Benchmark Indices NIFTY50 and SENSEX plunged more than 5% last month amid uncertain geopolitical situations and FPI’s record-breaking outflow. However, indices jumped on Wednesday after Republican candidate Donald Trump won the U.S. president election.
The former president's win in the 2024 elections reduced political uncertainty, providing global markets with a relief rally. However, with an overhang of one event out of the way, investors await the U.S. Federal Reserve's rate decision to gauge the interest rate trajectory.
NIFTY50 has gained 24.50%, and SENSEX has surged 22.15% in the last 12 months. The NSE's thematic indices have shown impressive performance in the same period. The thematic indices are the NSE indices that exhibit the performance of companies that belong to specific investment themes such as social, economic, digital, or more.
Let’s analyse the annual performance of all 17 thematic indices:
Nifty India Defence index tracks the performance of a portfolio of stocks that broadly represent the Defence theme. The index emerged as the top gainer logging gains of 99.72% in the last one year. The key attribute for the robust performance of this thematic index was the sector's ₹3 trillion production target by FY2029 and a projected $138 billion investment pipeline over FY24 to FY32. Additionally, the government has set a defence export target of ₹50,000 crore by FY29.
The companies here have a strong order book. Also, since 2018, the revenue of the companies in the sector has grown by 9%, and profit has expanded by 20%.
Nifty PSE index comprises companies in which the government holds 51% of outstanding share capital. The index has surged 73.88% in a year, becoming the second-best-performing thematic index. Public Sector Undertakings (PSUs) have seen significant growth driven by strong order inflows, highlighting the government's focus on programs like Atmanirbhar Bharat and Make in India.
Nifty CPSE index is constructed to facilitate the Government of India’s initiative to disinvest some of its stake in selected CPSEs.The index has gained 73.13% in the last year.
Nifty Mobility index has given returns of 53.19% in a year. The index constituents are from the automotive and ancillary industries in India.
Nifty India Manufacturing index has logged 51.38% gains in a year. Currently, the sector contributes around 17% to the GDP, and this will continue to grow as it is one of the pillars of the economy’s growth.
The Nifty Transportation and Logistics index has gained 50.86% in the last year. According to the Economic Survey 2024, India's World Bank Logistics Performance Index (LPI) rank jumped in 2024. India’s ranking in the International Shipments category improved to 22nd in 2023 from 44th in 2014.
Recently launched, Nifty EV & New Age Automotive has surged 50.16% last year. The index tracks the performance of companies involved in the electric vehicle (EV) and new-age automotive sector, including hybrid and hydrogen fuel-based vehicles. The Indian EV sector is facing rapid growth due to government incentives, rising environmental concerns, and technological advancements.
Nifty Energy index has logged 46.07% returns in the last year. A significant factor driving the growth was increased infrastructure budget allocations, particularly in the energy sector, which has seen substantial investments in power distribution, transmission, and renewable energy projects.
Nifty India Digital Index tracks a portfolio of stocks representing the Digital theme. It has gained 43.97% in a year.
Nifty Infrastructure has given 42.8% returns in the last year. Under Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to ₹11.11 lakh crore. With a focus on enhancing connectivity, improving urban infrastructure, and boosting the overall quality of life, the sector has received substantial attention and investment from the government and private players.
Nifty Commodities index reflects the behaviour and performance of a diversified portfolio of companies representing the commodities segment, which includes sectors such as Oil, Petroleum Products, Cement, Power, Chemicals, Sugar, Metals, Mining, etc. It has gained 42.17% in the last year.
Nifty India Consumption index has surged 37.46% in the last year, while the Nifty India Tourism index has generated 35.74% returns in a year.
Nifty Housing and Nifty Core Housing indices jumped 35.29% and 33.84%, respectively, outperforming India's frontline indices.
Nifty MNC index comprises 30 listed companies on the National Stock Exchange (NSE), with a foreign promoter shareholding of over 50%. The index has gained 35.27% in a year.
Nifty Services Sector has gained 31.43% in the last year. It includes companies representing sectors such as Computers, Software, IT Education and Training, Banks, Telecommunication services, Financial Institutions, Power, Media, couriers, Shipping, etc.
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