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Business News/ Markets / Stock Markets/  Nifty 50 Junior outperforms Nifty 50 in February; 12 stocks surge up to 30%

Nifty 50 Junior outperforms Nifty 50 in February; 12 stocks surge up to 30%

Nifty 50 Junior outperformed Nifty 50 in both monthly and yearly comparisons, with strong returns from stocks like Zomato and Adani Green Energy. Nifty 50 Junior has delivered a return of 5.94% in the current month, while Nifty 50 has gained 1.45% in the same period.

In terms of top performers, Trent leads the Nifty 50 Junior index gainers with a 30% return.Premium
In terms of top performers, Trent leads the Nifty 50 Junior index gainers with a 30% return.

Nifty 50, which represents the country’s top 50 blue-chip companies across various sectors, has experienced high volatility this month, owing to significant events including the interim budget, RBI policy meeting, the US Fed's inflation data, Q3 corporate earnings, and the surge in crude oil prices, all of which contributed to the index's wild fluctuations.

In contrast, Nifty 50 Junior (Nifty Next 50), representing the subsequent tier of liquid securities after Nifty 50, has significantly gained and outperformed the benchmark index with a wide margin. 

In the current month, Nifty 50 Junior saw a 5.94% return, surpassing Nifty 50's 1.45% gain. Year-to-date, Nifty 50 Junior rose by 9.83%, whereas Nifty 50 recorded a 1.42% increase.

Also Read: 13 Nifty 500 stocks priced under 100 have gained up to 425% in a year; Suzlon Energy stands at the top

Looking back, the Nifty 50 Junior yielded a 26.45% return in CY23, compared to the Nifty 50's 20% increase.

Commenting on this divergence, Kapil Shah, Technical Research Emkay Global, said," The prevailing market trends indicate that the oil & gas, power, CPSE, and hospital stocks have gained momentum, while the leading private banks have underperformed."

"Notably, the Nifty Next 50 index comprises a greater proportion of companies from performing sectors as compared to the Nifty 50 index, which is currently being weighed down by the financial sector, which occupies a substantial share of the pie chart," he added. 

Also Read: Dynacons Systems: This small-cap stock turned 10,000 into 4.4 lakh in less than 4 years

"This may explain the stronger performance of the Nifty Next 50 index in contrast to the Nifty 50 index. It is imperative to recognise that the underperformance of financial stocks may have a significant impact on the overall stock market performance," he further stated. 

In terms of top performers, Trent leads the Nifty 50 Junior index gainers with a 30% return. The stock began its upward trend after company released its Q3 numbers on February 7, gaining 32.6% in the following eight sessions. 

Indian Oil Corporation stood as the second top gainer with a return of 27.25%. Other stocks such as Canara Bank, Zydus Lifesciences, Bosch, Bank of Baroda, Adani Green Energy, ICICI Lombard General Insurance, Zomato, Varun Beverages, and Punjab National Bank have also gained between 10% and 22% in February so far. 

Looking at the yearly performance, eight stocks within the Nifty 50 Junior, namely Zomato, Adani Green Energy, Trent, Punjab National Bank, Hindustan Aeronautics, Indian Oil Corporation, DLF, and Varun Beverages, have yielded multi-bagger returns ranging between 100% and 208%. 

Among the Nifty 50, Coal India, Adani Ports & Special Economic Zone, Bajaj Auto, Tata Motors, NTPC, and BPCL also produced multi-bagger returns, ranging from 100% to 124% in the last one-year time frame. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 16 Feb 2024, 06:18 PM IST
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