Risk-Adjusted Performance Analysis of Nifty 50 Stocks

Abstract: This study analyzes the performance and risk characteristics of all 50 Nifty 50 stocks over the five-year period from April 2020 to March 2025. Using historical prices and Nifty 50 benchmark returns, the research evaluates each stock through key measures such as annual returns, volatility, Sharpe ratio, Treynor ratio, and Jensen’s alpha. The results show clear differences across sectors: Industrials, Infrastructure, Pharma, and Telecom delivered stronger risk-adjusted returns, while FMCG and Cement lagged behind the index. Adani Group companies posted the highest overall returns and alpha, though with higher volatility. Financials and IT showed mixed outcomes, with several stocks trailing the benchmark. Overall, the findings highlight how cyclical, high-beta sectors generated higher alpha, whereas defensive sectors provided stability but lower returns—offering useful insights for investors and portfolio managers studying large- cap equity performance.

Keywords: Sharpe Ratio, Treynor Ratio, Jensen's Alpha, Risk-Adjusted Returns, Nifty 50, Portfolio Performance, Systematic Risk, Beta, Financial Metrics, Sector Analysis, Indian Stock Market, Mutual Fund Analysis, Benchmark Comparison, CAPM, Volatility, Return Analysis, Equity Research, Investment Strategy, Performance Evaluation, Financial Modeling