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Nifty MNC Index Outperforms the Benchmark Index
Jun 26, 2019


When it comes to stock market performance, MNCs have outperformed the broader market.

The Nifty has a MNC index. This index comprises 15 listed companies. The foreign shareholding in them is over 50% and/or the management control is vested in the foreign company.

This Nifty MNC Index has outperformed the Nifty 50 index in the last five years.

Why the outperformance?

Generally, MNCs have a vast global experience. These companies have weathered the competition in many markets across the world.

Also, MNCs generally have strong parentage. This helps create strong brands and gain market share.

Not to mention MNCs have strong balance sheets. This brings stability during times of market volatility.

Similarly, in the past, MNCs have demonstrated good capital allocation. Hence they, consistently delivered high returns on capital.

Finally, MNCs typically have high standards when it comes to board composition, corporate governance, and operational efficiency. All this helps to maximise shareholder wealth.

In Smart Money Secrets, we recommended such a company from the MNC space.

If you've subscribed to Smart Money Secrets, please click here to view the recommendation report.

If you haven't subscribed to Smart Money Secrets yet, you can access the report by signing up here.

Data Source: NSEIndia

This Chart Of The Day was published in The 5 Minute WrapUp - Our Latest Recommendation: A High-Quality MNC Pharma Stock

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