Nifty Next 50, the index of the 50 stocks ranked immediately after those in the Nifty 50 index in terms of liquidity and market capitalisation, has vastly outperformed the benchmark indices over the last one year.
Nifty Next 50 has soared over 36% in the last 12 months, compared with the benchmark Nifty 50’s 22% and BSE Sensex’s 20.34% returns in the same period. Earlier last week, Nifty Next 50 made a new all-time high of 25,740.75 points, rising 7,048.4 points from 18,656.35 points a year ago.
Indian stocks, including those comprising the Nifty Next 50, have been on a sustained rally since late December-January, backed by global and domestic factors. Earlier last month, the results of elections in five states gave a major boost to the Indian stock markets, with the Prime Minister Narendra Modi-led BJP within the key state of Uttar Pradesh by a landslide.
Outperforming the rally in the benchmark indices, the stocks comprising Nifty 50 have recently hit their one-year highs, with a few of those making their all-time highs.
Earlier last week, 8 stocks in the index made their new all-time highs, namely ; JSW steel Ltd (Rs 207); Cadila Healthcare Ltd (Rs 466.85); Bajaj Finance Ltd (Rs 1,224); Havells India Ltd (Rs 478.5) and Titan Company Ltd (Rs 495.55); NHPC recently soared to its seven-year high of Rs 33.1; REC Ltd. and Power Finance Corp Ltd making 32-month highs of Rs 186.9; Rs 156.7 respectively; Motherson Sumi Systems Ltd, which made a fresh year high of Rs 385; two major Navratna companies BHEL and SAIL, which also touched their year highs of Rs 180.8 and Rs 68.6 respectively.
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A few other stocks have also fared well today are ABB India Ltd touching a 22-month high of Rs 1,459 surging 5.73% from its previous close, Bajaj Finserv (Rs 4,324); LIC Housing Finance (Rs 633.55), Cummins India Ltd (Rs 987.8) made their yearly-high. Other stocks that have shone in the last two trading weeks include Procter & Gamble Hygiene and Health Care Ltd Rs 7635.7; Vedanta Ltd, which touched its 31-month high of Rs 278.1.
On the other hand, one of the India’s top state-run bank PNB has surged 87% to Rs 151.25 from its last year value of Rs 80.9.
The Nifty Next 50 Index represents about 12% of the free float market capitalization of the stocks listed on NSE as on March 31, 2016. The total traded value for the last six months March 2016 of all index constituents is approximately 13% of the traded value of all stocks on NSE.
The index has a mix of sectors include Consumer Goods, Financial Services, Metals, Pharma Industrial Manufacturing, Energy, Automobile, Fertilisers & Pesticides, Services, Cement & Cement Products, Chemicals, Telecom, IT and Construction.