Mumbai: Thirteen stocks that make up nearly a third of the Nifty have weighed heavily on the benchmark’s performance over the past five years. The stocks, which account for 33.7% of the index, delivered an annualised return of negative 0.8% between September 2021 and August 2026, according to 360 One Wealth’s study. The Nifty 50 returned 7.1% annually during this period, but excluding these 13 laggards, the return would have been 11%, said the study by Varuk Sikka, executive director of the firm.

Read more: Pine Labs block deal: Mastercard Asia may divest 4.3% equity worth Rs 892 crore
The biggest weights among these stocks are HDFC Bank, Reliance Industries, Infosys, Kotak Mahindra Bank and TCS, which together account for about 27% of the index. IT services companies including Infosys, TCS, HCL Technologies, Tech Mahindra and Wipro, which together make up 8.5% of the Nifty, were hurt by factors including AI-led pressure on the billable-hour model. HDFC Bank faced margin pressure following its merger, while regulatory changes weighed on HDFC Life. Consumer companies such as Hindustan Unilever and Asian Paints faced pressure from rising input costs and increased competition.
Read more: Landmark NSE IPO threatens to hollow out Dalal Street’s shadow market
This drag from a handful of heavyweight stocks also helped active mutual funds outperform the index, as many of them had lower exposure to these laggards. While Nifty 50 index funds returned 8.32% annually over the period, large-cap funds averaged 11.41%, flexi-cap funds 12.23% and multi-cap funds 16.30%, according to 360 One Wealth. Typical active schemes had 15-22% of their portfolios invested in the 13 stocks compared with about 34% for the index, with this underweight alone accounting for roughly 1.5-2 percentage points of their outperformance, the study showed.

Yes. Corporate subscriptions are available for teams and organisations, with discounted rates as user numbers increase. Pricing starts from $1,625 + GST per user.
Get in touch
to discuss the right option for your organisation.

Business News subscriptions are used by executives, investors, consultants and professionals who need to stay informed and make better decisions about the WA market. When you subscribe you’ll get

• Unlimited access to WA’s most trusted business journalism
• Data & Insights — detailed profiles of WA companies, people, projects and deals
• MyBN — a personalised feed based on the companies, people and sectors you follow
• Special publications and industry reports
• Daily and weekly email newsletters

Data & Insights is a research tool built specifically for the WA market. It draws on more than 30 years of Business News reporting, updated regularly to reflect what’s happening now. Use it to:

• Look up detailed profiles of WA companies, including financials, directors and ownership
• Find decision-makers and track their career movements
• Research live and completed projects across WA industries
• Monitor deals, appointments and market activity
• Access industry rankings and league tables

Data & Insights is updated daily by our dedicated research team, which uses the latest announcements, ASX filings and editorial coverage to keep our person, company, list and project records up to date.

Business News welcome all opportunities to make our dataset accurate, complete and current, so if you have an update request, please email the team at
general@businessnews.com.au, and we’d be happy to assist.

MyBN
is part of every subscription. It’s your personalised view of Business News. You can follow the companies, people, sectors and projects that matter to you, and get a news feed and alerts tailored to your interests. You can save articles to read later and retain only what you need.

Only subscribers have full access to all content on the Business News website.

If staying informed about the WA economy is part of your job, and/or you’re looking for networking opportunities in WA, Business News is built for you.

Business News subscribers are:

• Executives and directors tracking competitors, clients and market movements
• Investors and advisers researching companies, deals and industry trends
• Consultants and professionals staying across sectors relevant to their clients
• Business owners looking for leads, context and market intelligence

Most Business News publications cover national or global markets. Business News is focused entirely on Western Australia, which means the journalism, the data and the intelligence are all built around WA companies, people and projects — not adapted from a national feed. Data & Insights, included with every subscription, combines more than 30 years of WA-specific editorial research with live business data. There’s no comparable product for the WA market.

The Morning Digest Email provides a comprehensive wrap of the major headlines, relevant to WA business, and includes with a snapshot of the overnight news covering oil, gold and ASX-listed companies.

The Afternoon Wrap Email focuses on the news covered by our team of journalists during the course of the working day, including exclusive stories and analysis, all of which relates to WA business and the local economy.

The BN Weekender Email contains a wrap of the Business News from the week that was, highlighting the top stories in each area of WA business.
Sign up for free.

We’re happy to help.
Get in touch
and our team will come back to you.