Nifty Bank vs Nifty IT: Which index should you invest in for long term?
Read here: Tata Motors vs M&M: Which auto major should you pick for the long term? In 2024 YTD, both Nifty Bank and Nifty IT gave positive returns in 3 of the 4 months so far. Nifty Bank added 2 percent in April so far, extending gains for the 3rd straight month. It also rose 2.2 percent in March and 0.3 percent in February, however, fell 4.75 percent in January.
On the other hand, Nifty IT gained 1.5 percent in April so far after a 7.5 percent decline in March. Meanwhile, it also advanced 2.95 percent in February and 3.1 percent in January this year. While the market has been on a record-high spree, Nifty Bank has not participated in the recent rally and had hit its peak in late December, whereas Nifty IT hit its 52-week high in February this year.
Currently, Nifty Bank is just a little over 1 percent away from its record high of 48,636.45, hit on December 28, 2023. Meanwhile, it is still 18 percent higher than its 52-week low of 40,727.25, hit on April 10, 2023. On the other hand, Nifty IT is over 8 percent away from its 52-week high of 38,559.85, hit on February 19, 2024.
It had hit its peak of 39,446.70 on January 4, 2022. Meanwhile, it is still over 35 percent higher than its 52-week low of 26,184.45, hit on April 17, 2023. Meanwhile, in the long term, Nifty Bank has given better returns between the two.
The bank index has rallied over 42 percent in the last 3 years while Nifty IT is up 36 percent and Nifty has gained over 48 percent. In 2024 YTD, 66 percent (8/12) of the constituents of the Nifty Bank index have been in the red and only 4 in the green. AU Small Finance Bank has lost the most, over 19 percent, followed by Bandhan Bank, down 19 percent.
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