Nifty50 Composition: Weightage of private banks up nearly 1% in January, while IT down 1.5% MoM; SBI biggest gainer among stocks

Private lenders weightage in the Nifty Index has increased by around 1 per cent, while information and technology’s weightage declined by over 1.5 per cent in January on the month-on-month basis, according to the domestic brokerage house Motilal Oswal Financial Service market outlook report.

The report stated, “IT’s weight in the Nifty declined 160 basis points to 17.5 per cent in January 2022 from 19.1 per cent in December 2021 and the weightage of Private Banks, meanwhile, increased 90 basis points to 22.8 per cent in January 2022 versus 21.9 per cent in the previous month.”

The Consumer sector weightage has now declined to 9.1 per cent of the overall Nifty weight, the report added decoding the overall sectors contribution in the benchmark index.

While the Auto’s weight has increased gradually by 40 basis points to 5.4 per cent in January 2022 as compared to 5 per cent in the earlier month. Similarly, the weightage of metals, cement, and capital goods have remained constant MoM basis, the report added.

In the stocks category, Reliance Industries which carries maximum weightage in Nifty index has also shown marginal growth in weightage by about 10 basis points to 10.9 per cent in January 2022 to 10.8 per cent in December 2021, the report mentioned.

The stock of Reliance Industries gained nearly 1 per cent to Rs 2397.4 per share on the BSE intraday.

State Bank of India has been the biggest gainer in term of weightage increment, as the India’s largest lender’s weight in Nifty Index grew by almost 1 per cent (90 basis points) from December 2020 levels of 1.8 per cent to 2.7 per cent in January 2022, the report pointed out.

The stock price of SBI surged over 1.5 per cent to Rs 534.8 per share on the BSE intraday.

With economic recovery taking pace, the banks have been started reporting better than pre-covid levels quarterly earnings as Motilal Oswal in its third quarter earnings review had noted that the overall banking sector, especially private lenders asset quality have been improving gradually.