You can earn easy money when a stock enters the Nifty 50. It's a MYTH

VR analyzed 40 stocks added to the Nifty 50 index in the last 15 years (up to February 2024) and found that reality doesn’t align with the hype. 1. If someone had held a stock for six months after its Nifty 50 inclusion, half of the 40 companies delivered positive returns in the six months following their inclusion, while the other half delivered losses. 2. Extending the holding period to 12 months yielded similarly underwhelming results. Only 23 stocks, 57% of the pool, posted positive returns, with 17 still underperforming 3. If someone had bought a stock two months before inclusion and held for six months afterward (a total of eight months), out of the 40 companies, 17 stocks still delivered negative returns after the eight months. The message is clear, betting on index inclusion offers no meaningful edge.