Nifty Calculator - Weightages as per 30th June 2018.
· HDFC Bank and HDFC Limited are 17.53% of the Index !!
· Top 5 names are 36.86% of the index
· Top 10 is 56.46% of the index
· Top 20 is 74.73% of the index
· Only one #PSU Bank left in the index – SBI has a weight of only 2.30%
· Banking and Finance now constitute 37.65% of the Index
· Private Banks constitute 24.57% of the Index.
· Metals and Mining contribute only 2.85 % ( Vedanta, Hindalco,Tata Steel)
· FMCG stocks ITC and HUL command 7.45% of the Index.
Thoughts to Ponder on
- HDFC twins now are 17.5% of the index. The trend of the market now depends a lot on these two names.
- Financial Services are 37% + of the index and generally everyone values it at Price to Book and other parameters and not P-E . Reduction of Low P-E PSUs to majorly Private Banks and Private Financials that generally quote at high P-E, does it imply a higher base P-E for Nifty for coming years ?
- Once the Insurance companies are done with their capital raising we may expect a HDFC Life or another to also become part of the index in coming years. Maybe in future 40% of the Index would be Banking and Financials. Does such an index reflect the Economy ?
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.