INSUBCONTINENT EXCLUSIVE:
ET Intelligence Group: A comparison of companies constituting the Nifty in 1996 and now shows that the index is still dominated by
In over two decades since the launch of the index, an average Nifty company has grown five years older and a little more promoter-owned.
The
average age of a Nifty company has increased to 43 years now from 38 in 1996
The NSE benchmark index comprises a higher number of older companies than what it had over two decades ago
With six companies from the automobile industry and the same number from oil gas, four each from metals and pharma and two companies from
the power sector, the index has more representation of the manufacturing sectors than those like IT, banking and financial services that
together have 16 companies in the 50-stock index.
Only 13 stocks, or a little over a quarter, of the original list are still part of the
MotoCorp.
The average promoter holding of these 13 companies has increased to 30.5% now from 27% in 2001
The average promoter holding of all the Nifty companies was 40% in 2001
Now, it is 42%.
Sectorally, the Nifty has not changed drastically except for some aspects
There are now five IT companies in the index compared with none to begin with
Six fast moving consumer goods companies in 1996 have come down to two
Instead of having a hotels company (Indian Hotels) then, there is now an entertainment company (Zee Entertainment)
While a shipping company (GE Shipping) has made way for a ports company (Adani Ports), a consumer durables stock (Titan) has replaced a tyre
Like IT companies that grew and created space for themselves in the index, it remains to be seen which will be the next sector that will
make its pronounced entry into the index in the coming years.
