 "SGX Nifty")
In the last ten years, India's broadest index, the Nifty 500, has outperformed most of the world’s leading indices except the US' Nasdaq 100, a study by Motilal Oswal has found.
During the December 31, 2013 to December 31, 2023 period, the tech-heavy Nasdaq 100 gave returns of around 21.5 percent in Indian rupee terms while the Nifty 500 gave 16 percent, clinching the second spot. In comparison, the S&P 500, MSCI Emerging Markets, and MSCI EAFE (Developed Markets ex-US) have demonstrated growth rates of 15.4%, 6.1%, and 7.9%, respectively, during the same period, noted the study.
Performance comparison with the world’s leading indices
Disclaimer - Data as of 31-Dec-2023, Source- MOAMC, NSE, Bloomberg, and FactSet. All benchmark performances are in INR total return.
Over the past decade, India has ascended from the 10th to the 5th position in the global economy. Projections from industry experts indicate a further climb in rankings by 2030. Investors keen on capitalizing on India's robust growth narrative may find value in considering an investment in a comprehensive passive fund," said Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd.
More From This Section
He further added “The Nifty 500 Index stands out as an optimal choice, providing extensive exposure to Indian equities with over 90% market capitalization coverage. Boasting a well-balanced representation across large-, mid-, and small-cap segments, this index demonstrates a robust diversification in both individual stocks and sectoral allocations. Notably, the Nifty 500 has demonstrated a tendency to outperform the Nifty 50 during bullish market phases, while also offering a degree of resilience against downturns, particularly in comparison to mid and small-caps.”
Energy and Financials were best best-performing sectors over the last 10 years (Dec 31 2013-2023) –
The study reveals that the Energy, IT, and Financial were the best-performing sectors, over last 10 years as of December 2023. Energy topped the chart with 17.8% growth followed by Financial Service and IT generating, 17.2% and 16.3%, respectively. While, during 2003-2013, FMCG (21.8%), Auto (20.1%), and Financial Services (18.5%), were the top 3 performing sectors; it is interesting to note that the major uptick in these sectors was seen during the 2008-2013 on account of recovery from the global financial crises.
Midcap outperformed smallcap and largecap indices -
Among large, mid and small caps, the Nifty Midcap 100 Index noted the highest total returns of 20.3% followed by Nifty Smallcap 100 (17.3%) and Nifty 50 Index (14.6%) during 2013-2023. Over the 10 years ending during 2003-2013, the Nifty 50, Nifty Midcap 100 and Nifty Smallcap 100 noted similar total returns ranging between 14%-15%.
Disclaimer - Data as of 31-Dec-2023, Source- MOAMC, NSE, Bloomberg, and FactSet. All benchmark performances are in INR total return.
