Investors shift to India's NSE Nifty Next 50 Index due to potential outperformance and 20% earnings growth.
India's NSE Nifty Next 50 Index is attracting investors seeking pockets of outperformance as the market hovers near record highs. Earnings growth is a key metric, with forward profit estimates for this index rising 20% this year, outpacing the 3.5% increase for the larger Nifty 50. The Nifty Next's biggest components are industrial and materials firms set to benefit from an economy projected to grow by more than 7% in 2024. Foreign investors, particularly the more savvy ones, are increasingly looking beyond the Nifty 50, with a focus on the second band of 50 companies. An eight-year rally in Indian blue chips has driven up valuations, increasing interest in the Nifty Next 50 Index.
April 08, 2024
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