January 17, 2016

NIFTY index 2007 and today - nice article

Some amazing facts !!
  • Out of the Top 20 stocks in 2007 only 10 remain in 2015 in the Top 20 weights. 
  • Out of top 20 in 2007 there are 4 stocks which are not part of Nifty. ( RPL got merged in RIL ). This constituted 11.67% of Nifty. 
  • Out of the Top 10 weights in Nifty only 3 remain in Top 10 of 2015. These 3 constitutred 20.03% of Nifty and are now only constituting 14.95% of Nifty. 
  • The top 4 weights of 2015 Infosys/ hdfc bank / hdfc / itc now command a weight of 28.85% but used to command only a weight of 9.95% in 2007 !! -------------- ( WOW ) 
  • Reliance Industries and Reliance Petroleum i.e RIL an RPL had a combined weight of 14.56% and now its only Reliance with a weight of 5.91% ------------------ ( WOW) 
  • Rcom was the 7th largest weightage in Nifty is no more part of it. Even Unitech was at the 16th place. 
  • ONGC the 2nd largest weightage on Nifty is now at the 21st place. From 7.13% to 1.56%. 

Quite a lot of this is due to the change toward free float methodology and the big drops in many stocks and big rallies in others. You may find much more such facts.

To simply put Nifty today is a totally different animal then from what it was in 2007 and thats why the magnitude of ups and downs have reduced. We have a bunch of solid businesses ( unlike frothy ones in 2008) at the top of Nifty top 20 or a lot of crazy moves which have happened in smallcaps/microcaps.

Read complete article at http://www.nooreshtech.co.in/2016/01/nifty-2016-is-very-different-animal-from-nifty-2008.html

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