Blue Chip Stocks: Nifty50 vs. Nifty Next50: List A Big Caps Win Battle Against Budding Blue Chips
However, Dalal Street’s safest bets, the Nifty50 counters, outperformed the next index constituents or the Nifty Next 50 pack.
According to data from Ace Equity, Nifty50 outperformed the Nifty Next 50 index on several metrics. However, the best performer of the latter outclassed the best performing title of the former.
Fifty stocks in the NSE’s benchmark index generated an average return of 3.43% on an annual basis through October 12. However, the next 49 large-cap counters fell 1.45% over the same period.
ETmarkets.com did not take into account Life Insurance Corporation of India, which was recently added to the Nifty Next 50 index. The meter was listed in May and its year-to-date performance is not available.
About 30 companies in the Nifty50 index have posted positive returns so far this year, while only 16 constituents in the Nifty Next 50 index have been able to perform in the same direction.
Sixteen stocks in the Nifty50 index generated double-digit returns, while only 10 stocks in the next index were able to do so.
Even after excluding
20 shares of Nifty Next 50 plunged 10-51%, while the 14 shares of Nifty 50 fell 10-43% in the given period.
However, the best Nifty Next 50 performer is
, which generated a return of 95% on a YTD basis. While Nifty 50’s latest addition, , is its best performer with a 90% increase.
Only two other Nifty50 stocks –
and ITCs – have jumped more than 50% so far in 2022, while the other four Nifty Next 50 stocks – , and – have soared as much as 86%.
Market participants continue to remain bullish on India Inc and their outperformance against their longer-term global peers. Some suggest that the increased national participation is a great benefit for the Indian market.
“I have always thought that in any country including India, it is better for locals to like the market than foreigners because foreigners mean hot money,” said Mark Matthews, MD, Julius Bar.
“They will run away in a crisis. These are the home buyers every country must depend on,” he added. “Locals know their market best and buy the vote of confidence, knowing what’s really going on.”
Other market giants believe India’s economy is strong and resilient enough to outperform its global counterparts over the next decade.
“No other country in the world has the chance to do what India can do in the next 10 to 15 years. None, because no other country has the workforce dynamics that India a,” said Jim O’Neill, a former British Treasury minister.
“Against that, the Indian market is priced quite well compared to others, and if we get a strong rally in global markets, I’m pretty sure other markets will outperform India for a while,” he said. he added.
However, not everyone swears by the meteoric rise of large-cap counters. A few analysts believe that mid- and small-cap counters are likely to outperform their larger counterparts over the long term.
“Over the next decade, India is likely to gain dominance over China when it comes to a number of sectors such as chemicals, pharmaceuticals, steel, etc.,” said Kunal Bhakta, Investment Advisor, First Water Capital.
“Over a period of time, small and mid-caps will continue to outperform their large-cap counterparts, even on a risk-adjusted basis. probably large caps over the next 3-5-7 years,” he added.
With data entries by Ritesh Presswala
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)