Nifty Total Market Index: Sector Rotation So Far in 2026 11Oct2026
(This is my 541st blog since 2010. Over the years, I have covered global financial markets, with a focus on India, and continue to share insights to help readers understand complex topics in simple language.
The views expressed here are for information purposes only and should not be construed as a recommendation or investment advice. While the author is a CFA Charterholder with nearly 25 years of experience in financial markets, this content is intended to share general insights and does not constitute financial guidance.
1) What Is Nifty Total Market?
Nifty Total Market provides a broad view of the Indian equity market. It comprises 750 stocks: the 500 stocks in Nifty 500 and 250 stocks from Nifty Microcap 250.
The index is based on free-float market capitalisation (to be exact, the Nifty TM has 755 stocks as of 30Sep2026).
As of the latest data, the total market capitalisation of all companies listed on BSE, including the recently-listed NSE Ltd, is Rs 465 lakh crore (USD 4.82 trillion). Nifty Total Market accounts for Rs 423 lakh crore, or more than 90 per cent of this total.
With such broad market coverage, Nifty Total Market index can reasonably be considered a proxy for the Indian equity market.
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Related articles:
Inside the Nifty 500 Index: How It Changed from 2021 to 2026 28Jul2026
Nifty 500 Snapshot 30Jun2026
Inside the BSE 500 and S&P 500: Top Stocks, Top Sectors, Big Risks 31Dec2025
NSE Emerging Indices Fundamentals Comparison 31Dec2025
BSE 500 vs Nifty 500: Same Market, Different Indices 31Dec2025
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2) Sector Breakdown: September 2026
Chart showing sector composition of Nifty Total Market as at the end of 30Sep2026, compared with 31Dec2025 >
The September 2026 sector breakdown provides the starting point for looking at the changes during the year. Nifty Total Market has 20 sectors in total, but only top 10 sectors are shown in the above chart.
3) Sector Changes YTD:
Between 31Dec2025 and 31Sep2026, Financial Services remained the largest sector, though its weight declined from 30.8 per cent to 29.8 per cent.
Capital Goods saw the biggest rise in ranking. It moved up from sixth place to second, with its weight increasing from 6.2 per cent to 8.1 per cent.
Healthcare moved up from fifth to third. Information Technology moved down from second to sixth, with its weight declining from 7.9 per cent to 6.0 per cent.
Oil & Gas also moved down, from third to fifth.
Despite these changes, overall sector concentration changed more or less the same. The Top 3 sector weight increased from 43.3 per cent to 45.3 per cent, while the Top 5 increased from 58.3 per cent to 59.1 per cent.
YTD sector returns:
The 2026 YTD returns show wide dispersion among the major sectors. Nifty Metal (+15.4%), Telecommunications (+20.2%), Capital Goods (+11.5%) and Healthcare (+10.8%) performed relatively well, while IT (-25.9%), FMCG (-19.2%), Oil & Gas (-12.7%) and Financial Services (-10.0%) declined (See blog for more).
Year-to-date sector returns provide useful context for these changes in sector weights. There has been a wide divergence in sector performance during 2026, with some sectors gaining strongly while others declining sharply.
This helps explain some of the changes in sector weights, although changes in index constituents also play a role.
4) Why Did Sector Weights Change?
Sector weights change for two main reasons:
> changes in the market values of existing constituents, and
> changes in the constituents themselves.
This distinction is important for longer-term comparisons.
Nifty Total Market is reviewed twice a year, in March and September. The Mar2026 review brought 59 stocks into the index and removed 59. The Sep2026 review included 53 stocks in and excluded 53.
Therefore, a change in a sector's weight cannot automatically be interpreted as the sector outperforming or underperforming other sectors. Changes in the composition of the index can also contribute.
A sector's changing weight can reflect market performance, changes in index constituents, or both.
5) Gist
Year-to-date data shows meaningful shifts in sector weights, with Capital Goods and Healthcare gaining ground while Information Technology and Oil & Gas losing weight.
Despite broad market coverage, Nifty Total Market retains meaningful sector concentration, with Financial Services alone accounting for nearly 30 per cent of the index.
Past performance does not guarantee future returns. Please do your own research or consult a qualified financial adviser before making investment decisions.
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References and notes:
Screenshot of Nifty Total Market factsheet as of 31Dec2024 >
Screenshot of Nifty Total Market factsheet as of 31Dec2023 >
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