Nifty may lag the market as half its firms grow slower than India's GDP

what happened

Sunil Singhania, founder of Abakkus Asset Manager, told CNBC-TV18 that India's Nifty index could trail the broader market over time. He estimated that 40-50% of its constituents may not expand in line with GDP, a limit he attributed to the structure of their sectors rather than to company-specific problems.

Singhania said IT services firms may struggle to grow beyond 2-3% operationally, and the currency gains the sector enjoyed earlier are fading as the rupee moves toward 94 per dollar. He sees better prospects in capital markets, hospitals, diagnostics and specialty pharma, and also remains active in microcaps.

why it matters

For investors, the point is that a large index weight does not always match growth. Low-margin sectors such as IT and FMCG could hold back Nifty performance even if the broader economy expands quickly.

market impact

India: Nifty and IT stocks — slow growth at constituents and a weaker rupee weigh on the index

instruments