Nifty 50 Underperformance: One-Fifth of Stocks See Flat to Negative Returns Over 3 Years

• One-fifth of Nifty 50 stocks delivered flat to negative returns on a three-year CAGR basis ending January 19.
• Key underperforming stocks include HDFC Bank, TCS, Infosys, Reliance Industries, ITC, and Hindustan Unilever.
• Fixed deposits offered higher returns than many of these large-cap stocks during the same period.
• Mutual funds continued to invest heavily in these underperforming stocks, holding significant stakes.
• Experts suggest mature companies face diminishing return potential and advise shifting to higher-growth businesses.

Why It Matters: Many Nifty 50 heavyweights show prolonged underperformance, raising questions about growth drivers and investment strategies.