More than 50% of Nifti50 stocks have outperformed the indices for at least 5 out of 10 years! | Daily News Byte


The year 2022 has not been very good for stocks that are part of the benchmark Nifti50 index. Data shows that about 18 of them have produced negative returns so far this year, even though the index has produced net positive returns.

However, an analysis of stock performance over the past 10 years shows that more than half of the constituents have provided index returns for at least five years.

tops the list as the stock has outperformed the index for nine years, but failed to extend its winning streak to a 10th year in 2022.

In 2014 and 2017, the non-banking financial company gave multiple returns.

Another stock that has outperformed the index in eight of the last 10 years is JSV Steel.

Despite a cut in earnings due to a jump in raw material prices and reduced international demand in 2022, shares of the country’s largest steelmaker have delivered positive returns for three straight years.

Other better results
Asian Paints, , , Divi’s Laboratories, HDFC Bank, , , and are the eight stocks that have outperformed the Nifti50 in seven out of 10 years.

RIL shares have underperformed the indices for seven consecutive years and the stock also hit a lifetime high earlier this year.

About 15 stocks that are part of the index have outperformed the benchmark in six out of 10 years. This includes Adani Group Companies –

and Adani Ports and Special Economic Zone. , ICICI Bank, Larsen & Toubro, Britannia Industries, , , , and other stocks that have outperformed the indices in six out of 10 years.

Meanwhile, 10 Nifti 50 stocks have managed to beat the index in five out of 10 years. This includes names like Bharti Airtel, Housing Development Finance Corp, Infosis,

Nestle India, , , and Tech Mahindra.

What does 2023 look like for index stocks?
Analysts expect a mixed performance for index stocks as volatility is expected to remain high against the backdrop of the COVID situation in China, likely recessions in the US and Europe, and ongoing geopolitical tensions between Ukraine and Russia.

Furthermore, central banks around the world are expected to continue raising rates at least in the first half of the year, as the fight against inflation is far from over.

However, experts believe that domestically related sectors are doing well as India’s growth outlook remains positive.

Most analysts are bullish on the banking and financial sector, which have the largest weighting in the Nifty50 and see stocks in this space outperforming the index in 2023.

“Nifti Bank has outperformed the Nifti50 YTD and we believe healthy growth momentum, stable quality and limited capital requirements will support continued performance,” brokerage Jefferies India said in its report.

Citing attractive valuations for the banking package as well, the brokerage has ICICI Bank and IndusInd Bank as its top picks.

Given the prevailing global headwinds, Nomura Financial Advisors and Securities prefers to bet on domestic sectors over exporters.

As a result, brokerages are overweight the banks, consumer staples, infrastructure, construction and telecom sectors, while underweight consumer discretionary, capital goods, metals and technology services.

State Bank of India, Akis Bank, L&T, Hindustan Unilever and Reliance Industries are Nomura’s top picks among index stocks.

(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own. They do not represent the views of the Economic Times)


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