Explained: Why Nifty50 is outperforming Sensex so far this year
So far in 2025, the Nifty50 index has pulled ahead of the Sensex by 1.4% points—Nifty's up 5.3%, while Sensex managed just 3.9%.
This is their biggest difference in four years and could mark a third straight year where Sensex lags behind.
The difference in stock selection
It comes down to which stocks are included. Winners like Eicher Motors, SBI Life Insurance, Hero MotoCorp, and JSW Steel (up 27-45%) boost Nifty but aren't in the Sensex.
Meanwhile, underperformers like Wipro and IndusInd Bank don't drag either index down much because they're a small part of the Nifty and not in the Sensex.
Sector exposure also plays a role
The mix of companies affects how much each index is exposed to certain sectors.
The mix of companies in each index affects sector exposure and shapes returns, especially when markets are shaky.
Analysts remain bullish on Indian equities
Despite global uncertainty and foreign money moving out, analysts are upbeat.
HSBC just upgraded Indian equities to "overweight," seeing supportive policies ahead.
They expect Sensex could hit 85,130 by end-2025 and Jefferies sees Nifty50 rising about 7% this year—so there's still optimism on Dalal Street.