Launch date: April 22, 1996
Base date : Nov
o3, 1995
Base value : 1000
Free float market capitalization calculation is used
index re balancing : Semi annually
List of Sector included.....
AUTOMOBILE
CEMENT & CEMENT PRODUCTS
CONSTRUCTION
CONSUMER GOODS
ENERGY
FERTILIZERS & PESTICIDES
FINANCIAL SERVICES
IT
MEDIA & ENTERTAINMENT
METALS
PHARMA
SERVICES
TELECOM
Following is the nifty 50 data representing 50 stock
list with sector allocation and sales of each company.
- ·
Here total sector is 13 out of which top 5 sector represent 85%
nifty component it mean for 100 point move in nifty 85 point move only from 5
sector which are financial services, Consumer Goods, Energy, IT and Automobile.
Out of top 5 Industry Only Financial Services Hold almost 45% weightage and out
of total 50 stock it hold almost 38% weightage.
- ·
Recently We have seen adverse move in IBULLS, Yes Bank, INDUSBANK
etc from this sector. One concern of more importance is this sector is dealing
with cash and having good margin so Price to Earnings Ratio might be low
compare to other industry which directly leads nifty at trading lower PE or
Having big Earning Per share.
- ·
India is having agriculture as main activity while Nifty representing
only 0.75% for this sector as a whole.
- ·
Pharma Sector is having only 2.5% importance in Nifty 50 while
having populist Country like India it should not represent proper allocation.
· Due to Huge exposure of top 10 stock nifty can easy to manage if particular
group of investor started with strong hand.
In short, Nifty 50 is just an index for investor it should not be benchmark for comparison of investment, In India there is more than 3000 listed company and more than 100 sector while Nifty 50 is concentrating very small part of representation. It could be the reason small index and sector index born in the stock market.
Happy Reading
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