How many stocks are there in the Nifty IT Index?

Nifty IT Index has 10 stocks like Infosys Ltd, TCS, HCL Technologies Ltd, Tech Mahindra, and Wipro Ltd.

How frequently is the Nifty IT Index rebalanced?

The Nifty IT 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 IT weightage?

As of 31 October 2024, Infosys Ltd had the maximum weightage of 26.45%, followed by Tata Consultancy Services Ltd at 23.26%.

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

As of 31 October 2024, the index had returned 34.87% over the last 1 year. This includes dividends posted by the constituent companies.

Can we trade in the Nifty IT index?

Investors have various options to invest in traditional mutual funds and ETFs tracking the IT index. One such example is Nippon India ETF Nifty IT popularly known as Nifty BeES. Some sectoral mutual fund schemes are ICICI Prudential Technology Fund and Franklin India Technology Fund although these schemes don't strictly follow the Nifty IT index.

Nifty IT Stocks List With Weightage in 2024

Team IPOCentral

November 23, 2024

The Indian economy has significantly benefited from the Information Technology (IT) industry, which has become one of the largest sectors in the country. Contributing over 8% to the national GDP, it has established itself as a cornerstone of the domestic economy. Consequently, the Nifty IT Index serves as a critical sectoral benchmark in the Indian stock market, accurately reflecting the performance of the IT segment. This index provides valuable insights for investors and market participants regarding the health of the IT industry in India.

In this article, we have compiled a Nifty IT stocks list with weightage which is periodically updated. Nifty IT companies index can be used to benchmark fund portfolios and launch index funds by mutual funds, ETFs, and structured products.

Read Also: Nifty Metal Stocks With Weightage

What is the Nifty IT index?

The Nifty IT Index is made up of 10 tradable, exchange-traded companies selected based on the free-float market capitalization method. The index represents companies engaged in activities such as software development, hardware, and IT infrastructure, among others. The index has a base date of 1 January 1996 and is indexed to a base value of 1000. The base value of the index was revised from 1000 to 100 with effect from 28 May 2004.

Since the Nifty IT Index is designed to emulate the behaviour and performance of the IT segment, its constituent stocks need to earn at least 50% of their revenue from IT-related services such as hardware & equipment production, IT-enabled services, and education in addition to the ones mentioned above.

Nifty IT Companies Re-Balancing

Constituent companies in the Nifty IT Index are re-balanced on a semi-annual basis. The cut-off date is 31 January and 31 July of each year, i.e. For a semi-annual review of indices, average data for 6 months ending the cut-off date is considered.

A prior notice of at least four weeks is given to the market from the change date. As a result, changes made on 31 January will be effective from 31 March.

Index Governance

A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee.

Nifty IT Index: Key Drivers

Market Sentiment: The overall market sentiment has been positive, with IT stocks leading a rally. For instance, major players like Infosys and TCS have shown significant gains, reflecting investor confidence in the sector despite global uncertainties.
Global Economic Conditions: The performance of global markets, particularly in major economies like the United States, has a direct influence on Indian IT stocks. For instance, trends in U.S. technology spending and corporate earnings can affect investor sentiment towards Indian IT firms.
Government Policies: A key pillar of strength for the industry has been government support through the establishment of Special Economic Zones (SEZ), tax benefits, and accelerated depreciation. Many of these benefits continue as of date.

Nifty IT Index: IT Eco-System

The Indian IT industry is almost entirely service-based with very few players following the product-led pathway.
Since the service delivery is virtually most of the time and the business model is based on service outsourcing, it is not uncommon for the original vendor to further outsource chunks of the project to specialized players. These subcontractors are typically much smaller in size and specialize in a particular technology or domain.

Nifty IT Weightage

In terms of weightage, the top companies in the Nifty IT Stocks list are Infosys (26.45%), Tata Consultancy Services (23.26%), HCL Technologies Ltd (10.69%), Tech Mahindra (10.46%), and Wipro (7.99%).