Stocks of MNCs zoom up to 100% in two months
Published On: Monday, June 1, 2020 | By: Team KnowMyStock
During the last few months, stocks of multinational companies (MNCs) have outrun the broader markets by gaining up to 100 percent. The Nifty MNC index has gained 29 percent from its March lows, as against 26 percent rise in the Nifty 50 index till Friday. Even on a year-to-date (YTD) basis, the fall in the Nifty MNC index at 9.4 percent is less than the Nifty50 index, which slipped 21.3 percent during this period. Vodafone Idea, Oracle Financial Services, Sterlite Technologies, Britannia Industries, Sterlite Technologies, Nestle India, Honeywell Automation, Maruti Suzuki India, United Spirits and Ambuja Cements from the Nifty MNC index have rallied over 30 percent. GMM Pfaudler, Bayer Crop Sciences, and AstraZeneca Pharma India are some of the non-index MNC stocks that have rallied between 60 percent and 90 percent during this period.
The outperformance of MNCs has seen 19 such stocks grab a spot in the top 100 list of companies by market capitalisation (market-cap), compared to 14 companies as on January 20, 2020, when the benchmark indices hit their respective all-time high.
“Stocks of MNCs have been driven higher by two key factors – liquidity in the markets and delisting hope. There have been expectations that some MNCs may look to delist from the Indian bourses, which caught investors’ attention. Companies that have a good pedigree and a sound business model will continue to do well. One needs to evaluate on case-to-case basis and take an investment call accordingly. But broadly, one can stay invested for now,” say experts.
Tags: Stocks of MNCs zoom
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
