There has been a noticeable change in the composition of the Nifty50 pack in the past decade - from the year 2010 to 2020, said brokerage firm Motilal Oswal.
"In the Nifty50 pack, as many as 30 companies are common between 2010 and 2020. So about 40 percent of components present in December 2010 are no longer part of the Nifty," said a note from Motilal Oswal Financial Services.
"The 30 common stocks present in Nifty contribute 82.5 percent of weight today against 83.7 percent in December 2010 – so broadly stable," the brokerage firm said.
As per the brokerage firm, prominent names that were part of Nifty in December 2020 but are no longer there are BHEL, Sterlite Industries, Jindal Steel, Ambuja, ACC, SAIL, DLF, Tata Power, IDFC, PNB, Cairn, Vedanta, Siemens, JP Associates, Rel Infra, RComm, Rel Power, Rel Capital, Suzlon and Ranbaxy.
The combined weight of these 20 stocks in December 2010 was 16.3 percent.
The 20 new stocks which were not a part of Nifty in December 2010 but were there as of December 2020 - Asian Paints, Britannia, Titan, Nestle, BAF, Bajaj Finserv, IndusInd, HDFC Life, SBI Life, Divis, Eicher Motors, Tech Mahindra, Ultratech, Shree Cement, Grasim, JSW Steel, Adani Ports, UPL, Coal India and IOCL.
The top five weights in Nifty in December 2010 were RIL, Infosys, ICICI Bank, L&T and HDFC.
In comparison, the top five weights in Nifty in December 2020 were RIL, HDFC Bank, Infosys, HDFC and ICICI Bank, Motilal Oswal said.
Sectors with the highest weight in Nifty in December 2010 were oil & gas (14.7 percent), private banks (14.5 percent), IT (14.3 percent), capital goods (8.7 percent), metals (8.4 percent). All these cumulatively contributed 60 percent.
In December 2020, sectors with the highest weight in Nifty are private banks (24.7 percent), IT (16.3 percent), oil & gas (12.5 percent), consumer (11.5 percent), non-banking financials (10.8 percent) that cumulatively contributed 76 percent, Motilal Oswal said.
As per the brokerage firm, sectors that gained the highest weight were private banks (1,020bps), consumer (470bps), NBFC (420bps), IT (200bps). The overall gain of these sectors was 21.1 percent.
On the flip side, sectors that lost the highest weight were metals (640bps), capital goods (610bps), PSU banks (310bps), utilities (240bps), auto (220bps), oil & gas (210bps). The overall loss of these sectors was 22.3 percent, Motilal Oswal said.
"In the decade - from 2010 to 2020 - the weight of BFSI increased from 26 percent to 39 percent while the weight of BSI + IT + consumer pack increased from 47 percent to 67 percent. The weight of metals + capital goods + utilities + oil & gas + real estate slumped from 37 percent to 19 percent," said Motilal Oswal.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.