Nifty 50 Index Quarterly Movement 30Jun2022 - vrk100 - 09Jul2022

Nifty 50 Index Quarterly Movement 30Jun2022

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(update 11Jan2023 is available here)

 

In the past quarter, there have been slight changes in the composition of Nifty 50 index. As on 30Jun2022, top five stocks in the index have a weight of 42 per cent, a bit higher than a quarter ago. And top 10 stocks have a weight of 59.5 per cent as at the end of June 2022--this higher weight indicates the concentration risk inherent in the Nifty 50 index. (Jan-Mar2022 quarter blog is available here).

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.

Table 1 gives details of top ten stocks movement during Apr-Jun2022 quarter >  

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What Table 1 reveals is:

• Top 5 stocks concentration has increased from 41.8 percent (31Mar22) to 42 percent (30Jun22)
• Top 10 stocks concentration has increased from 58.5 percent to 59.5 percent in the same period
• Axis Bank is out of the Top ten stocks and Hindustan Unilever has gained re-entry into top ten of Nifty 50 index
• Infosys stock used to be at number two as at the end of Mar2022, but it's now down to third place 
• HDFC Bank regained its second place in Nifty 50 index as at the end of Jun2022
  

 

 

Table 2 gives details of top ten sectors movement during Apr-Jun2022 quarter >  

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What Table 2 reveals is:

• Top 3 sectors concentration has decreased from 67 percent (31Mar22) to 65.8 percent (30Jun22), but top 5 sectors concentration has increased from 78.9 percent to 80.2 percent in the same period
  
• Information Technology sector weight fell from 18.2 percent to 15.9 percent in the past one quarter
•  Sectors, like, Oil & Gas, FMCG and Auto, have gained share in Nifty 50 index in the past one quarter; whereas, Metals & Mining and Consumer Durables sectors have lost share
  

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P.S.: Raw data from Nifty Indices >

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

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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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