Nifty200 Alpha 30 – Nifty200 Alpha 30 Index

The Nifty200 Alpha 30 is an index that tracks the performance of 30 stocks from the Nifty 200 with the highest alpha, a measure of a stock’s outperformance relative to the market. It focuses on companies expected to deliver better returns compared to their risk, emphasising active investment strategies.

The table below shows the Nifty200 alpha 30 index based on the highest market capitalisation and 1-year return.

Introduction To Nifty200 Alpha 30 Stocks

Bharti Airtel Ltd

The Market Cap of Bharti Airtel Ltd is Rs. 1,019,229.24 crores. The stock’s monthly return is 7.88%. Its one-year return is 80.85%. The stock is 6.31% away from its 52-week high.

Bharti Airtel Limited is an international telecommunications company that operates in five key sectors: Mobile Services, Homes Services, Digital TV Services, Airtel Business, and South Asia. In India, the Mobile Services segment offers voice and data telecommunications using 2G, 3G, and 4G technologies. 

Homes Services provides fixed-line phone and broadband services in 1,225 cities across India. The Digital TV Services segment includes standard and HD digital TV services with 3D features and Dolby surround sound, offering a total of 706 channels, including 86 HD channels, 4 international channels, and 4 interactive services.  

NTPC Ltd

The Market Cap of NTPC Ltd is Rs. 427,489.08 crores. The stock’s monthly return is 7.24%. Its one-year return is 80.49%. The stock is 3.01% away from its 52-week high.

NTPC Limited is an India-based company that specializes in power generation. The company’s main focus is on producing and selling large quantities of power to State Power Utilities. NTPC operates in two main segments: Generation and Others. 

The Generation segment is responsible for producing and selling power to state power utilities, while the Other segment provides services such as consultancy, project management, energy trading, and more. NTPC owns and operates a total of 89 power stations in different Indian states, either on its own or through joint ventures and subsidiaries.  

Tata Motors Ltd

The Market Cap of Tata Motors Ltd is Rs. 355,278.94 crores. The stock’s monthly return is -11.96%. Its one-year return is 49.20%. The stock is 27.36% away from its 52-week high.

Tata Motors Limited is a worldwide car manufacturer with a broad product lineup that includes cars, SUVs, trucks, buses, and military vehicles. The company is divided into segments focusing on automotive operations and other activities. 

Within the automotive segment, there are four sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover, and Vehicle Financing. The company’s other operations involve IT services, machine tools, and factory automation solutions.

Bajaj Auto Ltd

The Market Cap of Bajaj Auto Ltd is Rs. 340,093.81 crores. The stock’s monthly return is 9.88%. Its one-year return is 135.35%. The stock is 8.20% away from its 52-week high.

Bajaj Auto Limited, an India-based company, specializes in the manufacturing of two-wheelers, three-wheelers, and quadricycles. The company is involved in the development, production, and distribution of various automobiles, including motorcycles, commercial vehicles, electric two-wheelers, and components. 

It operates in segments such as Automotive, Investments, and Others. The motorcycle lineup comprises models such as Boxer, CT, Platina, Discover, Pulsar, Avenger, KTM, Dominar, Husqvarna, and Chetak. The commercial vehicle range includes Passenger Carriers, Good Carriers, and Quadricycles.  

Coal India Ltd

The Market Cap of Coal India Ltd is Rs. 313,917.26 crores. The stock’s monthly return is -2.60%. Its one-year return is 72.10%. The stock is currently 8.20% away from its 52-week high.

Coal India Ltd., an Indian coal mining company, operates in 83 mining areas across eight states in India through its subsidiaries. The company oversees a total of 322 mines, comprising 138 underground, 171 opencast, and 13 mixed mines, as well as various facilities like workshops and hospitals. 

Additionally, Coal India Ltd. has 21 training Institutes and 76 Vocational Training Centers. The company also runs the Indian Institute of Coal Management (IICM), a corporate training institute offering multi-disciplinary programs. 

Hindustan Aeronautics Ltd

The Market Cap of Hindustan Aeronautics Ltd is Rs. 296,006.50 crores. The stock’s monthly return is -9.35%. Its one-year return is 118.06%. The stock is 32.98% away from its 52-week high.

Hindustan Aeronautics Limited, an India-based company, is involved in various activities such as designing, developing, manufacturing, repairing, overhauling, upgrading, and servicing a wide array of products including aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures. 

Avionics products offered by the company encompass inertial navigation systems, auto stabilizers, head-up displays, laser range systems, flight data recorders, communication equipment, radio navigation equipment, onboard secondary radars, missile inertial navigation, radar computers, and ground radar systems.  

Trent Ltd

The Market Cap of Trent Ltd is Rs. 271,090.45 crores. The stock’s monthly return is 6.08%. Its one-year return is 263.65%. The stock is 6.04% away from its 52-week high.

Trent Limited, a company based in India, specializes in retailing and trading a variety of merchandise such as apparel, footwear, accessories, toys, and games. The company operates under various retail formats like Westside, Zudio, Utsa, StarHypermarket, Landmark, Misbu/Xcite, Booker Wholesale, and ZARA.  

Westside, the flagship format, offers a wide range of apparel, footwear, and accessories for men, women, and children, as well as furnishings and home accessories. Landmark, the family entertainment format, provides toys, books, and sports merchandise. Zudio, the value retail format, focuses on apparel and footwear for all family members.  

Siemens Ltd

The Market Cap of Siemens Ltd is Rs. 267,969.97 crores. The stock’s monthly return is 10.45%. Its one-year return is 110.43%. The stock is 6.08% away from its 52-week high.

Siemens Limited is a technology company with various segments including Digital Industries, Smart Infrastructure, Mobility, Energy, and others. The Digital Industries segment offers automation, drives, and software technologies that cover the entire product lifecycle for discrete and process industries. 

Smart Infrastructure provides products and services for electrical energy transmission and distribution for power utilities and industrial companies. The Mobility segment supplies transportation solutions such as rail vehicles and automation systems for both passengers and freight. 

Indian Oil Corporation Ltd

The Market Cap of Indian Oil Corporation Ltd is Rs. 253,292.65 crores. The stock’s monthly return is 0.20%. Its one-year return is 90.37%. The stock is 14.87% away from its 52-week high.

Indian Oil Corporation Limited is an oil company based in India that operates in various segments including Petroleum Products, Petrochemicals, and Other Business Activities. The Other Business Activities segment encompasses gas, oil and gas exploration, explosives, and cryogenic business, as well as windmill and solar power generation. 

The company is involved in the entire hydrocarbon value chain, from refining and pipeline transportation to marketing, exploration, production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources, and global downstream operations. It has a wide network of fuel stations, storage terminals, depots, aviation fuel stations, LPG bottling plants, and lube blending plants.  

Bharat Electronics Ltd

The Market Cap of Bharat Electronics Ltd is Rs. 207,920.51 crores. The stock’s monthly return is -5.13%. Its one-year return is 100.22%. The stock is 22.17% away from its 52-week high.

Bharat Electronics Limited, headquartered in India, specializes in manufacturing and supplying electronic equipment and systems for both defense and non-defense markets. The company’s defense product range includes navigation systems, communication products, radars, naval systems, electronic warfare systems, avionics, electro-optics, tank and armored fighting vehicle electronic systems, weapon systems, simulators, and more. 

In the non-defense sector, the company offers products and services such as cyber security, e-mobility, railway systems, e-governance systems, homeland security, civilian radars, turnkey projects, components/devices, and telecom and broadcast systems.  

What is the Nifty200 Alpha 30 Index?

The Nifty200 Alpha 30 Index is a benchmark designed to identify and represent the top-performing companies within the Nifty 200 framework, focusing on those that exhibit robust momentum and strong growth potential. This index serves as a valuable tool for investors seeking to track high-performing equities.  

Comprising 30 selected stocks, the Nifty200 Alpha 30 Index aims to reflect the dynamic nature of the Indian equity market. By concentrating on companies that demonstrate superior alpha generation, it enables investors to capture significant market upside while managing risk more effectively.

Nifty200 Alpha 30 Weightage

The table below shows the nifty200 alpha 30 weightage.

Best Nifty200 Alpha 30 Stocks Based On 1M Return

The table below shows the best nifty200 alpha 30 stocks based on a 1-month return.

Nifty200 Alpha 30 Stocks List Based On Dividend Yield

The table below shows the nifty200 alpha 30 stocks list based on dividend yield.

How is the Nifty200 Alpha 30 Index Value Calculated?

The Nifty200 Alpha 30 Index Value is determined using a specific methodology that assesses the performance of the top 30 stocks exhibiting the highest expected returns within the broader Nifty200 index. 

This selection emphasizes companies with strong potential for outperformance.  To calculate the index value, these stocks are evaluated based on various financial metrics and quantitative models, including price momentum, earnings growth, and relative strength. The resulting index reflects the performance of these high-alpha stocks, providing investors with insights into potential investment opportunities.

How Stocks Are Selected for the Nifty200 Alpha 30 Index?

The Nifty200 Alpha 30 Index comprises stocks chosen based on specific criteria that assess their potential for higher returns. This selection process involves analyzing various financial metrics, market capitalization, and historical performance to identify the best-performing stocks.  To ensure the stocks meet the desired performance standards, the index focuses on companies that exhibit strong alpha generation capabilities. The methodology emphasizes factors like profitability, growth potential, and market dynamics, enabling the index to consistently represent high-quality investment opportunities.

History of the Nifty200 Alpha 30

The Nifty200 Alpha 30 index was launched by the National Stock Exchange (NSE) of India in 2017. It was created to offer investors a way to track stocks within the Nifty 200 that demonstrated strong outperformance compared to the market.

The index aims to provide a focused view of companies with a high alpha, indicating their potential for better risk-adjusted returns. It selects the top 30 stocks based on historical performance, aiding investors in identifying stocks with consistent market-beating trends.

Key Factors of Nifty200 Alpha 30 Index Performance

The factor to consider for the performance of the Nifty200 Alpha 30 Index is its focus on stocks with high alpha, emphasizing companies that consistently outperform the broader market, leading to potentially superior risk-adjusted returns.

1. Stock Selection Methodology: The index employs a systematic approach, selecting stocks from the Nifty 200 with the highest alpha values, ensuring a focus on those with a proven track record of market outperformance.
2. Weight Allocation Strategy: Stocks in the Nifty200 Alpha 30 are weighted based on their alpha scores, allowing higher exposure to stocks with the greatest potential to deliver superior returns relative to the market benchmark.
3. Periodic Review and Rebalancing: The index undergoes periodic reviews and rebalancing to maintain its focus on high-performing stocks, adapting to market conditions and ensuring only the most promising companies are included.
4. Sector Diversification: The Nifty200 Alpha 30 Index provides a balanced sectoral representation, reducing the risk of over-reliance on any single industry, and ensuring a more diversified investment approach to mitigate sector-specific risks.
5. Market Trends and Economic Indicators: The index’s performance is influenced by prevailing market trends and economic indicators, as stocks with high alpha typically respond more dynamically to changes in economic conditions, interest rates, and investor sentiment.

Benefits of Investing in the Nifty200 Alpha 30

The primary benefits of investing in the Nifty200 Alpha 30 include its emphasis on stocks with strong potential to outperform the market, making it a strategic option for investors seeking higher risk-adjusted returns over time.

1. Focused Growth Opportunities: Investing in the Nifty200 Alpha 30 provides exposure to high-growth stocks that have consistently delivered better returns, increasing the chances of capital appreciation in comparison to broader market indices.
2. Risk-Adjusted Performance: The index’s focus on alpha ensures that investments are directed towards stocks with superior risk management, aiming for a balance between maximizing returns and minimizing potential downside risk.
3. Efficient Portfolio Diversification: It offers a diversified portfolio by including stocks from various sectors, reducing the impact of poor performance in any single sector, and enhancing overall portfolio stability.
4. Active Investment Strategy: The selection process of the Nifty200 Alpha 30 is rooted in active investment principles, helping investors leverage market opportunities by focusing on outperforming stocks rather than just market averages.
5. Regular Rebalancing Advantage: Regular rebalancing of the index keeps the portfolio updated with the latest high-alpha stocks, allowing investors to continually capitalize on the best-performing companies in the market.

Risks of Investing in the Nifty200 Alpha 30 Stocks

The main risk of investing in the Nifty200 Alpha 30 stocks is its focus on high-alpha stocks, which can lead to greater volatility and fluctuations compared to broader market indices, potentially impacting short-term investment stability.

1. Higher Volatility: Stocks selected for their high alpha can exhibit significant price swings, making them more susceptible to market fluctuations and increasing the risk of sudden losses during market downturns or economic instability.
2. Concentration Risk: The focus on a limited number of stocks increases concentration risk. Poor performance by a few selected companies can disproportionately affect the entire index, leading to potential portfolio underperformance.
3. Economic Sensitivity: High-alpha stocks often react strongly to economic changes, including interest rate shifts or inflation trends, which can impact their performance more intensely than diversified, lower-risk investments.
4. Limited Sector Coverage: Despite some diversification, the Nifty200 Alpha 30 might have limited exposure to certain sectors. Overweighting in specific industries can heighten vulnerability to sector-specific challenges and market trends.
5. Frequent Rebalancing: Regular rebalancing to maintain high-alpha stocks might lead to increased transaction costs and potential tax implications, reducing overall returns for investors due to higher expenses associated with these adjustments.

How To Invest in Nifty200 Alpha 30 Stocks?

Investing in Nifty200 Alpha 30 stocks involves researching and selecting high-performing companies within the index. Start by evaluating their financial health, market position, and growth potential. Use online platforms like Alice Blue to facilitate your investments. They provide tools for tracking stocks and market trends. Additionally, consider diversifying your portfolio to mitigate risks. By staying informed and making calculated decisions, you can enhance your investment strategy in these top-performing stocks. 

What Are The Tax Implications Of Investing In Nifty200 Alpha 30 Index?

Investing in the Nifty200 Alpha 30 Index involves tax implications like any other equity investment in India. Short-term capital gains (STCG) are taxed at 15% if the holding period is less than one year.

Long-term capital gains (LTCG) are taxed at 10% if the gains exceed INR 1 lakh and the holding period is more than one year. These tax rates may impact the net returns, depending on the investment duration.

Future of Nifty200 Alpha 30

The Nifty200 Alpha 30 index is designed to track the performance of high-quality, growth-oriented companies listed on the National Stock Exchange. By focusing on stocks with strong potential for alpha generation, it aims to deliver superior returns over time compared to broader market indices.  Investors looking to capitalize on market opportunities may find the Nifty200 Alpha 30 a valuable addition to their portfolio. This index emphasizes firms with robust fundamentals, enhancing the likelihood of consistent performance in a dynamic economic environment while effectively managing investment risks.

FAQs – Nifty200 Alpha 30 Stocks

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.