Nifty 50 Index Quarterly Movement 31Mar2022
(A new blog post dated 09Jul2022 is available here with an update of the information as of 30Jun2022)
In the past quarter, there have been slight changes in the composition of Nifty 50 index. As on 31Mar2022, top five stocks in the index have a weight of 41.8 per cent, a bit higher than a quarter ago. And top 10 stocks have a weight of 58.5 per cent as at the end of March 2022--this higher weight indicates the concentration risk inherent in the Nifty 50 index.
As argued in an earlier blog dated 28Jan2022 (titled Nifty 50 Index Evolution), the increasing concentration risk of one of India's premier stock indices has investment implications for both passive and active investors.
In the first quarter of calendar year 2022, Hindustan Unilever stock was dethroned from the top 10 in the index, replaced by Axis Bank. ITC Limited stock moved from 10th position to 8th position in the index during the quarter.
Interestingly, ITC stock used to be at number two position in Nifty 50 as at the end of December 2016, with a weight of 6.8 per cent.
The top three sectors in the Nifty 50 continue to be financial services, information technology and oil & gas. While the former two have lost their weight slightly during the quarter, oil & gas sector led by Reliance Industries has gained weight in the period. Healthcare sector too gained its weight from 3.4 per cent to 4.0 per cent during the quarter.
The details can be observed from the tables presented below:
Table 1 gives details of top ten stocks movement during Jan-Mar2022 quarter >
Please click on the image to view better >
Table 2 gives details of top ten sectors movement during Jan-Mar2022 quarter >
Please click on the image to view better >
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Weblinks and Investing-------------------
References:
NSE Nifty Indices monthly factsheets
NSE Indices Comparison - compare Nifty 50, Nifty Next 50, Nifty 100 and Nifty 500
Mutual fund asset class returns
India Equity ETF Risks and Returns 31Dec2021
BSE 500 versus S&P 500 Indices 31Dec2021
Disclosure: I've vested interested in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.
Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets.
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He blogs at:
https://ramakrishnavadlamudi.blogspot.com/
Twitter @vrk100
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