Junior Nifty 50 Surpasses Nifty 50 Performance in February with 12 Stocks Surging Up to 30%

The Nifty 50 index, which represents the top 50 blue-chip companies in India, has seen significant fluctuations this month due to various events such as the interim budget, RBI policy meeting, the US Fed’s inflation data, Q3 corporate earnings, and the surge in crude oil prices. In contrast, the Nifty 50 Junior (Nifty Next 50) has outperformed the benchmark index by a wide margin, experiencing a 5.94% return compared to Nifty 50’s 1.45% gain in the current month.

Year-to-date, Nifty 50 Junior has risen by 9.83%, while Nifty 50 recorded a 1.42% increase. Looking at the yearly performance, the Nifty 50 Junior yielded a 26.45% return in CY23, compared to the Nifty 50’s 20% increase.

Analysts have attributed this divergence to the fact that the Nifty Next 50 index comprises a greater proportion of companies from performing sectors, compared to the Nifty 50 index, which is currently being weighed down by the financial sector.

Trent leads the Nifty 50 Junior index gainers with a 30% return, followed by Indian Oil Corporation with a return of 27.25%. Other notable gainers in February include Canara Bank, Zydus Lifesciences, Bosch, Bank of Baroda, Adani Green Energy, ICICI Lombard General Insurance, Zomato, Varun Beverages, and Punjab National Bank, with gains ranging between 10% and 22%.

Looking at the yearly performance, eight stocks within the Nifty 50 Junior 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 have also produced multi-bagger returns, ranging from 100% to 124% in the last one-year time frame.

The prevailing market trends indicate that the oil & gas, power, CPSE, and hospital stocks have gained momentum, while the leading private banks have underperformed, according to Kapil Shah, Technical Research Emkay Global.

In conclusion, the Nifty 50 Junior has outperformed the Nifty 50 index in February, with several stocks showing significant gains, largely attributed to the performance of companies in performing sectors and industry trends.