How many stocks are there in the Nifty Metal Index?

Nifty Metal Index has 15 stocks like Tata Steel, Hindalco Industries, Adani Enterprises, and JSW Steel.

How frequently is the Nifty Metal Index rebalanced?

The Nifty Metal 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 Metal weightage stocks?

On 31 July 2024, Tata Steel had the maximum weightage of 20.04%, followed by Hindalco Industries Ltd at 14.39%.

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

As of 31 July 2024, the index had returned 42.38% over the last 1 year including dividends.

Can we trade directly in the Nifty Metal index?

Unfortunately, there are no instruments to trade solely in the metal index. Mutual funds and ETFs tracking commodities (such as ICICI Prudential Commodities Fund) are the closest proxies that investors can resort to. Several fund houses have Business Cycle Funds which can also go heavy on metals depending on the business environment at the time.

Nifty Metal Stocks List With Weightage in 2024

Team IPOCentral

April 18, 2023

The Nifty Metal Index is designed to reflect the behavior and performance of the metals sector including mining in India. The Nifty Metal Index comprises a of maximum 15 stocks that are listed on the National Stock Exchange (NSE).

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

What is the Nifty Metal Index?

Nifty Metal Index is computed using the free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to a particular base market capitalization value. The index has a base date of 1 January 2004 and is indexed to a base value of 1,000 but it was launched only in July 2011.

Nifty Metal Index can be used for a variety of purposes such as benchmarking fund portfolios and launching index funds, ETFs, and structured products.

Nifty Metal Companies Re-Balancing

Constituent companies in the Nifty Metal 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 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 date of the change. As a result, changes made on 31 January will be effective from 31 March.

Index Governance

A professional team at IISL (India Index Services and Products Limited) manages the NIFTY Metal Index. There is a three-tier governance structure comprising the Board of Directors of IISL, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee. It is worth highlighting that IISL is a group company of NSE.

Nifty Metal Index: Key Drivers

The metal and mining industry in India is characterized by its huge size (directly a function of the domestic market), huge capital expenses required, and long gestation periods involved. As a result, there are often long phases of mismatch between demand and supply, resulting in fluctuation in product prices. However, demand is fairly inelastic as metals are widely used in industries and commercial and residential applications.

By extension, the cyclicality is reflected in the performance of the Nifty metal index through sharp peaks and troughs.

Nifty Metal Weightage

In terms of weightage, the top companies in the Nifty Metal Stocks list are Tata Steel (20.04%), Hindalco Industries (14.39%), JSW Steel (13.02%), Adani Enterprises (12.22%), and Vedanta Ltd (11.15%).