The Nifty PSE Index comprises 20 stocks that are listed on the National Stock Exchange (NSE). The index includes only those Public Sector Enterprises (PSEs) where 51% of the company’s outstanding share capital is held by the Central Government and/or State Government, directly or indirectly.
Nifty PSE 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.
In this article, we have compiled Nifty PSE stocks list with weightage which is periodically updated. Nifty PSE Index can be used for a variety of purposes such as benchmarking fund portfolios, and launching index funds, ETFs, and structured products.
What is the Nifty PSE Full Form and Index?
The Nifty PSE Index is designed to reflect the behavior of public sector companies. Weights of each stock in Nifty PSE index are calculated based on its free-float market capitalization such that no single stock shall be more than 33% and weights of the top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing. The index has a base date of 2 January 1995 indexed to a base value of 1000.
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Nifty PSE Companies Re-Balancing
Constituent companies in the Nifty PSE 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.
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 PSE Index: Key Drivers
Key business decisions of public sector undertakings in India are largely dictated by government’s ideology and political requirements at the time. This also means that these companies are at the receiving end of populist measures, especially in election years. As a result, index heavyweights in the oil & gas space have had long patches of under recoveries and limited to no price autonomy. Despite numerous reforms, these limitations have persisted in one form or the other and aren’t likely to go away anytime soon.
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Nifty PSE Sector Weightage
The NIFTY PSE Index gives a weightage of 39.36% to Oil, Gas & Consumable Fuels, 30.05% to Power, 12.29% to Capital Goods, 8.0% to Financial Services, and 4.19% to Metals & Mining. The NIFTY PSE index is a free-float market capitalization index. It is important to highlight that Nifty PSE weightage of sectors keeps changing according to the performance of constituent stocks.
Nifty PSE Companies Weightage in 2023
The Nifty PSE Index list of top 10 stocks consisted of the following:
Nifty PSE Stocks List With Weightage
|COMPANY NAME||STOCK SYMBOL||SECTOR||WEIGHTAGE (%)|
|Power Grid Corporation of India Ltd.||POWERGRID||Power||13.94|
|Oil & Natural Gas Corporation Ltd.||ONGC||Oil Gas & Consumable Fuels||10.66|
|Coal India Ltd.||COALINDIA||Oil Gas & Consumable Fuels||8.4|
|Bharat Electronics Ltd.||BEL||Capital Goods||6.36|
|Bharat Petroleum Corporation Ltd.||BPCL||Oil Gas & Consumable Fuels||5.87|
|Indian Oil Corporation Ltd.||IOC||Oil Gas & Consumable Fuels||5.14|
|GAIL (India) Ltd.||GAIL||Oil Gas & Consumable Fuels||4.97|
|Hindustan Aeronautics Ltd.||HAL||Capital Goods||4.2|
|Power Finance Corporation Ltd.||PFC||Financial Services||3.39|
|Indian Railway Catering And Tourism Corporation Ltd.||IRCTC||Consumer Services||3.23|
|Container Corporation of India Ltd.||CONCOR||Services||2.88|
|REC Ltd.||RECLTD||Financial Services||2.81|
|Hindustan Petroleum Corporation Ltd.||HINDPETRO||Oil Gas & Consumable Fuels||2.76|
|NMDC Ltd.||NMDC||Metals & Mining||2.13|
|Steel Authority of India Ltd.||SAIL||Metals & Mining||2.06|
|Life Insurance Corporation of India||LICI||Financial Services||1.79|
|Bharat Heavy Electricals Ltd.||BHEL||Capital Goods||1.74|
|Oil India Ltd.||OIL||Oil Gas & Consumable Fuels||1.57|
Nifty PSE Index Vs Other Sectoral Indices
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Nifty PSE Index List: Eligibility Criteria
- Companies should form part of Nifty 500 at the time of review. In case, the number of eligible stocks representing a particular sector within 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 must have 51% of their outstanding share capital held by the central government and/or state government, directly or indirectly.
- 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 a 3-month period instead of a 6-month period.
- The final selection of 20 companies shall be done based on the free-float market capitalization of the companies.
- 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 PSE Index List: Eligible Basic Industries
Companies from the following industries are eligible to be considered for inclusion in the Nifty PSE Index List:
- Capital Goods
- Oil Gas & Consumable Fuels
- Consumer Services
- Financial Services
- Metals & Mining
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Nifty PSE Index Weightage FAQs
How many stocks are there in Nifty PSE Index?
Nifty PSE Index has 20 stocks like NTPC Ltd, Power Grid Corporation of India Ltd, Oil & Natural Gas Corporation Ltd, and Coal India Ltd.
How frequently is Nifty PSE Index rebalanced?
Nifty PSE 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 PSE weightage stocks?
On 28 April 2023, NTPC Ltd had the maximum weightage of 14.05%, followed by Power Grid Corporation of India Ltd at 13.94%.
What is Nifty PSE performance in the last 12 months?
As of 28 April 2023, the index had returned 12.56% over the last 1 year including dividends.
Can we trade directly in the Nifty PSE index?
Unfortunately, there are no instruments to trade solely in the PSE index. Mutual funds and ETFs tracking public sector undertakings (such as ICICI Prudential PSU Equity Fund and Invesco India PSU Equity Fund) are the closest proxies that investors can resort to.