HDFC Bank now has more weight than the combined weight of India’s top five IT companies in the Nifty50 as the industry continues to decline. The bank’s 13.02% index share contrasts with the combined 9.9% of the IT giants, underscoring their poor performance in the face of global headwinds and earnings challenges.
In contrast, the index has increased due to financial and energy firms, countering the drag from IT. The industry is still facing challenges from delayed IT budgets, pricing pressures, and global concerns.
With 4.59% of the market, Infosys is the industry leader. TCS (2.72%), HCL Technologies (1.34%), Tech Mahindra (0.81%), and Wipro (0.62%) are next in line.
The Nifty IT index dropped 18% in the last year, from its top of 46,088 to 35,258.
The index is dominated by financials, with Reliance Industries (8.29%), ICICI Bank (8.42%), and HDFC Bank (13.24%) at the top. Axis Bank (3.15%), Kotak Mahindra Bank (2.65%), Bajaj Finance (2.38%), State Bank of India (3.04%), and Bajaj Finserv (1.02%) are further noteworthy banking and finance participants. SBI Life (0.66%) and HDFC Life (0.63%), two insurance companies, make lesser but consistent contributions.
FMCG and consumer stocks are also quite important. Hindustan Unilever is at 1.95%, Titan is at 1.14%, Nestle India is at 0.74%, Bharti Airtel is at 4.51%, and Tata Consumer Products is at 0.64%.
The index is made more stable by the energy and heavy industries. Important participants include Coal India (0.77%), NTPC (1.34%), ONGC (0.84%), Adani Enterprises (0.58%), Adani Ports (0.91%), and JSW Steel (0.89%). UltraTech Cement contributes 1.24%, Grasim Industries 0.85%, and Larsen & Toubro 3.79%.
With Apollo Hospitals (0.69%), Dr. Reddy’s Laboratories (0.64%), Cipla (0.74%), Sun Pharma (1.54%), and Max Healthcare (0.74%), the healthcare and pharmaceutical industries continue to be moderately represented.
Bajaj Auto (0.90%), Eicher Motors (0.83%), Maruti Suzuki (1.86%), Tata Motors (1.26%), and Mahindra & Mahindra (2.77%) are among the engineering and automotive companies.
Titan (1.14%), Power Grid (1.14%), ITC (3.19%), and Eternal Ltd (2.05%) are more noteworthy contributors.
