Negative impactStocks
Explained: 13 reasons why the Nifty could not deliver more in last 5 years
Economic Times 1 hr ago·22 Sept 2026, 12:31 am
The Nifty 50 index has delivered gains over the last five years, but this overall success has been masked by the poor performance of a few specific stocks. These underperformers have dragged down the index's average return. If these weak stocks were removed, the index's performance would have been significantly stronger.
This divergence highlights a key difference between passive and active investing. Passive funds that track the Nifty 50 are forced to hold these underperforming stocks. In contrast, actively managed funds have the flexibility to avoid them. This flexibility allows these funds to potentially deliver better returns than the benchmark index.
Excerpt from Economic Times
Over a five-year period, thirteen stocks within the Nifty index adversely affected its overall performance, resulting in negative returns for these specific laggards. Conversely, the Nifty 50 index itself witnessed gains. Had these underperforming stocks been excluded, the index's returns would have been significantly…Read the original at Economic Times
Key takeaways
- Category: Stocks.
- AI reads the tone as negative (potentially bearish) for the stock.
Why it matters
A routine update. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
