Nifty IT Share Price

The Nifty IT index is a stock market index that measures the performance of the Information Technology (IT) sector in India. It is a subset of the Nifty 50 index, representing the top 50 companies listed on India's National Stock Exchange (NSE). The Nifty IT index comprises the top 10 IT companies listed on the NSE, based on their market capitalisation. These companies are among the largest IT services and software providers in India, and some of them are also global players in their respective domains.

The Nifty IT index is a market capitalization-weighted index, which means that the weightage of each company in the index is proportional to its market capitalization. This implies that the performance of larger companies has a greater impact on the index than smaller companies. The Nifty IT index is an important benchmark for investors interested in investing in the IT sector in India. It provides a broad view of the performance of the IT industry, which is a key sector of the Indian economy. The index is also a reference point for index funds and exchange-traded funds (ETFs) that track the IT sector in India.

The performance of the Nifty IT index is influenced by various factors, including the global trends in the IT industry, the demand for IT services and software, and the performance of individual companies. The index tends to be volatile, as it is sensitive to news and developments in the IT sector. For instance, the outbreak of the COVID-19 pandemic in early 2020 had a significant impact on the IT industry, as many companies had to switch to remote work and adapt to new ways of working. As a result, the Nifty IT index experienced significant fluctuations during the pandemic.

What are the eligibility criteria for the selection of constituent stocks under Nifty IT?

1. Companies should be a part of the Nifty 500. If the number of eligible stocks representing a particular sector within the Nifty 500 falls below 10, then the deficit number of stocks are selected from the universe of stocks ranked within the top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used for index rebalancing of Nifty 500.
2. Companies should be a part of the IT sector.
3. The trading frequency of the company should be at least 90% in the last six months.
4. The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index if it fulfils the normal eligibility criteria for the index for a 3-month period instead of a 6-month period.
5. The final selection of 10 companies is done based on the free-float market capitalization. A preference shall be given to companies that are available for trading in NSE’s Futures & Options segment at the time of final selection.
6. The weightage of each stock in the index is calculated based on its free-float market capitalization such that no single stock shall be more than 33% and the weightage of the top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing.