Corporate actions don’t occur everyday, so bank nifty weight age does not change everyday ?
How does that make any difference to ETF.
At the time when ETF is launched, the investments are made based on the weights on that particular date. After that, ETF has to move the same way Index moves. If there is unit creation, the real time NAV is taken. So it will still be at par with the index. Tracking error usually occurs because of the decimal portion of shares which cannot be bought as per the existing weights. Also some cash will be held.
For this very same reason I am bullish on nifty even at these levels. I do not see a correction of more than 15 percent from these levels.
Even if there is a dip the ones who missed out will try buying reliance, hdfc bank, hdfc, icici bank, tcs, infy because these will come to good levels. And these are more more enough to hold nifty.
FMCG always give support in the falling market. Pharma weight is less but that too gives some support.
but market cap changes with changes in price right ?
Guys, Is Bank Nifty rebalanced in March & Sep end?
Does anyone has historical weights saved somewhere? A screenshot or something? Any historical weight?
I don’t know why some people not understanding the most basic rule of stock market. when price changes, it effect everything which is calculated based on price. weights calculation includes price so it is obvious every second when price changes weights also changes. Its as simple as that.
Weights changes and re-balancing is different. Re-balancing is adjusting the index based on the stock performances and future predictions. Hope you understood now.
Where can we find IWF’s for Nifty 50 stocks?
What is IWF ?
Investible Weight Factors