Nifty Auto vs Nifty Realty: Which sector is a better investment bet for long term?

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repo rate unchanged for the fifth time today, in the last policy meeting of the calendar year 2023. The Monetary Policy Committee (MPC) of the central bank also retained its stance of remaining focused on “withdrawal of accommodation." Read here: What are subtle hints from RBI monetary policy? 10 experts parse MPC decisions Amid this backdrop and the ongoing positive market sentiment, let's analyse between Nifty Auto and Nifty Realty, which sector has better growth opportunities in the long run. Looking at 2023 YTD, both of these sectors have outperformed the benchmark Nifty.

However, Nifty Realty is the better-performing index. The index has soared over 70 percent in 2023 YTD as against a 42 percent rise in Nifty Auto. In comparison, the benchmark Nifty has gained over 15 percent in this period.

Both Nifty Realty and Nifty Auto have given positive returns in 8 of the 12 months in the calendar year 2023 so far. Meanwhile, in the last one year as well, both Nifty Realty and Nifty Auto have outperformed the benchmark. However, the former has again emerged as a winner in this time period.

The realty index has surged over 60 percent in the last 1 year while the Nifty Auto has added 39 percent. In comparison, the benchmark Nifty advanced almost 13 percent in the last 1 year. In the long term (3 years) as well, Nifty Realty has given better and multibagger returns.