Nifty composition: Banking sector’s weightage jumps and Consumer’s declines MoM basis in October – what should investors know?

Nifty composition: Banking sectors’ weightage in Nifty50 has increased month-on-month (MoM) in October 2022, as per the data released by Motilal Oswal. The weightage of private banks, the highest of all sectors in Nifty, rose by 30 basis points to 23.6 per cent from 23.3 per cent MoM.

Similarly, the private bank’s weightage in Nifty50 has jumped 170 bps from December 2021 levels, the domestic brokerage report said. It added, the public sector banks’ weightage in Nifty has also increased by 10 bps to 2.8 per cent from 2.7 per cent MoM.

While the weightage of the Technology sector has slumped by 500 bps year-to-date (YTD) to 14.1 per cent, however, the sector has shown growth of 30bps MoM in October, Motilal Oswal said.

Even Oil & Gas sector led by Reliance Industries saw a surge of 20 bps to 12.1 per cent weightage in Nifty in October from 11.8 per cent in the previous month.

Sectors that saw a decline in their weightage MoM basis are: NBFC + Insurance down 20 bps, Consumer down 70 bps (highest so far in any sector), Healthcare 10 bps

Sectors such as Automobile, Cement, Metals, and Telecom remained unchanged in October in terms of their weightage in Nifty50 as compared to the previous month, the domestic brokerage said.

Around 80 per cent of the Nifty50 constituents gained in October 2022, a data release by domestic brokerage Motilal Oswal said. Among Nifty constituents, 40 of them closed higher in October 22 and around 44 per cent of Nifty constituents outperformed the benchmark indices, it said.

The brokerage added nearly 65 per cent of Nifty constituents traded higher YTD, the brokerage said, listing Adani Enterprises, Coal India, M&M, ITC, and Eicher Motors as among the top gainers YTD.

The Nifty index in the previous month gained nearly 5 per cent and registered a growth of 4 per cent YTD, the brokerage mentioned in the report. While broader markets such as Midcap 100 and Smallcap 100 gained in October but mixed in YTD as the latter was down 14 per cent YTD.