Infosys is undisputed numero uno

It has been a decent run for the ET500 companies with a growth in market cap by 25% compared to the last edition. Infosys has once again bagged the number one spot after leading in the June '05 edition of ET500 as well.

Going by the fact that eight performance parameters have been considered to arrive at the rank of ET500 companies, it is laudable that Infosys has emerged as the numero uno for the second time in a row. TCS and Wipro occupy the second and third ranks, respectively.

IT as a sector has thus bagged all the laurels. Bharti Tele-Ventures stands next in the rankings list followed by ITC at fifth rank.

After IT, the engineering sector has grown at the next highest rate with its market cap jumping by 61% in the last six months.
Capacity addition in generation, transmission and in sprucing up of the distribution network has lifted the fortunes of the sector. Global softening of steel prices has further provided a boost to the fortunes of these companies. Prominent companies in ET500 from this sector are Siemens ranked at 10, Bhel at 18 and ABB at 22.

The FMCG sector has recovered from the prolonged slump it had slipped into for years. The performance of this sector has improved significantly in the last few quarters. Volume growth is the primary driver while price increases played a small role.

Companies representing the sector are ITC at fifth rank and Nestle at 14 while HLL has recovered in this round, moving up from 185 to 28.
The auto sector has seen a concerted movement towards style and brand power, in addition to safety and efficiency. In motorcycles and cars, customer preference seems to be shifting towards higher power vehicles. Hero Honda leads the table at sixth rank followed by Tata Motors at ninth rank.

Among the leading sectors, only metals sector has witnessed a fall in market cap in the last six months. Concerns over falling steel prices and uncertainty about future earning growth have taken their toll on market valuations. Tata Steel and SAIL have slipped in the rankings from seventh and eighth to 12 and 13 ranks, respectively.
 
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