FII buying push Nippon Life India Asset Management to 52-week high

The asset management companies are expected to do well in the coming future as the equity market performs exceedingly well and witness heavy investors’ participation.

Nippon Life India Asset Management (NAM) was amongst the top mid-cap gainers during Monday’s trading session. The stock gained by more than 6 per cent on a closing basis even as Sensex was up by only 1 per cent.   

The company’s stock gained with heavy volumes (spurt in volumes by more than 13.94 times). At Rs 375.50, the stock also made a fresh 52-week high for itself. In Friday’s session, we saw HDFC AMC outperform the broader markets. HDFC AMC and NAM are the only listed asset management companies along with the newly-listed UTI AMC.   

The asset management companies are expected to do well in the coming future as the equity market performs exceedingly well and witness heavy investors’ participation. AMCs have seen swelling of assets while the profitability has improved, owing to low-cost optimisations. NAM places its emphasis on performance, product offering in the passive category, and robust digitech architecture for increasing its market share. The spurt in volumes is seen, owing to some FIIs showing interest in the counter.   

The stock is up by 22 per cent on a YTD basis while it is up by 32 per cent in one year.