Many times, the street tends to make a bucket of stocks and a narrative gets created that that these stocks have similar characteristics and hence they tend to move in a similar direction. While this might be correct for some time, but over a period of time, especially when there are headwinds, some companies either diversify into new areas or for any other reason, while the mother set of characteristics remain the same, they become different from each other. Let's take the case of mega cap or the top five IT companies, while the narrative is that they are all the same, the fact is the stock of HCL tech is much higher than what it has formed in the last quarter of 2021 which was the time when all other mega cap IT stocks touched a new high. Essentially, even the companies which look very similar could be very different, in business and their stock performance could also be very different.
