The BSE Technology Index (TECk), tracking technology companies on the BSE, recorded a remarkable 25.3% return in the first eight months of 2024, surpassing key benchmarks such as the Nifty 50 and Nifty 500, as per a report by Motilal Oswal Asset Management Company.
Over the last year, from August 30, 2023, to August 30, 2024, the BSE TECk achieved a return of 42.12%. In comparison, the Nifty 50, Nifty 500, and Nifty IT yielded returns of 31.07%, 40.24%, and 37.29%, respectively, during the same period.
The BSE TECk Index has been known for its consistent performance over the past five years. It experienced a setback in 2022, attributed to factors like the global economic recovery post-COVID, a decline in US GDP figures in the first quarter, and underperformance of tech sector shares. In 2023, the index delivered an 18.8% return. Notably, it delivered returns of 43.8% in 2020 and 49.7% in 2021.
The study showed the following returns for various indices during specific time periods:
From March 2024 to August 2024:
BSE TECk: 23.91% Nifty IT: 22.61% Nifty 50: 13.03% Nifty 500: 17.18%
During the three months from June to August 2024: BSE TECk: 27.37% Nifty 50: 12.01% Nifty 500: 12.47% Nifty IT: 32.12%
For the month of August 2024 (August 1, 2024, to August 30, 2024): BSE TECk: 4.58% Nifty IT: 4.74% Nifty 50: 1.14% Nifty 500: 0.87%
Rs 1 lakh investment in BSE TECk index
The study indicates that an initial investment of Rs. 1,00,000 in the BSE TECk index would have increased to Rs. 1,42,123 within the last year. Similarly, investing Rs. 1,00,000 would have resulted in a growth to Rs. 3,56,009 over a span of 7 years. Furthermore, for the same duration, an investment of Rs. 1,00,000 in the Nifty 50, Nifty 500, and Nifty IT indices would have grown to Rs. 2,57,809, Rs. 2,75,983, and Rs. 4,08,462, respectively.
Points to note
1. Over the last five years, BSE TECk has demonstrated a consistent trend of strong performance, emphasizing its robust capabilities and promising outlook.
2. Notably, since March 2024, the BSE TECk has displayed a remarkable surge, surpassing the Nifty 50 and Nifty 500 indices in terms of returns.
3. The global economic recovery, following the impact of the COVID-19 pandemic, has provided a significant boost to the technology sector worldwide.
4. This revival has been fueled by ongoing advancements in technology and innovation, which have contributed to the sector's sustained growth. As a result, numerous technology companies have demonstrated strong financial performance and promising growth prospects.
5. The remarkable performance of the BSE TECk index emphasizes the potential opportunities available for investors looking to capitalize on the burgeoning technology sector in India.