Nifty Metal Stocks List With Weightage in 2024

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Last updated on May 3, 2024

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.

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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.

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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.

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Nifty Metal Weightage

In terms of weightage, the top companies in the Nifty Metal Stocks list are Tata Steel (21.18%), Hindalco Industries (14.67%), JSW Steel (13.11%), Adani Enterprises (12.48%), and Vedanta Ltd (8.30%).

Nifty Metal stocks with weightage April 2024
Nifty Metal Stocks List – Top Players

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Nifty Metal stocks list with weightage April 2024
Nifty Metal Stocks list as of 30 April 2024

Nifty Metal Stocks List With Weightage 

Company NameIndustryPrice (INR)Weightage(%)
Tata Steel Ltd.Metals & Mining165.0021.18
Hindalco Industries Ltd.Metals & Mining644.4014.67
JSW Steel Ltd.Metals & Mining882.2013.11
Adani Enterprises Ltd.Metals & Mining3,054.7012.48
Vedanta Ltd.Metals & Mining397.858.30
Jindal Steel & Power Ltd.Metals & Mining929.655.32
NMDC Ltd.Metals & Mining254.404.53
APL Apollo Tubes Ltd.Capital Goods1,557.254.31
Jindal Stainless Ltd.Metals & Mining706.953.72
Steel Authority of India Ltd.Metals & Mining164.203.70
National Aluminium Co. Ltd.Metals & Mining185.252.60
Hindustan Copper Ltd.Metals & Mining386.001.98
Hindustan Zinc Ltd.Metals & Mining426.951.69
Ratnamani Metals & Tubes Ltd.Capital Goods3,159.651.28
Welspun Corp Ltd.Capital Goods564.351.15

Nifty Metal Index Vs Other Sectoral Indices 

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

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Nifty Metal 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 based on previous six months period data used for index rebalancing of Nifty 500.
  • Companies should form a part of the Metals sector.
  • The company’s trading frequency should be at least 90% in the last 6 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 companies shall be done based on the free-float market capitalization.
  • The weightage of each stock in the index 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 Metal Stocks List: Eligible Basic Industries

Companies from the following industries are eligible to be considered for inclusion in the Nifty Metal Index List: 

  • Aluminium
  • Copper
  • Diversified Metals
  • Ferro & Silica Manganese
  • Industrial Minerals
  • Iron & Steel
  • Iron & Steel Products
  • Pig Iron
  • Precious Metals
  • Sponge Iron
  • Trading – Metals
  • Trading – Minerals
  • Zinc

Conclusion

As mentioned above, the industry offers inputs for several other industries. Therefore, it plays an important role in the Indian economy and weighs nearly 3.96% on the Nifty 50 Index. While this industry benefits from robust and inelastic demand, it also suffers from long industry cycles which often run for years.

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Nifty Metal Index Weightage FAQs

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

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

  2. 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.

  3. Which company tops in Nifty Metal weightage stocks?

    On 30 April 2024, Tata Steel had the maximum weightage of 21.18%, followed by Hindalco Industries Ltd at 14.67%.

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

    As of 30 April 2024, the index had returned 58.81% over the last 1 year including dividends.

  5. 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.

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