How frequently is the 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 of 31 July 2024, Mahindra & Mahindra had the maximum weightage of 22.31%.

What is Nifty Auto's performance in the last 12 months?

As of 31 July 2024, the index had returned 71.14% over the last 1 year including dividends.

Can we trade in the Nifty Auto index?

Unlike the Nifty 50, there is no instrument to directly trade the Nifty Auto index. However, investors can invest in mutual funds tracking the index. One such example is Nippon India Nifty Auto ETF.

Nifty Auto Stocks List With Weightage in 2024

Team IPOCentral

February 4, 2023

Last updated on August 2, 2024

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 and is indexed to a base value of 1000. In this article, we have compiled a 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 automobile sector universe as of 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.

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, 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. Numerous auto ancillaries 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 (22.31%), Tata Motors (16.12%), Maruti Suzuki India (13.70%), Bajaj Auto (8.54%), and Hero MotoCorp (5.64%).