Hi Team,
Could you please provide the approx weightage of Nifty Index stocks in % which does have bigger impact on NIFTY fall.
As far as i know, I had been listening & experiencing, ITC, Reliance Ind, ICICI bank constitues to be a heavy pockets in nifty index.
Name the bigger ones like i above mentioned, however i dont know their weightage, so if you can share the same.
The weightage of constituents in NIFTY index is documented every now and then by NSE on their website. Here is the link. Dropdown 'Method of Computation' and download the file 'Download Industry-wise Market Capitalisation, Weightage, Beta etc. (.csv)'.
Similarly for other NIFTY indices too.
http://www.nseindia.com/content/indices/niftymcwb.csv
With the fall of the major constituent stocks Nifty falls, since Nifty falls, traders who trade in the other constituent stocks also pull the stocks down, pulling down Nifty further.
It doesnt mean if ITC which is a major weightage falls (Nifty falls), other stocks with minor weightage won’t fall. Always when breakout occurs, it cascades to other stocks also. So you should be careful on this front.
Check section 7.4 for the same -
To justify my query, if you take today’s ITC jump, CNBC mentioned, ITC contributes 90% of NIFTY gains, which i believe it holds true, if saw the early gains in today’s NIFTY (before 9;25am)