Nifty IT Stocks List With Weightage in 2024

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Last updated on May 3, 2024

The Indian economy has benefited tremendously from the Information Technology (IT) industry, which has emerged as one of the largest sectors in the country. With a contribution of over 8% to the nation’s GDP, it has seamlessly become a pillar of the domestic economy. As such, the Nifty IT Index is an important sectoral index in the Indian stock market, which serves as a benchmark for the IT industry. It provides investors and market intermediaries with an accurate representation of the performance of the IT segment 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.

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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 May 28, 2004.

Since the Nifty IT Index is designed to emulate the behavior 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.

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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

  • The biggest players in the industry including TCS, Infosys, HCL Tech, and Wipro have consistently posted strong results, effectively driving the Nifty IT index. However, this growth has come under pressure recently and the index has been down by double-digit percentages.
  • Industry heavyweights have been battered disproportionately amid concerns regarding slowdown and recession in key markets including the United States and much of Europe.
  • 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.

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Nifty IT Weightage

In terms of weightage, the top companies in the Nifty IT Stocks list are Infosys (26.71%), Tata Consultancy Services (25.76%), Tech Mahindra (10.61%), HCL Technologies Ltd (9.62%), and Wipro (8.63%). 

Nifty IT stocks weightage April 2024
Nifty IT Stocks List – Top Players
Nifty IT stocks list with weightage April 2024
Nifty IT Stocks list as of 30 April 2024

Nifty IT Stocks List With Weightage 

Company NameIndustryPrice (INR)Weightage (%)
Infosys Ltd.Information Technology1,420.5526.71
Tata Consultancy Services LtdInformation Technology3,820.6525.76
Tech Mahindra Ltd. Information Technology1,263.5010.61
HCL Technologies Ltd. Information Technology1,366.609.62
Wipro Ltd.Information Technology462.408.63
LTI Mindtree Ltd.Information Technology4,706.405.71
Persistent Systems Ltd.Information Technology3,368.604.60
Coforge Ltd.Information Technology5,103.254.13
MphasiS Ltd.Information Technology2,314.852.55
L&T Technology Services LtdInformation Technology4,640.151.69

Nifty IT Index Vs Other Sectoral Indices 

Nifty IT Stock List Returns Medium April 2024
Nifty IT Index performance since inception
Nifty-IT-Index-Performance-VS-Nifty-Indices-Small April 2024
Nifty IT Index VS Other Sectoral Indices

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Nifty IT Stocks List: Eligibility Criteria 

  • Companies should form part of the Nifty 500 at the time of review. In case, the number of eligible stocks representing a particular sector within the 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 on based on previous six months period data used for index rebalancing of Nifty 500. 
  • Companies should form a part of the IT sector.
  • The company’s trading frequency should be at least 90% in the last six months.  
  • The company should have a listing history of 6 months. A company that comes out with an IPO will be eligible for inclusion in the index if it fulfills the normal eligibility criteria for the index for 3 months instead of 6 months.
  • The final selection of 10 companies shall be done based on the free-float market capitalization. A preference shall be given to companies that are available for trading in NSE’s Futures & Options segment at the time of final selection.
  • The Nifty IT 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. 

Nifty IT Stocks List: Eligible Basic Industries 

The following industries are eligible to be considered when forming companies for inclusion in the Nifty IT Index List: 

  • Software Development & Consulting
  • Hardware & Equipment
  • IT-enabled Services
  • IT Infrastructure
  • Education

Conclusion

IT industry is an important sector in the Indian economy and it weighs nearly 12.32% on the Nifty 50 Index. Accordingly, Nifty IT is an important index but one should not pick Nifty IT stocks purely based on past returns. Even though the IT industry has delivered secular growth in the past, investors need to take a good view of the industry structure and prospects before investing.

Nifty IT Index Weightage FAQs

  1. How many stocks are there in the Nifty IT Index?

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

  2. 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.

  3. Which company tops in Nifty IT weightage?

    As of 30 April 2024, Infosys Ltd had the maximum weightage of 26.71%, followed by Tata Consultancy Services Ltd at 25.76%.

  4. What is Nifty IT’s performance in the last 12 months?

    As of 30 April 2024, the index had returned 21.91% over the last 1 year. This includes dividends posted by the constituent companies.

  5. 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.

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