Nifty 50 hits 20,000: Underweight stocks that delivered big gains

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The Nifty 50 index crossed the 20,000 mark on September 11, 2023. This is a significant milestone, as it took the index just three years to reach this level from 10,000.

A study by ACEMF shows that half of the stocks in the Nifty 50 basket more than doubled over the last three years. Stocks with significant weight in the index, such as L&T, SBI, and ICICI Bank, grew notably and contributed remarkably.

However, some of the stocks that delivered the biggest gains were those with relatively lower weight in the index. These include Tata Motors, Apollo Hospitals Enterprise, and JSW Steel. These stocks gained significantly despite their lower weight in the index because many active fund managers bought them early in large quantities and benefitted from the subsequent upward movement in prices.

Here is a list of the top 10 underweight stocks in the Nifty 50 index that delivered the highest returns over the last three years:

  • Tata Motors: 340%
  • Apollo Hospitals Enterprise: 216%
  • JSW Steel: 186%
  • Hindalco Industries: 171%
  • NTPC: 170%
  • Grasim Industries: 158%
  • Adani Ports and Special Economic Zone: 157%
  • Oil and Natural Gas Corporation: 150%
  • IndusInd Bank: 138%

These stocks were held by a large number of active mutual funds (MFs) as of August 31, 2023. This shows that MF managers were bullish on these stocks and were willing to overweight them in their portfolios.

It is important to note that past performance is not a guarantee of future results. Investors should do their own research before making any investment decisions.


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