Materials have done the best, but even one of the lowest return sectors, Real Estate, over the last two decades hasn’t done badly. Here are four charts that tell the story.

Raining multibaggers

India’s BSE500 index, over the last 20 years, has been home to many stocks (116) fetching at least 20 per cent CAGR. That’s 23 per cent of the basket becoming ‘20-20’ champs, compared to 5-10 per cent of global indices. At an absolute level, the US, China and Japan indices created 1-6 stocks that generated 20+ per cent over last two decades.

Best stocks

Over the last 20 years, Adani Group’s jewel Adani Enteprises, NBFC leader Bajaj Finance, jewellery brand Titan lead the biggest return generators in the BSE500 pack. They are followed by SRF, Havells, Kajaria, Aarti etc.

Sectorally speaking

In India, Industrials, Financials, Consumer Staples and Materials stocks have had the highest ratio of 20-20 winners in their respective sectors. They are followed by Consumer Discretionary, Healthcare and Communication Services.

A look around at the world

Industrials, Financials and Materials stocks fared well in India, while in the US, the best performer were IT and Healthcare. In China, the Consumer Staples and Healthcare sectors lead the charts while Communication Services and Real Estate are the best ones in Japan.

Also read
Several factors such as strong bank balance sheets and regulation, a decade of corporate deleveraging and a supportive policy environment will ensure that the outperformance will continue, said IIFL Research.

BSE 500 stocks’ returns dwarfs peers in US, China, Japan

Related Topics
comment COMMENT NOW