Nifty Internet index outperforms peers with 19% returns since Feb launch. Is the dotcom boom here to stay?
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Index composition & key stocks
Sector leaders
Tired of too many ads?
Remove Ads
Internet Duds
Outlook
Launched on February 28 this year, the Nifty India Internet Index , designed to track the performance of India's burgeoning new-age stocks , has already delivered impressive returns. It has outpaced the broader Nifty 50, clocking a 19% gain since inception, compared to 12% by the latter. However, it still trails many of its more established sectoral peers.The Nifty India Internet Index became operational on March 3, and the 19.4% return is calculated based on the closing level of 1,109 on that day. During this period, the 21-stock index has outperformed several key sectoral indices, including Nifty Bank, Nifty Financial Services, Nifty Private Bank, Nifty Auto, Nifty Commodities, Nifty India Tourism, Nifty India Consumption, Nifty Metal, Nifty Healthcare, Nifty Pharma, Nifty FMCG, and Nifty IT, which delivered returns ranging from 2% to 17%.However, it lagged behind six sectors: Nifty India Defence (69%), Nifty Realty (26%), Nifty Media (24%), Nifty PSU Bank (24%), Nifty Oil & Gas (20%), and Nifty Energy (20%)."The index has delivered strong returns since its launch, outperforming broader markets and most sectoral peers. This outperformance highlights growing investor confidence in digital-first business models and the structural shift toward online platforms in both consumption and financial services. Given the sector's growth potential and supportive macro trends, it presents a credible thematic investment opportunity," Anil Rego, Founder & Fund Manager of Right Horizons PMS.The Nifty India Internet Index is a diverse basket of 21 stocks primarily from the consumer services (63.10%), financial services (35.37%), and media, entertainment & publication (1.53%) sectors. Leading the pack in terms of weightage is Eternal (erstwhile Zomato), holding the largest share at 20.27%. It's followed closely by PB Fintech (Policybazaar) at 16.48% and Info Edge (India) at 15.66%.Other significant constituents with weights between 8.57% and 2.01% include One 97 Communications (Paytm), FSN E-Commerce Ventures (Nykaa), Indian Railway Catering and Tourism Corporation (IRCTC), Angel One, Swiggy, Motilal Oswal Financial Services (MOFSL), and Indiamart Intermesh.The total weight of these 10 stocks stands at 83.69%.The other 11 stocks viz. RattanIndia Enterprises, IIFL Capital Services, Le Travenues Technology, Nazara Technologies, Thomas Cook (India), Infibeam Avenues, TBO Tek, CarTrade Tech, Just Dial, Brainbees Solutions, and Easy Trip Planners together carry a weight of 16.31%.Out of the 21 stocks in the index, a dozen counters have outperformed the index while 14 have surpassed the returns given by Nifty50.RattanIndia Enterprises and IIFL Capital Services were the top gainers, both surging nearly 60%. This impressive run came despite RattanIndia reporting widened losses and IIFL Capital Services seeing declining earnings, suggesting that market sentiment or future growth prospects played a significant role.Broking majors Motilal Oswal and Angel One also saw substantial increases, each up over 40%, even as they navigated challenges with significant profit and revenue declines.However, the true earnings winners among the top performers were the consumer-facing digital disruptors.Le Travenues Technology (ixigo), the ticketing platform operator, surged 40%, backed by a robust 92.5% jump in net profit and over 72% revenue growth in Q4 FY25. Meanwhile, Policybazaar stock soared 29% on the back of a remarkable 181% earnings jump and 39% sales growth.Beauty & personal care player Nykaa posted a 95% profit after tax (PAT) jump, contributing to its nearly 25% stock gain.Info Edge, which operates 'Naukri', rallied 8% during the period, driven by a whopping 570% year-on-year rise in PAT in Q4 FY25, alongside 14% bottom-line growth.Gaming and content platform Nazara Technologies rose 40% with a 95% jump in revenue, while IRCTC, a more traditional online player, posted modest 17% gains, with PAT and revenue growth of 26% and 10%, respectively, in the January–March quarter.Despite the overall positive trend, some digital players experienced a downturn. For instance, travel platform EaseMyTrip shares slipped nearly 6%, struggling with both falling sales and profits. Others like Swiggy and Brainbees Solutions (FirstCry) also saw their stocks underperform despite reporting strong revenue growth, as they were weighed down by deepening losses.Rego warns against any focused strategy on internet stocks, arguing that it carries concentration risk. He suggests investors evaluate their exposure based on individual risk tolerance and investment objectives.Rego said that the recent performance trends in consumer and financial sectors provide important cues for their near-term outlook."Within consumer discretionary, categories like hotels, value retail, and jewellery are expected to maintain growth momentum, supported by domestic demand, store expansion, and favourable pricing dynamics. Meanwhile, premium retail, QSRs, footwear, and textiles may see a gradual recovery as inflation stabilizes and discretionary spending improves," the analyst said.Meanwhile, financial services are likely to continue their earnings growth trend, driven by strong credit demand, he opined."Given this Q4 backdrop and the index composition, the Nifty India Internet Index could serve as a thematic proxy for both consumer demand trends and the ongoing digital transformation in financial services," he added.The RBI's continued accommodative stance and the government's tax relief measures in the February 2025 Budget are expected to improve liquidity and increase disposable income.This rise in income is expected to stimulate consumer spending, particularly in digitally enabled services, Rego said. The Nifty India Internet Index, which comprises companies that operate primarily through online platforms such as e-commerce, digital payments, and internet-based services, stands to gain from this shift, the Right Horizons PMS founder added.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
3 hours ago
- Mint
Stocks to buy for short term: Ajit Mishra of Religare Broking recommends buying these 3 shares for next 1-2 weeks
Stocks to buy for the short term: The Indian stock market benchmark Nifty 50 gained over 1 per cent for the week ended August 14, snapping its six-week losing streak. Shares of Apollo Hospitals, Eternal, Dr Reddy's Laboratories, and Cipla were among the top gainers. The index reclaimed the 24,600 mark, closing at 24,631 in the previous session, as sentiment improved after India's CPI inflation fell to an eight-year low of 1.55 per cent in July. However, Trump's tariffs and weak earnings remain key headwinds for the market, keeping the near-term outlook uncertain. According to Ajit Mishra, SVP of research at Religare Broking, the prevailing consolidation suggests that markets have largely digested recent negatives and are now awaiting a recovery trigger. Oversold positions in heavyweights across sectors are further supporting this possibility, Mishra added. He believes a decisive break above 24,800 on the Nifty could spark fresh momentum towards the 25,000-25250 zone; otherwise, consolidation may persist with major support at 200 DEMA, i.e. 24,200. "Participants should maintain a stock-specific trading approach with a focus on risk management," said Mishra. Highlighting a favourable technical setup, Mishra suggests buying the following three stocks for the next one to two weeks. Mishra pointed out that Maruti is forming a broad symmetrical triangle, marked as a 'continuation pattern,' following a strong prior uptrend. The stock has been coiling within converging trendlines for over a year, with the 20-week EMA acting as a dynamic support. The recent breakout attempt toward the upper boundary, coupled with increasing volume, suggests growing bullish momentum. "A sustained close above ₹ 13,000 could lead to a decisive breakout, with potential targets around ₹ 13,800– ₹ 14,000. The tightening range reflects a buildup of energy, which often results in a strong directional move. Overall, the pattern favours an upside move, given the preceding trend and supportive volume action," said Mishra. Maruti technical chart Mishra underscored that Hindalco is displaying a breakout setup from a prolonged corrective phase, with a defined 'buying pivot' near ₹ 665. The price has decisively crossed above its 20-week EMA, confirming short-term bullish momentum. The breakout candle's body is healthy, and follow-through buying is seen in subsequent candles, suggesting strength. "Key resistance now lies near ₹ 720, while immediate support rests at ₹ 665. Sustaining above the buying pivot can lead to a continuation toward previous swing highs, with ₹ 750– ₹ 760 as an extended target zone. Any dip toward the pivot with low volume could present an attractive accumulation opportunity," said Mishra. Hindalco technical chart According to Mishra, the L&T chart is in a clear long-term uptrend, supported by a firmly rising 200-week EMA. After a strong multi-year rally, the stock entered a broad consolidation between ₹ 3,000 and ₹ 3,850, forming a 'trend continuation formation.' The recent price action shows a rebound from the lower end of this range with improving volumes, signalling renewed buying interest. "A breakout above the previous swing high, i.e. ₹ 730 on strong volumes, could trigger the next leg of the uptrend, potentially targeting the retest of the record high and beyond," said Mishra. "The sideways consolidation has allowed the stock to digest earlier gains, setting a solid base for further upside. Support is well-defined near ₹ 3,570-3,600, and as long as these levels hold, the broader bullish structure remains intact," said Mishra. Larsen and Toubro technical chart Read all market-related news here Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Mint
5 hours ago
- Mint
Technical View: Nifty 50 likely to move towards 25,300-25,500 in the near term
Indian benchmark index Nifty 50 is likely to witness a near-term rebound, according to Axis Securities. For the second consecutive month, the index tested its prior supply zone of 25,600-25,700 levels; however, profit booking at elevated levels dragged it lower, resulting in a 2.9% loss. The index has lost half a percent in August so far, following a 3 percent decline in July. Before that, it was in the green for 4 straight months, up 3 percent in June, 1.7 percent in May, 3.5 percent in April, and 6.3 percent in March. Axis Securities highlighted that the index continues to move higher on a broader timeframe, forming a consistent series of higher tops and higher bottoms on the long-term chart. This suggests that minor corrections toward identified support zones offer investors a strategic opportunity for accumulation. Axis Securities advised investors that they should adopt a buy-on-dips approach, as short-term corrections provide attractive entry points. The short- to medium-term trend appears neutral to corrective, but Nifty's near-term upside could extend toward 25,300–25,500. At the same time, any violation of the 24,400 support level may lead to profit booking, potentially dragging the index down to 24,000–23,800, it predicted. Source: Axis Securities Axis Securities noted that the monthly price action formed a small bearish candle confined within the high-low range of the previous month, indicating a temporary lack of strong upward momentum. The index remains above its 200-day Simple Moving Average (SMA) at 24,042, reconfirming the primary uptrend. While the weekly and monthly Relative Strength Index (RSI) are in negative territory, signaling short-term loss of strength, Axis Securities emphasized that the long-term trend remains positive. Since June 2022, Nifty has consistently respected its upward-sloping channel support, underscoring the resilience of the current uptrend. Axis Securities explained that the 200-day SMA around 24,000 is a critical support level and a strategic accumulation zone. Currently, the index is trading near a multi-month support zone between 24,500 and 24,300, which serves as a crucial line of defense. A sustained breach below this zone could accelerate corrective momentum, potentially pushing Nifty toward the 24,000 psychological level. Despite this consolidation, the RSI holding above 50 indicates underlying strength, supporting positive momentum. Axis Securities recommends a selective, stock- and sector-specific strategy to capitalize on market opportunities. On the upside, Axis Securities stated that a sustained breakout above 25,000 could trigger a rally, with potential targets in the 25,300–25,500 range. Conversely, a decisive breach of the support zone at 24,400–24,300 may prompt profit booking, possibly driving the index toward 24,000–23,800. Axis Securities also observed that Nifty is in a corrective mode in the short term, reflected in a series of lower tops and bottoms, and continues to face resistance from its prior supply zone of 25,400–25,600. Nevertheless, the broader outlook remains bullish, with potential for sector rotation within the ongoing bull market. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
6 hours ago
- Mint
THESE 8 Nifty 500 stocks have doubled investors' money since last Independence Day; do you own any?
The past year has been challenging for Indian stock market investors, as weak earnings, stretched valuations, geopolitical instability, foreign capital outflow, and Trump's tariffs kept the domestic market under pressure. Since last Independence Day, the Nifty 50 has gained just 0.40 per cent, while the broader Nifty 500 index has declined 1.6 per cent over the same period. Stocks, such as Akums Drugs, Tejas Networks, Sterling and Wilson, Vodafone Idea, and Ola Electric have crashed between 50-60 per cent over the last year. However, despite the market downtrend and persistent headwinds, some 200-plus Nifty 500 stocks have delivered gains over the past year. Of these, nearly 150 have surged by at least 10 per cent. Some eight stocks have posted even stellar gains of over 100 per cent, doubling investors' wealth since last Independence Day. let's take a look: BSE stands as the top gainer in the Nifty 500 index, surging about 191 per cent over the last year. The BSE stock hit a 52-week low of ₹ 841.67 on August 14 last year and saw strong gains thereafter, rising to a 52-week high of ₹ 3,030 on June 10. The small-cap stock has surged 171 per cent since last Independence Day, hitting a 52-week high of ₹ 27,740 on April 21 this year. JSW Holdings hit a 52-week low of ₹ 6,455 on August 14 last year. Shares of Godfrey Phillips India have clocked a robust gain of 134 per cent over the last year. This small-cap stock rose to a 52-week high of ₹ 11,444 recently on August 7 after hitting a 52-week low of ₹ 4,112.45 on January 28 this year. Shares of Premier Energies debuted on the NSE and the BSE on September 3 last year. On August 14, 2025, the stock ended at ₹ 986.30. Hence, in less than a year, the stock has surged 119 per cent from its issue price of ₹ 450. The mid-cap stock surged to its record high of ₹ 1,388 on December 17 last year, but declined subsequently on profit booking. Premier Energies hit a record low of ₹ 774.05 on April 7 this year. Paytm has clocked a solid gain of 114 per cent over the last year despite market volatility. It scaled a fresh 52-week high of ₹ 1,187 on August 13 this year after falling to a 52-week low of ₹ 505.50 on August 14 last year. Small-cap stock Authum Investment has gained 108 per cent since last Independence Day. The stock hit a 52-week low of ₹ 1,325.50 on February 28 but rebounded sharply in the subsequent months, rising to a 52-week high of ₹ 2,999 on August 13 this year. With a gain of 104 per cent, JM Financial stands as one of the top gainers in the Nifty 500 index over the last year. It recently hit a 52-week high of ₹ 190 on August 13 after hitting a 52-week low of ₹ 80.20 on April 7 this year. Small-cap pharma stock Laurus Labs has jumped about 101 per cent in the last one year, hitting a 52-week high of ₹ 922.50 on July 30 this year after falling to a 52-week low of ₹ 417.70 on August 14 last year. Read all market-related news here Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
