Bank, energy stocks most consistent performers of last 10 years. Should you buy, hold, or book profits?
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While the Nifty has ended in the green nine times in the last 10 years, energy and financial services are the only sectors that have matched the 50-stock index in terms of positive outcomes. Both sectors have also delivered superior 10-year CAGR returns of 16% and 13%, respectively, versus 11% by the Nifty. Another striking commonality is that all three of them closed in the red in 2015 and have managed to remain unbeaten since. Financial services stocks, which carry the highest weight in the Nifty at around 34%, have given double-digit annual returns ranging from 11% to 41% on five occasions—2017-2019, 2021, and 2023. Meanwhile, single-digit returns between 5% and 9% were seen in 2016, 2020, 2022, and 2024. The index fell over 5% in 2015. With a 10% weight, the energy sector is the third-biggest contributor to the 50-stock index. As against Nifty’s fall of 4% in 2015, Nifty Energy corrected by less than 1%. This index has yielded double-...