Technical Analysis of Indian Equities by Nooresh

Nifty Calculator October 2017 & Industry Weightages 2008-2017

Nifty Kya Lagta hai ?

Every technical analyst/fundmental analyst/ strategist and even the paanwala talks about Nifty/Sensex has an answer to the question – Nifty kya lagta hai ?

9 out of 10 people will give you an answer.

But if you ask them tell us top 5-10 stocks which will lead the market in the direction they say only a couple of them will have the answers.

You can find your own possible targets by playing around with the Nifty calculator which may be a better estimate.

What is Nifty Calculator ?

-> As per the weightages given by NSE for Nifty stocks we have created the Nifty Calculator.

-> Change the expected price and the expected Nifty will change accordingly

-> Create 3 different sheets for yourself–

Pessimistic ( where you put the worst possible prices you think )

Optimistic ( the best prices possible)

Neutral/Rational/Technical / Fundamental ( prices on any reasoning )

Please Note as weightages change every day by small margin this will not give an accurate estimate but will be approximate.

Nifty Calculator

Do play with the excel sheet to find

Nifty Calculator - Weightages as per October 2017.

Top 10 stocks = 52.46% of Nifty

Top 20 stocks = 71.51% of Nifty

Interesting Observations

  • Banks and Financials are now around 33.3% of the Nifty. Out of this 2.85% is PSU Banks which is the only PSU Bank left in the Nifty.
  • Nifty is valued on PE basis but 33% of Nifty is valued on P/B Basis. And most of the private banks and financials have historically high P-Es. Given the big shift towards Banks and Finance sector how does it affect the Nifty P-E ?
  • The largest weight in the index is now HDFC Bank with a weightage of 9.27%
  • Top 20 stocks are now 71.5% from a zone of 76-78%.

Industry Weightages 2008-2017

The weightages are as on March of every year.

The categorization of sectors is as per NSE. ( we will be working a bit more into better categorization of sectors and stocks. )

Nifty Weightages

Quick Observations

  • The increase in weightage of Banks in the Nifty is due to Price Appreciation as well as shift to Free Float Methodology.
  • The decrease in Weightage for PSUs is a mix of Price Depreciation as well as shift to Free Float Methodology.

Article by Nooresh Merani

Nooresh has written 2623 articles.

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