The Indian equity market has been facing high levels of volatility since November 2021.
Global factors, namely the US Federal Reserve’s indication in December 2021 that it would start withdrawing measures it had previously extended during the pandemic along with Russia’s invasion of Ukraine in February of 2022, only worsened the situation.
The Indian market, like everywhere else, also reacted with unprecedented price volatility. Two major indices – the NSE Nifty 50 and the S&P BSE Sensex – around which the Indian stock market revolves, have since then, reacted much like their global peers in relation to this development.
That said, the Indian stock market suffered less during this period, compared to other global markets despite headwinds and an uncertain interest rate scenario internationally in the face of rising inflation.
In this context, here’s a look at the stocks that have helped maintain the upward momentum in the market.
Here are a few interesting things to know about Nifty 50 Index.
1] The Nifty index represents about 66.8 per cent of the free float market capitalisation of the stocks listed on the National Stock Exchange (NSE).
A deeper look at the numbers reveal that the Nifty 50 (data as on November 04, 2022) is almost flat in the last one year, but 43 out of the total 50 stocks traded are in the positive territory.
2] The difference between the best and worst performers, though, is huge, 157 per cent, to be precise. The newly-added Adani Enterprises Ltd. from the metal and mining sector is up by 157 per cent, and paint Asian Paint is just up by about 0.7 per cent.
3] The financial services comprises the bulk of Nifty 50 stocks at 36.82 per cent, followed by Information Technology (13.82 per cent) and oil and gas (12.47 per cent).
4] Financial services have dominated the Nifty 50 index since inception in 1995, except for 2005, when IT became the dominant sector (20 per cent) against 12.8 per cent for financial services. In 2021 and 2022, financial services were dominant at 37 per cent compared to 13.8 per cent for IT.
5] The top-10 stocks that contribute the most to Nifty 50 movement are Reliance (10.84 per cent), HDFC Bank (8.27 per cent), and ICICI Bank (7.94 per cent)
To know more, read here https://outlookmoney.com/magazine/story/how-indian-indices-are-poised-to-beat-global-downturn-1185
