Last updated on March 9, 2023
The NIFTY Auto Index is designed to depict the behavior and performance of the Automobile segment of the financial market. The NIFTY Auto Index is made up of 15 tradable, exchange-traded companies. The index represents auto-related sectors like Automobiles 4 wheelers, Automobiles 2 & 3 wheelers, Auto Ancillaries and Tyres. The index has a base date of 1 January 2004 indexed to a base value of 1000. In this article, we have compiled Nifty auto stocks list with weightage which is periodically updated.
Like its elder cousin Nifty 50, the NIFTY Auto Index is also calculated using the free float market capitalization method. The index level reflects the total free float market value of all stocks in the index relative to a particular base market capitalization value. The index represents about 6.65% of the free float market capitalization of the stocks listed on the NSE and 92.92% of the free float market capitalization of the stocks forming part of the Automobiles sector universe as on 30 December 2011.
NIFTY Auto companies index can be used to benchmark fund portfolios, and launch index funds by mutual funds, ETFs, and structured products.
Read Also: NSE IFSC Trading In US Stocks: All You Need To Know
Nifty Auto Index Re-Balancing
Nifty Auto Index is re-balanced on a semi-annual basis with the cut-off dates being 31 January and 31 July of each year. What this means is that for a semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to the market from the date of the change.
Nifty Auto Companies: Key Drivers
- Shares of four-wheeler companies such as Maruti, Ashok Leyland, and Mahindra & Mahindra have risen by up to 50% over the last 12 months on the bourses as sales improved amid easing semi-conductor shortages and increased demand.
- Except for two-wheelers, the rest of the auto industry is extremely sensitive to changes in the overall economic outlook and interest rates due to its ticket size. Consumer sentiment is important in high-priced purchases. Furthermore, the outlook for commercial vehicles is influenced by the general economy.
- Automobiles are either a user’s discretionary purchase or used for economic purposes. The auto industry is cyclical in nature, with periodic downturns. Economic activity, interest rates, available financing options, wage/salary growth, and the regulatory environment all influence cycle sensitivity.
Nifty Auto Index: Auto Eco-System
- Original Equipment Manufacturers (OEMs) are the big players in automotive ecosystems. Naturally, they have an advantage and bargaining power over the other players. Maruti Suzuki, Bajaj Auto, and other OEMs are examples.
- The auto ancillaries are vendors of different components to OEMs and are part of the ecosystem. There are numerous auto ancillaries that produce tyres, engines, fasteners, forging components, crankshafts, batteries, and so on. Motherson Sumi, Sundram Fasteners, Gabriel India, Exide Industries, and MRF are the ancillaries among Nifty auto companies.
Nifty Auto Weightage
In terms of weightage, the top companies in the Nifty Auto Stocks list are Mahindra & Mahindra (20.25%), Maruti Suzuki India (19.10%), Tata Motors (12.57%), Eicher Motors (7.22%), and Bajaj Auto (6.90%).
Nifty Auto Stocks List With Weightage
|Company Name||Industry||Symbol||Price (INR)||Weightage|
|Mahindra & Mahindra Ltd||Automobile and Auto Components||M&M||1,269.6||20.25%|
|Maruti Suzuki India Ltd.||Automobile and Auto Components||MARUTI||8,624.35||19.10%|
|Tata Motors Ltd.||Automobile and Auto Components||TATAMOTORS||420.7||12.57%|
|Eicher Motors Ltd.||Automobile and Auto Components||EICHERMOT||3,105.9||7.22%|
|Bajaj Auto Ltd.||Automobile and Auto Components||BAJAJ-AUTO||3,661.2||6.90%|
|Hero MotoCorp Ltd.||Automobile and Auto Components||HEROMOTOCO||2,419.1||5.23%|
|Tube Investments of India Ltd.||Automobile and Auto Components||TIINDIA||2,771.8||4.81%|
|TVS Motor Company Ltd.||Automobile and Auto Components||TVSMOTOR||1,080.3||4.19%|
|Ashok Leyland Ltd||Capital Goods||ASHOKLEY||145.5||3.49%|
|Bharat Forge Ltd.||Capital Goods||BHARATFORG||816||3.48%|
|MRF Ltd.||Automobile and Auto Components||MRF||85,256.6||2.95%|
|Balkrishna Industries Ltd.||Automobile and Auto Components||BALKRISIND||2,014.35||2.72%|
|Bosch Ltd.||Automobile and Auto Components||BOSCHLTD||17,996.25||2.56%|
|Motherson Sumi||Automobile and Auto Components||MOTHERSON||79.65||2.52%|
|Sona BLW Precision Forgings Ltd.||Automobile and Auto Components||SONACOMS||448.1||2.01%|
Nifty Auto Stock Index Vs Other Sectoral Indices
Read Also: Biggest Automobile Companies in India
Nifty Auto Stocks List: Eligibility Criteria
- Companies should form part of NIFTY 500 at the time of review. In case, the number of eligible stocks representing a particular sector within NIFTY 500 falls below 10, then the deficit number of stocks shall be selected from the universe of stocks ranked within the top 800 based on both average daily turnover and average daily full market capitalization based on previous six months period data used for index rebalancing of NIFTY 500.
- Companies should form a part of the Automobiles sector.
- The company’s trading frequency should be at least 90% in the last six months.
- The company should have a 6-month listing history. If a company files for an IPO, it will be eligible for inclusion in the index if it meets the normal eligibility criteria for the index for a 3-month period rather than a 6-month period. The final selection of 15 companies shall be done based on the free-float market capitalization of the companies.
- Nifty Auto weightage of each stock is calculated based on its free-float market capitalization such that no single stock shall be more than 33% and the weightage of the top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing.
- Companies will be included if their free-float market capitalization is at least 1.5 times the free-float market capitalization of the smallest index constituent in the respective index.
Nifty Auto Stocks List: Eligible Basic Industries
The following industries are eligible to be considered when forming companies for inclusion in the Nifty Auto Index List:
- 2/3 Wheelers
- Auto Components & Equipment
- Batteries – Automobile
- Castings & Forgings
- Commercial Vehicles
- Gas Cylinders
- Passenger Cars & Utility Vehicles
- Trading – Auto Ancillaries
- Trading – Automobiles
- Tyres & Rubber Products
The automotive industry is an important sector in the Indian economy and it weighs nearly 6% in the Nifty 50 index. Accordingly, Nifty Auto is an important index but one should not pick Nifty Auto stocks purely on the basis of past returns. The auto industry is highly cyclical in nature and depending on research and risk appetite one should invest.
Nifty Auto Index Weightage FAQs
How many stocks are there in Nifty Auto Index?
Nifty Auto Index has 15 stocks from auto-related sectors like Automobiles 4 wheelers, Automobiles 2 & 3-wheelers, Auto Ancillaries, and Tyres.
How frequently is Nifty Auto Index rebalanced?
Nifty Auto Index is rebalanced every 6 months with the cut-off dates being 31 January and 31 July of each year.
Which company tops in Nifty Auto weightage?
As on 28 February 2023, Mahindra & Mahindra had the maximum weightage of 20.25%, followed by Maruti Suzuki at 19.10%.
What is Nifty Auto performance in last 12 months?
As of 28 February 2023, the index had returned 18.82% over the last 1 year including dividends.
Can we trade in Nifty Auto index?
Unlike Nifty 50, there is no instrument to directly trade Nifty Auto index. However, investors can invest in mutual funds tracking the index. One such example is Nippon India Nifty Auto ETF.