Nifty 100 Alpha 30 – Nifty 100 Alpha 30 Index

The Nifty 100 Alpha 30 is an index that tracks the performance of 30 stocks from the Nifty 100 with the highest alpha. It focuses on selecting companies that consistently outperform the market, aiming to provide investors with superior risk-adjusted returns by emphasizing active investment strategies.

The table below shows the Nifty 100 alpha 30 index based on the highest market capitalisation and 1-year return.

Introduction To Nifty 100 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 currently 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. 

Sun Pharmaceutical Industries Ltd

The Market Cap of Sun Pharmaceutical Industries Ltd is Rs. 461,457.83 crores. The stock’s monthly return is 5.36%. Its one-year return is 67.41%. The stock is 2.59% away from its 52-week high.

Sun Pharmaceutical Industries Limited, an Indian-based pharmaceutical company specializing in generic medications, is involved in the manufacturing, development, and marketing of a diverse range of branded and generic pharmaceutical formulations and active ingredients. 

The company offers a broad portfolio of generic and specialty medicines tailored for various chronic and acute medical conditions. With a vertically integrated network, Sun Pharma is capable of producing a wide array of pharmaceutical products, including oncology drugs, hormones, peptides, and steroidal medications.  

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 currently 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. Geographically, the company operates in India and other regions worldwide. 

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 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.  

Adani Green Energy Ltd

The Market Cap of Adani Green Energy Ltd is Rs. 298,582.20 crores. The stock’s monthly return is -3.58%. Its one-year return is 85.62%. The stock is 20.26% away from its 52-week high.

Adani Green Energy Ltd. (AGEL), an Indian holding company, is involved in renewable energy generation and related activities. It specializes in developing, constructing, owning, operating, and maintaining large-scale solar power, wind power, hybrid projects, and solar parks that are connected to the grid. 

The company operates in various markets within India, spanning across approximately 91 locations in different states. AGEL’s power projects are primarily situated in Gujarat Punjab, Rajasthan, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. Its wind power plants are located in Madhya Pradesh and Gujarat.  

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%. Over the past year, it has achieved a return of 263.65%. Currently, the stock is 6.04% below 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.  

What is the Nifty 100 Alpha 30 Index?

The Nifty 100 Alpha 30 Index is a stock market index designed to track the performance of 30 stocks selected from the Nifty 100 Index. This index focuses on identifying stocks that have the potential to outperform the broader market, aiming for enhanced returns.  

By employing a quantitative approach, the Nifty 100 Alpha 30 Index utilizes factors such as price momentum and earnings growth to identify top-performing securities. Investors often use this index as a benchmark for evaluating investment performance and devising strategies for stock selection.

Nifty 100 Alpha 30 Weightage

The table below shows the Nifty 100 alpha 30 weightage.

Best Nifty 100 Alpha 30 Stocks Based On 1M Return

The table below shows the best nifty 100 alpha 30 stocks based on 1 month return.

Nifty 100 Alpha 30 Stocks List Based On Dividend Yield

The table below shows the nifty 100 alpha 30 stocks list based on dividend yield.

How is the Nifty 100 Alpha 30 Index Value Calculated?

The Nifty 100 Alpha 30 Index Value is determined by a sophisticated methodology that combines various factors, including stock performance and volatility. It evaluates the top 100 companies based on market capitalization and selects the highest alpha-generating stocks for the index.  

The calculation involves assessing the historical performance and risk-adjusted returns of individual stocks within the index. By focusing on companies that consistently deliver above-average returns relative to their risk, the Nifty 100 Alpha 30 aims to identify and track those with superior growth potential.

How Stocks Are Selected for the Nifty 100 Alpha 30 Index?

The selection process for stocks in the Nifty 100 Alpha 30 Index involves identifying the top-performing companies from the Nifty 100 Index based on their potential for superior returns. Each stock is evaluated on various metrics, including financial performance, market capitalization, and liquidity, ensuring that only the most promising stocks are included.  

Additionally, a systematic methodology is applied to assess and rank these companies. This involves analyzing quantitative indicators such as price momentum and earnings growth, allowing for a focus on the stocks that demonstrate the highest alpha potential. The aim is to create an index that reflects the best growth prospects in the market.

History of the Nifty 100 Alpha 30

The Nifty 100 Alpha 30 Index was introduced by NSE Indices Limited to track high-alpha stocks from the Nifty 100. Launched in 2017, its goal was to highlight companies with a proven track record of outperforming the broader market.

The index focuses on selecting the top 30 stocks within the Nifty 100 based on their alpha values, ensuring that investors have a reliable benchmark to identify stocks with superior risk-adjusted returns and market-beating performance trends.

Key Factors of Nifty 100 Alpha 30 Index Performance

The factor to consider for the performance of the Nifty 100 Alpha 30 Index is its emphasis on stocks with the highest alpha, focusing on companies that consistently outperform market benchmarks, leading to better risk-adjusted returns.

1. Stock Selection Criteria: The index prioritizes stocks from the Nifty 100 with the highest alpha values, emphasizing companies that demonstrate consistent outperformance, which enhances the potential for achieving superior returns compared to the broader market.
2. Dynamic Weight Allocation: The Nifty 100 Alpha 30 assigns weights to stocks based on their alpha scores, increasing exposure to those with higher potential, which drives the overall performance of the index more effectively.
3. Regular Rebalancing: Periodic reviews and rebalancing ensure that the index remains updated with top-performing stocks. This dynamic approach helps maintain a focus on the most promising investments in response to market changes.
4. Sector Diversification: The index’s composition includes stocks from various sectors, which reduces dependency on a single industry, minimizing risks associated with sector-specific downturns and promoting a balanced portfolio.
5. Economic Sensitivity: The performance of high-alpha stocks in the index is often sensitive to economic conditions, responding quickly to changes in interest rates, inflation, or market sentiment, impacting the index’s overall returns.

Benefits of Investing in the Nifty 100 Alpha 30

The primary benefits of investing in the Nifty 100 Alpha 30 include its focus on stocks with a history of outperforming the market, offering investors opportunities for higher returns through a concentrated and strategic investment approach.

1. Growth-Oriented Strategy: Investing in the Nifty 100 Alpha 30 provides exposure to companies that consistently deliver better-than-average returns, enhancing the potential for capital growth compared to investments in broader market indices.
2. Risk-Adjusted Returns: The index’s emphasis on high-alpha stocks offers superior risk-adjusted performance, aiming to maximize returns while managing the downside risks effectively, making it a suitable choice for growth-focused investors.
3. Diversification Across Sectors: The index comprises a mix of sectors, reducing dependency on any single industry. This diversification strategy helps mitigate sector-specific risks, promoting a more balanced and resilient investment portfolio.
4. Systematic Rebalancing: Regular rebalancing ensures the index remains aligned with the highest alpha stocks, keeping the portfolio fresh and responsive to market changes, which boosts the chances of sustained outperformance.
5. Active Investment Focus: The index’s focus on active investment principles allows investors to benefit from stock selections that aim to outperform passive strategies, increasing opportunities for higher gains in varying market conditions.

Risks of Investing in the Nifty 100 Alpha 30 Stocks

The main risk of investing in the Nifty 100 Alpha 30 stocks is their inherent volatility, as these high-alpha stocks can experience significant price swings, leading to potential short-term losses during unpredictable market conditions.

1. Concentration Risk: The index focuses on a limited number of high-alpha stocks, increasing the risk that poor performance by a few companies can negatively impact the overall portfolio’s returns more severely than a diversified index.
2. Economic Sensitivity: High-alpha stocks often react more sharply to economic changes, such as interest rate adjustments or economic slowdowns, which can significantly influence their market performance and increase the overall investment risk.
3. Sector-Specific Exposure: Despite diversification, the Nifty 100 Alpha 30 may have a higher exposure to certain sectors, making it vulnerable to industry-specific challenges that could impact returns if those sectors underperform.
4. Frequent Rebalancing Costs: Regular portfolio adjustments to maintain top-performing stocks can lead to increased transaction fees and potential tax liabilities, which may reduce the net returns for investors over time.
5. Market Sentiment Influence: The performance of high-alpha stocks can be highly sensitive to market sentiment and investor behavior, leading to increased volatility during periods of uncertainty or negative market trends, impacting overall stability.

How To Invest in Nifty 100 Alpha 30 Stocks?

Investing in Nifty 100 Alpha 30 stocks offers a strategic way to enhance your portfolio. Start by researching the top-performing stocks within the Nifty 100 Alpha 30 index. Utilize analytical tools to assess market trends and company fundamentals. Create an investment plan that aligns with your financial goals. You can open an account with Alice Blue, a reliable trading platform, to facilitate your investments.  

What Are The Tax Implications Of Investing In Nifty 100 Alpha 30 Index?

Investing in the Nifty 100 Alpha 30 Index involves standard tax implications for equity investments 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) on investments held for over a year are taxed at 10%, provided the gains exceed INR 1 lakh. These tax rates directly impact the overall returns, influencing the net profitability of investments.

Future of Nifty 100 Alpha 30

The Nifty 100 Alpha 30 has a promising outlook, as it represents a curated collection of high-performing stocks within the broader Nifty 100 index. This indicates a focus on companies expected to deliver superior returns, making it an attractive investment option.  Investors looking toward the Nifty 100 Alpha 30 can anticipate the potential for significant growth. Its strategic selection of stocks emphasizes both quality and performance, positioning it as a valuable asset in navigating evolving market conditions and achieving capital appreciation over time.

FAQs – Nifty 100 Alpha 30 Stocks

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.