Twice a year the Nifty Indexes are reconstituted on March 31 and September 30, replacing stocks that don’t fit the criteria with those that do. This past weekend we adjusted our chartbooks to reflect the changes that occurred at the end of the first quarter, so I wanted to write a quick post detailing some of the changes.
First off, here is a list of the stocks that were added and removed from the Nifty 500. The total was 39 this time versus 35 last September.
Click on table to enlarge view.
In terms of top 10 holdings and sector weightings, we saw Maruti Suzuki replaced by Axis Bank and in total the Top 10 stocks now account for 42% of the Nifty 500 versus 40% last September.
The only other major changes were Financial Services share of the Index increasing by 3%, while Autos shrank by 1%, which is no surprise given the price action we’ve seen in both of those areas.
Given the relative strength in Large-Caps, we’re seeing the biggest stocks and sectors get bigger. The smallest areas of the market (from Pharma down to the bottom) shrank in total weighting by 2%, moving from 24% down to 22% as of the end of March. Until Small and Mid-Caps begin trending higher and outperforming, I don’t see that changing anytime soon.
If you have questions about how the components and weightings of any of the other Nifty Indexes we track have changed, please let us know and I can get that data to you.
The Members-Only Chartbooks have been updated to reflect these changes (with the exception of the Equally-Weighted workbook which is in progress), so be sure to check that out as well.
Thanks for reading!