2024-04-17 19:10:52
Geopolitical tension is currently increasing due to Iran’s attack on Israel. Therefore, its effect is visible in the stock market also. But investors are still looking for better performing stocks. In such, Nifty Next 50 Index Is in the headlines. It tracks those companies which may soon join Nifty 50, and the profits of these companies are increasing rapidly. Fintech firm of Motilal Oswal Group boom recession Telling us why Nifty Next 50 is attracting investors and why it can be beneficial for you too.
39 percent growth in revenue of Nifty 50
According to our partner Times of India, the Nifty Next 50 index is poised to achieve a revenue growth of 39% in the coming year. This figure is based on Bloomberg estimates. Even after a spectacular rise of 65% last year, the Nifty Next 50 is expected to continue its stellar performance amid broad market challenges. Recently, the index recorded its most successful quarter since 2009, outperforming the broader NSE Nifty 50 index. Composed of companies likely to be included in the Nifty 50, the index’s revenue estimates have seen it grow 20% so far this year, significantly outpacing the Nifty index’s 3.5% growth. But what is the reason that is forcing Nifty Next 50 to perform better, let us try to understand.
What is the reason behind the growth of Nifty Next 50?
There are many reasons behind the rapid rise of Nifty Next 50, some of the major reasons are mentioned below:
High Revenue Growth: The income of Nifty Next 50 companies is growing rapidly. According to estimates, the revenue of these companies is expected to grow by 39% in the next one year.
Investors’ interest: The Indian stock market is already trading near its highs, due to which investors are now looking to invest in companies which are not included in the Nifty 50. Nifty Next 50 has emerged as a good option for such investors.
Development of Indian Economy: An important reason behind the success of Nifty Next 50 is that the major companies included in it are related to the industrial and material sector. The Indian economy is projected to grow by more than 7% in 2024 and these companies will directly benefit from it.
Nifty Next 50 Performance
Nifty Next 50 has become the best performing index compared to other indices. You can guess this from the fact that it has grown by about 65% in the last one year, whereas if we talk only about 2024, it has increased by about 18%, while Nifty has grown by only about 4%. -Close growth has been observed.
What is special for investors?
Companies included in the Nifty Next 50 are generally from sectors that are expected to grow rapidly in India. This means that investors are investing in companies that are expected to perform well in the future. Since the growth rate of Indian economy is better at this time. Therefore, Nifty 50 companies will also benefit from this improvement.
things about the future
Along with the growth of the Indian economy, Nifty Next 50 is also expected to perform strongly. Investors are looking for stocks that can grow with the Indian economy and Nifty Next 50 is emerging as an attractive option in this case. However, before taking any investment decision, you should do your research and seek advice from a financial expert if necessary. Considering factors like high revenue growth, investor interest and the growth of the Indian economy, it can be assumed that Nifty Next 50 can perform well in the times to come.