I downloaded Jan 2020 and Feb 2020 weightage from here
Here is screenshot of Jan 2020 weightage:
Here is screenshot of Feb 2020 weightage:
My questions:
1.) How often Bank Nifty weight changes? In the above screenshots, weight is different in both month.
2.) When Bank Nifty weight change, how does the value of Bank Nifty react? For example, If I can calculate bank nifty weight change for next day in advance, can I make a profit by making short/long position?
The weight changes daily when stocks go up and down. But not by a big amount generally. You’re confusing the cause and effect. The weight in the index is decided by market cap. Market cap changes when share prices rise or fall. So their weight also changes daily. Just because nse puts out this data on a monthly basis, it doesn’t mean that weight changes once a month. It keep changing every second that the market is open. But not by a huge amount. For example, it would take sustained rally in Sbi for it to gain extra 2-3% weightage in index and it would require some other stock to give that up. So small changes are occurring on a daily basis. And big changes are visible when you compare data from today with data from 6 months or 1 year ago.
Do you think it is ethical for Yes bank to remain in such an important index especially after the March 2020 fiasco and the subsequent lock in for investors?
Yes bank isn’t part of bank nifty.
cool
