BSE TECk improved in Year 2023, continued Momentum in Year 2024: Motilal Oswal AMC Study
FinTech BizNews Service
Mumbai, 24 Sept 2024: A study by Motilal Oswal AMC, BSE TECk index has shown resurgence in recent times giving 25.3% return during the first 8 months of CY (calendar year) 2024. In the last one year, the BSE TECk has given returns of 42.12% from 30th August 2023 to 30th August 2024. During the same period, the Nifty 50, Nifty 500, and Nifty IT provided returns of 31.07%, 40.24%, and 37.29%, respectively.
The BSE TECk Index has been offering consistent returns over the past five years. The index only underperformed in CY 2022, when the global-economical recovery post COVID, drop in GDP numbers of US in first quarter, Tech sector shares underperformance, impacted the index. In 2023, the index has given 18.8% return. While in 2020 it offered 43.8% return and 49.7% return in 2021.
The study also reveals that from March 2024 to August 2024, the BSE TECk delivered a return of 23.91%, followed by the Nifty IT at 22.61%. The Nifty 50 and Nifty 500 had returns of 13.03% and 17.18%, respectively.
In the three months from June to August 2024, the BSE TECk recorded returns of 27.37%. In comparison, the Nifty 50, Nifty 500, and Nifty IT provided returns of 12.01%, 12.47%, and 32.12%, respectively.
In the last 1 month (August 1, 2024, to August 30, 2024), the BSE TECk showed growth of 4.58%. The Nifty IT achieved growth of 4.74% during the same period. The Nifty 50 and Nifty 500 recorded returns of 1.14% and 0.87%, respectively, in August 2024.
Returns as on August 30, 2024 | ||||
Period | Nifty 50 | Nifty 500 | Nifty IT | BSE TECk |
1 Month | 1.14 | 0.87 | 4.74 | 4.58 |
3 Months | 12.01 | 12.47 | 32.12 | 27.37 |
6 Months | 13.03 | 17.18 | 22.61 | 23.91 |
1 Year | 31.07 | 40.24 | 37.29 | 42.12 |
5 Years | 17.37 | 20.87 | 22.86 | 21.51 |
7 Years | 14.66 | 15.79 | 22.54 | 20.13 |
Source: MFI ICRA
The study shows that an investment of Rs. 1,00,000 in the BSE TECk would have grown to Rs. 1,42,123 in the last year. Meanwhile, an investment of Rs. 1,00,000 would have grown to Rs. 3,56,009 over a period of 7 years. For the same period, an investment of Rs. 1,00,000 in the Nifty 50, Nifty 500, and Nifty IT would have grown to Rs. 2,57,809, Rs. 2,75,983, and Rs. 4,08,462, respectively.
Value of Investment of Rs 1 Lakh as on August 30, 2024 | ||||
Period | Nifty 50 | Nifty 500 | Nifty IT | BSE TECk |
1 Month | 1,01,141 | 1,00,866 | 1,04,741 | 1,04,585 |
3 Months | 1,12,007 | 1,12,468 | 1,32,118 | 1,27,365 |
6 Months | 1,13,029 | 1,17,178 | 1,22,608 | 1,23,911 |
1 Year | 1,31,070 | 1,40,239 | 1,37,295 | 1,42,123 |
3 Years | 1,47,301 | 1,63,058 | 1,23,771 | 1,33,513 |
7 Years | 2,57,809 | 2,75,983 | 4,08,462 | 3,56,009 |
Source: MFI ICRA
As mentioned in Motilal Oswal's 26th Annual Wealth Creation Study by Raamdeo Agrawal, Chairman of MOFSL: Atoms to Bits, MOAMC is positive about the opportunities in Technology sector. It believes that the digital ecosystem in India is right for Atoms-to-Bits and that India is ready to unlock its digital potential. Globally, value is migrating from Atoms (businesses dealing in physical matter) to Bits (businesses which are digital in nature). This has already played out in a big way in the US.
