The Nifty 50, a key benchmark index representing the 50 largest companies by market capitalization on the National Stock Exchange of India, has delivered a healthy return of 21.31% in the past year. However, not all constituents of the index have kept pace with this growth. Notably, 21 stocks from the Nifty50 Index have underperformed, with some key sectors experiencing significant representation among these underperformers.
| Sr.No | Company Name | Return in 1 year (%) |
| 1 | SBI Life Insurance Company Ltd. | 20.87 |
| 2 | HCL Technologies Ltd. | 20.56 |
| 3 | Tata Consultancy Services Ltd. | 19.19 |
| 4 | Wipro Ltd. | 19.09 |
| 5 | ICICI Bank Ltd. | 18.76 |
| 6 | Titan Company Ltd. | 18.6 |
| 7 | IndusInd Bank Ltd. | 17.53 |
| 8 | Divi’s Laboratories Ltd. | 17.4 |
| 9 | Infosys Ltd. | 14.4 |
| 10 | Reliance Industries Ltd. | 14.32 |
| 11 | Nestle India Ltd. | 14.02 |
| 12 | Britannia Industries Ltd. | 11.22 |
| 13 | Bajaj Finserv Ltd. | 10.71 |
| 14 | ITC Ltd. | 2.2 |
| 15 | HDFC Life Insurance Company Ltd. | 0.27 |
| 16 | Bajaj Finance Ltd. | -0.54 |
| 17 | LTIMindtree Ltd. | -1.06 |
| 18 | Asian Paints Ltd. | -8.49 |
| 19 | Hindustan Unilever Ltd. | -10.45 |
| 20 | HDFC Bank Ltd. | -12.34 |
| 21 | Kotak Mahindra Bank Ltd. | -16 |
Among the underperforming stocks, Banking & Finance and Investment sector takes the lead with 7 stocks, followed by 5 stocks from the Information and Technology sector, and 4 from the FMCG sector. The remaining underperforming stocks belong to various other sectors. Interestingly, Reliance Industries, the heavyweight stock in the Nifty50, has also lagged behind the index’s returns over the past year.
A closer look at the top 5 stocks that are down from their 52-week high prices reveals interesting insights. LTI Mindtree Ltd and HDFC Life Insurance Company Ltd have seen declines of 27.89% and 21.74% respectively from its 52-week high price. Asian Paints Ltd and Kotak Mahindra Bank Ltd are down 20.69% and 20.29% respectively. HCL Technologies Ltd., despite being the closest to the Nifty50 returns with 20.56%, is notably down from its 52-week high by 21.27%.
| Sr.No | Company Name | Return in 1 year (%) | Down from 52w high |
| 1 | LTIMindtree Ltd. | -1.06 | 27.89 |
| 2 | HDFC Life Insurance Company Ltd. | 0.27 | 21.74 |
| 3 | HCL Technologies Ltd. | 20.56 | 21.27 |
| 4 | Asian Paints Ltd. | -8.49 | 20.69 |
| 5 | Kotak Mahindra Bank Ltd. | -16 | 20.29 |
The analysis of underperforming stocks in the Nifty50 Index provides valuable insights into sectoral trends and individual stock performance. While certain sectors like Banking & Finance and IT face challenges, others like FMCG also show signs of struggle. Investors can leverage this opportunity to make informed decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
Published on: May 15, 2024, 5:18 PM IST
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