Global Financial Crisis Vs Covid-19: How Top 15 Of The NSE 500 Stocks Fared
A trader reacts as he looks at financial data on computer screens on the trading floor. (Photographer: Luke MacGregor/Bloomberg)

Global Financial Crisis Vs Covid-19: How Top 15 Of The NSE 500 Stocks Fared

Every time there’s a crisis, investors repose faith in large caps and index heavyweights. The stock rout sparked by Covid-19 is no different.

Share of top 15 stocks in the total market capitalisation of Nifty 500 has jumped this year as the coronavirus outbreak froze economic activity and spooked investors. These stocks have seen a relatively less intense selloff than the rest of the stocks in the benchmark since January highs.

The NSE 500 has tumbled 23 percent year-to-date despite some recovery in April. Amid this volatility, the share of 15 stocks in the market cap of the index is 41.2 percent compared with 39.2 percent in January.

Reliance Industries Ltd., Tata Consultancy Services Ltd. and HDFC Bank Ltd. contribute the most to this increase.

That’s what happened in the 2008-09 credit crisis as well. In January 2008, when Indian markets were soaring, the top 15 companies accounted for 41.1 percent of the market share largest 500 companies in India then. The NSE 500 tumbled 56 percent that year and the share of the biggest 15 rose to 45.2 percent by December-end. Reliance Industries, Oil and Natural Gas Corporation Ltd. and NTPC Ltd. were the top three contributors.

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