The decline and fall of the public sector in the Nifty
The weight of public sector units in the Nifty 50 index is expected to fall to single digits
The stocks in the Nifty 50 index will be reshuffled on 2 April. Brokerage Motilal Oswal points out that as a result, the weight of public sector units in the index will fall to single digits.
The chart shows the trend. One reason for the trend is the fall in market capitalization from 4.7% of the Nifty in 2012 to 2.3% on 2 April.
Sectors that have seen their weight in the Nifty decline between 2012 and now are capital goods, healthcare, cement, consumer sector and utilities. On the other hand, sectors that have seen their weights increase include private banks, non-banking financial companies (NBFCs), autos and technology.
The share of private banks has risen from 16.9% of the Nifty in 2012 to 23.8% currently. The share of NBFCs, too, has moved up considerably.
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