Nifty IT index is designed to reflect the behavior of companies engaged into activities such as IT infrastructure, IT education and software training, networking infrastructure, software development, hardware, IT support and maintenance etc.
The index comprised of 10 companies with base date of the index being January 1, 1996. The base value of the index was revised from 1000 to 100 with effect from May 28, 2004.
Nifty IT Index
The NIFTY IT index captures the performance of the Indian IT companies. The NIFTY IT Index comprises of 10 companies listed on the National Stock Exchange (NSE).
The NIFTY IT index is computed using a free-float market capitalization method with a base date of Jan 1, 1996, indexed to a base value of 1000 wherein the level of the index reflects the total free-float market value of all the stocks in the index relative to a particular base market capitalization value.
The base value of the index was revised from 1000 to 100 with effect from May 28, 2004. NIFTY IT Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Nifty IT Stocks Top constituents by weightage
- Tata Consultancy Services Ltd. 29.33 % Stock Weightage
- Infosys Ltd. 22.73 % Stock Weightage
- HCL Technologies Ltd. 10.02 % Stock Weightage
- Tech Mahindra Ltd. 9.53 % Stock Weightage
- Wipro Ltd. 9.53 % Stock Weightage
- MindTree Ltd. 5.69 % Stock Weightage
- NIIT Technologies Ltd. 5.36 % Stock Weightage
- Hexaware Technologies Ltd. 3.18 % Stock Weightage
- Tata Elxsi Ltd. 2.43 % Stock Weightage
- Justdial Ltd. 2.18 % Stock Weightage
Nifty IT Companies
|HCL Technologies Ltd.||HCLTECH|
|Hexaware Technologies Ltd.||HEXAWARE|
|NIIT Technologies Ltd.||NIITTECH|
|Tata Consultancy Services Ltd.||TCS|
|Tata Elxsi Ltd.||TATAELXSI|
|Tech Mahindra Ltd.||TECHM|
Nifty IT Index Chart
Since Inception The Nifty IT index has Given the Price Return of 24% CAGR For the Last 25 years. This is the Chart that shows Return from 1996 to 2020
Here is the list of Top 10 IT company in India. The list is ranked based on the total sales in recent years
- 1. Tata Consultancy service.
- 2. Infosys
- 3. HCL Technologies
- 4. Wipro Limited
- 5. Redington India Ltd
- 6. Tech Mahindra Ltd
- 7. Larsen & Toubro Infotech Ltd
- 8. Mphasis Ltd
- 9. Mindtree Ltd
- 10. Hexaware Technologies Ltd
Other Nifty Sectoral
The NIFTY Pharma Index is designed to reflect the behavior and performance of the companies that are engaged in the manufacturing of pharmaceuticals. The index comprises of a maximum of 10 stocks. The base date of the index is January 1, 2001, and the base value of 1000 points.
The NIFTY PSU Bank Index is designed to reflect the behavior and performance of the public sector banks. The index comprises of a maximum of 12 stocks. The base date of the index is January 1, 2004, and the base value of 1000 points.
Eligibility Criteria for Selection of Constituent Stocks:
i. Companies must rank within top 800 based on both average daily turnover and average daily full market capitalisation for the last six months.
ii. Companies should form a part of the IT sector.
iii. The company’s trading frequency should be at least 90% in the last six months.
iv. The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
v. Final selection of 10 companies shall be done based on the free-float market capitalization. A preference shall be given to companies that are available for trading in NSE’s Futures & Options segment at the time of final selection.
vi. Weightage of each stock in the index is be calculated based on its free-float market capitalization such that no single stock shall be more than 34% and weightage of top 3 stocks cumulatively shall not be more than 63% at the time of rebalancing.
Index Re-Balancing: Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change.
Index Governance: A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee.