The Nifty Energy index gave a return of 58.57% in the last year. In the same time period, NSE’s benchmark index (Nifty 50) gave a return of 14.62%. The Nifty Energy Index was one of the top-performing indices in the last year, as compared to other sectoral indices.
Energy stocks like Reliance Industries and Adani Green Energy reached their 52-week highs recently. Energy stocks, in general, are soaring. The ongoing Russia Ukraine conflict has led to a shortage in the supply of coal and the prices are high.
“This shortage of coal and high prices are benefiting the Coal India stock prices. Analysing the recent volume price action, the volumes have been encouraging in the recent up move indicating strong hands have started accumulating the stock at current levels and may touch the levels of 230 in near future,” said Ravi Singh Vice President and Head of Research at Share India.
Let’s know a little bit more about the Nifty Energy Index which mainly includes companies from the petroleum, gas and power sectors that are listed on the National Stock Exchange.
This index is currently made up of ten companies/ constituents in the energy sector. These are the constituents, with effect from March 31, 2022.
| Company | Weight (%) | Returns (%) (1-year returns) |
| Reliance Industries Ltd | 33.36 | 38.99 |
| Power Grid Corporation of India Ltd. | 10.68 | 38.67 |
| Adani Green Energy Ltd. | 9.50 | 168.83 |
| Adani Transmission Ltd. | 9.39 | 157.44 |
| NTPC Ltd | 9.25 | 50.39 |
| Oil & Natural Gas Corporation Ltd. | 8.62 | 58.23 |
| Tata Power Co. Ltd. | 5.83 | 152.83 |
| Bharat Petroleum Corporation Ltd. | 4.94 | -12.25 |
| Indian Oil Corporation Ltd. | 4.36 | 42.28 |
| GAIL (India) Ltd. | 4.08 | 16.54 |
The index is re-balanced on a semi-annual basis, in January and July. When changes are about to happen in the index, market participants are informed four weeks in advance, from the date of the change.
The Nifty Energy Index has performed better than many of the other sectoral indices except the Nifty Media Index and the Nifty Metal Index. Let’s take a look at the returns that it has provided:
The Nifty Energy Index has given 24.85% returns as per year to date data. In the last five years, the index has given 132.62% returns. Please note that these are price returns, which means that they do not include dividends, interest, rights offerings and other distributions realized over a given period of time. When we take total returns into consideration, the returns given by the index will be even higher.
On the other hand, the returns by other popular sectoral indexes are NIFTY IT (14.62%), NIFTY Pharma (0.79%), Nifty Auto (13.04%), Bank Nifty (6.84%), and Nifty Metal (36.09%).
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
