Best and the worst Nifty stocks performance

In the equity markets, it is said that the best returns are visible in the long run. However, we do know that over a longer period, even index funds give good returns. Not all investors in equities will have a time frame of perpetuity like Warren Buffett. To address that gap, we look at returns at two levels. Firstly, we look at returns at an annual level i.e., how the stocks performed compared to a year ago. Secondly, we also look at returns on a monthly basis, which is more to capture the high frequency performance of the stock. Here, let us look at the annual and monthly returns on the Nifty 50 stocks and track the Best and worst performers over both the time frames. For all calculations, the closing price on the NSE for 02nd March 2023 has been used as reference.

Nifty – Best performers over last one month

Over the last one month, the Nifty gave -1.93% returns. Out of the total of 50 stocks, 15 stocks gave positive returns in the month while 35 stocks gave negative returns. The table below captures the top return generators among the Nifty 50 stocks over last one month.

Data Source: NSE

Some of the top gainers in the monthly returns list are stocks where the momentum has been the maximum. Tech Mahindra has emerged as the least vulnerable IT stock. ITC has been seeing a lot of value buying after it hardly moved in the last 3 years. The stability in the cigarette tax and the growth in FMCG business is helping ITC. A similar FMCG story was visible in Britannia also. Among financials, ICICI Bank, IndusInd Bank and Bajaj Finance gained from sharp improvement in net interest margins (NIM) while Ultratech gained from expectations of buoyant cement prices amidst strong demand from the commercial and infrastructure segments.

Nifty – Worst performers over last one month

With the Nifty falling by -1.93% in the last month and 35 out of 50 stocks in the negative, the month of February surely had its substantial share of Nifty losers too. The table below captures the worst performers among the Nifty 50 stocks over the last one month.

No prizes for guessing, but Adani Enterprises was the top loser on the Nifty at -45.95%, as the period almost coincided with the aftermath of the Hindenburg report. Pharma and auto stocks like Cipla, Divi, Hero Moto, M&M and Tata Motors were among the top losers in the previous month. Pharma companies are again seeing regulatory pressure from the USFDA while auto companies are witnessing slowing demand. The major losers in the month also include metal stocks like Tata Steel and Hindalco on fears that the China recovery may take longer to manifest, denting demand in the short term.

Nifty – Best performers over last 1 Year

With the Nifty rising 4.31% in the last one year and 27 out of 50 stocks in the positive, the last one year surely had its own share of Nifty gainers. The table below captures the best performers among the Nifty 50 stocks over the last 1 year.

The two clear outperformers on the Nifty in the last one year were ITC and M&M; gaining 74.4% and 60.8% respectively. The ITC stock has been in an uptrend ever since institutions started buying into the stock. M&M has gained from its tractor business as well as the huge order backlog in its auto business. PSUs like NTPC and Coal India also gained from attractive dividend yields and strong growth numbers. Sun Pharma has been among the handful of pharma companies that have done well in the last one year.

Nifty – Worst performers over last 1 Year

Despite the Nifty rising 4.31% in the last one year, 23 out of 50 stocks were still in the negative. The table below captures the worst performers among the Nifty 50 stocks over the last 1 year in terms of point-to-point returns.

Interestingly, Adani Enterprises does not figure in the yearly losers, although Adani Ports does feature. Among the top losers, Hindalco was more about the correction in aluminium prices and weak demand, especially from the West. Divi’s Lab took a hit on USFDA strictures while for Wipro and Infosys, the year has been tough with the negative headwinds for the IT sector. Interestingly stocks like Tech Mahindra, Bajaj Finance and Apollo Hospitals, which figure among the best monthly performers are among the worst annual performers.

The moral of the story is that barring some sectors like metals and pharma, where the problems are structural, in most other cases, the movers have been stock specific.