The Nifty 50 index is considered to be one of the most important benchmark indices in India along with the BSE Sensex. It comprises fifty of the biggest companies in India by market capitalization.
This simply means that Nifty 50 tracks the market cap of the top fifty Indian companies using a weighted average method. That’s why many consider it to be a reliable indicator of the health of the Indian market.
Nifty 50 has hit multiple all-time highs over the past year owing to the stellar growth of several companies listed on the index. In this blog, we’ll take a look at 8 such companies that have performed well in 2021.
8 Best Performing Nifty 50 Stocks In 2023
Nifty 50 has grown by 27.54% YTD. This rapid surge has been fueled by companies like Tata Motors, Tata Steel, Bajaj Finance, and others who’ve grown by more than 100% since January 2021.
1. Tata Motors
Tata Motors (ticker: TATAMOTORS) is an auto manufacturer that falls under the Tata Group of companies. Its share price has skyrocketed from ₹186.50 at the start of 2021 to ₹504.50 in November 2021.
- Stock: Tata Motors
- Ticker: TATAMOTORS
- YTD growth: 172.04% (₹320.85)
- 1-year growth: 246.67% (₹361.00)
The company reported net revenue of ₹61,379 crores in Q2 FY22, which is a 14% increase year on year. However, the company logged a higher loss compared to the same quarter of the previous year.
2. Tata Steel
Tata Steel (ticker: TATASTEEL) is another surging stock from the Tata Group of companies to make this list. TATASTEEL has gained more than 100% since the start of 2021 on the back of strong earnings reports.
- Stock: Tata Steel
- Ticker: TATASTEEL
- YTD: 100.08% (₹643.60)
- 1-year growth: 164.45% (₹800.15)
Tata Steel unlocked its highest ever Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)of ₹16,185 crores in Q1 FY22 and a 36.4% rise in consolidated profit after tax to Rs.9,768 crores.
3. Bajaj Finserv Ltd
Bajaj Finance (ticker: BAJAJFINSV) is an NBFC that’s been on the up and up over the past few years. BAJAJFINSV has gained as much as 105% since the year began.
- Stock: Bajaj Finserv Ltd
- Ticker: BAJAJFINSV
- YTD: 105.85% (₹9,389.50)
- 1-year growth: 151.48% (₹10,998.85)
Bajaj Finserv posted consolidated revenue of ₹18,008 crores, up by 29.10% quarter on quarter. Consolidated profit after tax stood at ₹1,222 crores versus ₹986 crores in the same quarter last year.
4. Grasim Industries Ltd
Grasim Industries (ticker: GRASIM) is a textile manufacturer and a subsidiary of the Aditya Birla Group. GRASIM has rallied by more than 120% over the past year and 99% since the start of 2021.
- Stock: Grasim Industries Ltd
- Ticker: GRASIM
- YTD: 99.01% (₹924.15)
- 1-year growth: 120.78% (₹1,016.20)
Grasim posted a rise in consolidated revenue for Q1 FY22, up by 53% year on year to ₹19,919 crores. Consolidated Profit After Tax (PAT) surged by 6 times year on year.
5. Hindalco Industries Ltd
Hindalco Industries (ticker: HINDALCO) is one of the biggest players in the aluminium and copper industry. It is also a subsidiary of the Aditya Birla Group. HINDALCO has gained more than 96% since January 2021.
- Stock: Hindalco Industries Ltd
- Ticker: HINDALCO
- YTD: 96.39% (₹229.75)
- 1-year growth:122.32% (₹257.55)
Hindalco Industries hit a few all-time highs in Q1 FY22, which includes its highest consolidated EBITDA of ₹6,790 crores, up by 188% year on year and PAT of ₹2,787 crores, up by 493% year on year.
6. State Bank of India (SBI)
State Bank of India (ticker: SBIN) is the biggest bank in India by assets. SBIN shares have gained more than 82% since the start of the year. SBI posted its highest quarterly net profit in Q2 FY22 of ₹7,627 crores.
- Stock: State Bank of India
- Ticker: SBIN
- YTD: 82.87% (₹231.55)
- 1-year growth: 122.68% (₹281.50)
Apart from the 66.73% year on year increase in quarterly net profit, SBI’s operating profit grew by 9.84% year on year to ₹18,079 crores in Q2FY22, making it one of the best Nifty 50 stocks for the long term.
7. JSW Steel
Jindal Steel Works Steel Ltd (ticker: JSWSTEEL) is a steel manufacturing conglomerate that operates in more than 100 countries. JSWSTEEL shares have gained more than 70% in value since the start of the year.
- Stock: Jindal Steel Works
- Ticker: JSWSTEEL
- 1-year growth: 95.64% (₹328.25)
- YTD: 72.30% (₹281.75)
Q2 FY22 was broadly solid for JSW Steel as it posted its highest ever quarterly revenue from operations of ₹32,503 crores and quarterly net profit of ₹7,179 crores.
8. Oil & Natural Gas Corporation (ONGC)
Oil & Natural Gas Corporation (ticker: ONGC)is a government-backed company whose shares have gained more than 60% since the start of 2021 and more than 110% over the past year.
- Stock: Oil & Natural Gas Corporation
- Ticker: ONGC
- YTD: 66.09% (₹61.60)
- 1-year growth: 114.55% (₹82.65)
ONGC’s PAT for Q1 FY22 was ₹4,334.75 crores compared to ₹496.58 crores in the same quarter of the previous year. However, PAT was lower than it was in Q4 FY21 (₹6,733.97 crores).
ONGC features on the list of biggest IPOs in India. Read about it here.
How To Invest In Nifty 50 For The Long Term?
While Nifty 50 is one of the most solid indices in India, it is not averse to fluctuations and volatility. That’s why you’ll have to understand if you should be investing in direct stocks in the first place.
Figuring out your risk profile is one of the easiest ways to know more. Once that’s done, you can either pick the stocks from Nifty 50 that suit your investment goals or consult a reliable advisor for help.
Broadly speaking, you can use a trusted brokerage platform to invest in Nifty 50 stocks. You’ll have to download the app and complete the KYC process before you can buy the best Nifty 50 stocks for the long term.
If this seems like too much of a hassle, there’s an alternative known as index funds that invest in all the stocks present in the index they track. In this instance, you’d have to invest in a Nifty 50 index fund.
Which Share Is The Best In Nifty 50?
Reliance Industries stock (ticker: RELIANCE) is the largest stock in India and the Nifty 50 index in terms of market cap. Tata Motors stock (ticker: TATAMOTORS), on the other hand, is the the top performing stock from the Nifty 50 index, with more than 170% gains since the start of 2021.
What are the best performing stocks in India's Nifty 50 index?
Nifty 50 tracks fifty of the biggest stocks in India by weighted market cap. Shares of companies like Tata Motors, Tata Steel, Bajaj Finserv, Grasim Industries, Hindalco Industries, SBI, JSW Steel, ONGC, and others have gained between 65% to 172% ever since 2021 began.
Note: Period taken for YTD starts from January 1st 2021 to the date of publishing this blog. Facts & figures are true as of 12-11-2021. The funds mentioned are suggestions based on funds handpicked by Cube's expert Mutual Fund Advisory partner. Before investing please take Cube's Portfolio Planner feature to ensure the funds you see are right for your goals, life stage, risk level and finances. None of the information shared here is to be construed as investment advice.