19 December 2012

NIFTY WEIGHTAGE

This would be a very different post for the reason we will not be talking as to where Nifty is headed or what are the supports, resistances, trends etc.
In simpler words Nifty 50 is an index of 50 stocks with different weights.Some example weights are
Stock Name
CMP
Weightage
Value in Nifty
ITC LTD
262.1
8.46
453.99
RELIANCE INDUSTRIES LTD
816.1
8.08
433.60
INFOSYS LIMITED
2351.05
6.75
362.23
ICICI BANK LTD.
962.15
6.61
354.71
HDFC BANK LTD
595.1
6.43
345.05
HDFC LTD
713.3
6.39
342.91

These are the top 6 stocks of Nifty.The combined weightage of these 6 stocks is 42.72% in the Nifty.Now lets look at the last 6 stocks of Nifty

RANBAXY LABS LTD
516.15
0.47
25.22
DLF LIMITED
209
0.45
24.15
SESA GOA LTD
187.1
0.43
23.08
RELIANCE INFRASTRUCTU LTD
510.5
0.41
22.00
SIEMENS LTD
658.5
0.33
17.71
STEEL AUTHORITY OF INDIA
83.15
0.29
15.56

The combined weightage of these 6 stocks is a meagre 2.38% in the Nifty or just 130 points. ( So if i were to make DLF target of 100 as per the Veritas report the impact on Nifty would only be 12 points )The weightages are dynamic and every drop in price leads to weightages being reduced. The top 20 stocks by weights comprise 75 % of the Nifty Weightage.  The last 10 stocks comprise less than 5% of the Nifty weightage.

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