Is NIFTY50 index a fair representation of the broader market condition in India?
What is your view on this news? Is it time to add more stocks to the index like the S&P 500 ?
Nothing will happen, even if you keep 100 stocks, still top 5 stocks will have half of the market cap
So they will just manipulate 5 stocks instead of 2-3 stocks as they do right now
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I think weightage of stocks like hdfcbank needs to be reduced
Adding more won’t give any fair value as such but what is missing in India is most of the company products what we generally use are not listed for ex: we use ola/uber to travel, use swiggy/zomato to order food, we use paytm/phonepe/gpay/bhim to do daily transactions and again these are not listed, we use oyo rooms, byju, Amazom/flipkart, many financial apps , and we have few other unicorns based out of India and not listed. Other problem is few are listed but not in India like facebook, google, Apple, netflix,uber and many more. These are part of companies which truly represent the economy and when majority of them are missing how can we expect to have a fair, broader and deeper representation? I hope you got it now.
Also top 50 represent almost 70% free float market cap, so no need to add more.
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I think all the stocks in Nifty 50 should be given equal weitage.
not all stock, ALL sector .
but NIFTY50 is representation of top 50 companies based on Mkt CAP, So may not possible.
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Nifty Next 50 Equal Weightage (NN50EW) would be better than N50EW I think.
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I think that would be disaster, reliance can not be easily moved where as last 5 stocks in index can be, also we have witnessed how few stocks even though they represent nifty 50 has moved due to various reasons. Also this will increase the volatility of index to much higher levels.
Also if any ETF is following that index, then if more funds are flowing into or out of that ETF, it can exert much pressure on smallcap( compared to others in same index) stocks.
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If manipulation is happening in Nifty 50 stocks, what is SEBI doing?
I have edited, I mean it will take less money to move a small stock where as one need a lot to move large caps, so if all are equal weighted then it would be easy to move index than to current scenario.
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But still we have seen many instances where large caps like reliance, hdfc bank, etc. have been driven/manipulated and driven in a purticular direction.
Recently in May or June nifty crashed 200 points from its highs in just couple of miniutes and in next couple of miniutes it recovered.
In kotak mahindra bank some people spread the rumors of warren buffett is buying stake (on Tv news channels) and its price jumped more than 12%.
In other case of DHFL when it crashed more than 60%(from @ 600 to @ 280) in one day, Its promoters/company officials immidiately came on Tv channels and openly told the public that there is nothing to worry. and now see the price of DHFL. that means they openly misguided the public.
Isn’t all these manipulation? what is SEBI doing?
If all given equal weightage then this IBULHSGFIN alone will cause Modi to resign 
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yes, but in the past stocks like reliance, tcs, infosys, l&t also have fallen more than 50%.
Did rahul gandhi resign??
I think that when it comes to index on stock market, the real question is what do you want to present with this index and what you want to show (or show off) to potential investors. I have never treated indexes like something quite representative and you can manipulate then as you wish
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