Up to 430% jump in 1 year! These new-age companies are knocking on Nifty's doors

ICICI Securities believes that new-age firms from insurance, green energy and internet space may get a place in Nifty50 index in the near term.

However, the brokerage house sees Tata Consumer replacing GAIL in the upcoming semi-annual Nifty50 reshuffle on March 29. Shares of Tata Consumer Products have gained 64% to Rs 623.30 on February 15 from Rs 381.05 on February 17. Likewise, GAIL (India) gained 13% to Rs 133.80 from Rs 118.05 during the same period.

Commenting on new-age stocks and likely inclusion of Tata Consumer in the benchmark equity index, ICICI Securities in a report said, “Stocks from insurance, green energy and internet space are the next candidates and reflects improving demand for such businesses in the economy.”

Shares of Adani Green Energy have advanced 431% to Rs 1,054.70 on February 15 from Rs 198.45 on February 17 last year. ICICI Lombard and Info Edge have also gained 12% and 96%, respectively, during the past one year.

ICICI Securities further added that the higher presence of consumption (staples, discretionary, and auto) as a theme within the Nifty index is understated due to the presence of large consumer business within a large conglomerate.

“Avenue Supermarts has not been able to make an entry into the Nifty50 index due to it not being part of F&O list, despite higher free-float market cap than Tata Consumer,” it said.

Shares of Avenue Supermarts have gained 30% to Rs 3,043.50 in the past one year.