Nifty IT

Nifty IT Index Today

The Nifty IT is a key sectoral index on the National Stock Exchange (NSE) that tracks the performance of top IT companies in India. It includes well-known large-cap companies like Infosys, TCS, Wipro, and HCL Tech. The index is a real-time index of 10 tradable IT stocks engaged in information technology. NSE Indices Limited manages it and includes industries such as computer software, consulting, hardware, education, IT enabled services, and software products. The NIFTY IT Total Returns Index is a variant with practical applications for launching index funds, ETFs, structured investment products, and benchmarking fund portfolios.

How is the Nifty IT Index NSE Value Calculated?

The Nifty IT share price is made up of several equities held by IT businesses in India. When determining the Nifty IT index value, the prices of these shares are taken into account. The following formula is used to determine the Nifty IT's index value based on these values:

Index Value = (Current Index Free Float Market Capitalisation / Base Free Float Market Capitalisation of Index) * Base Index Value 

Every year on January 31st and July 31st, the NIFTY IT index is reevaluated semi-annually using six months' worth of data. With four weeks' notice given to the market, the replacement of stocks in NIFTY IT (if any) takes effect on the final trading day of March and September.

How are Stocks Selected for an Included in the Nifty IT?

Nifty IT Stocks Selection Process:

• Eligibility criteria for inclusion, Companies must meet the selection criteria.
• Companies ranked descending by average free-float market capitalisation.
• Final selection of 10 companies based on free-float market capitalisation.
• Preference is given to companies trading in NSE’s Futures & Options segment.
• Weightage, No stock exceeds 33% in the index, top 3 stocks not more than 62%.
• Includement, Companies with free-float market capitalisation at least 1.5 times the smallest index constituent.

How To Invest in Nifty IT Stocks?

• Invest in ETFs or exchange-traded funds that track the Nifty IT index.
• Create a list of all Nifty IT Index stocks and buy them in the same proportion as the index.
• Keep track of all stocks and rebalance them as per the index.