![]() This means the companies whose stock price dropped significantly are automatically replaced by emerging stocks that would have increased in market cap. Through the rebalancing process, NIFTY 100 removes companies that would have fallen in market cap and adds companies whose market cap has grown larger than them. The index does a rebalancing on a semi-annual basis in June and December every year. Similarly, both the banks’ individual weight in NIFTY 100 is less than Reliance Industries’ weight whose market cap is around Rs. 8.5 lakh crore, has a slightly higher weight in the index, as against Kotak Mahindra Bank, whose market cap is around Rs. The higher the market cap of a company, the higher its weightage in the NIFTY 100 index.įor instance, HDFC Bank, whose market cap as of August 31, 2021, is around Rs. This is because a company’s weightage in the NIFTY 100 index is linked to its market cap. While 100 large-cap companies comprise the NIFTY 100 index, each of the companies has a different weightage in the index. ![]() Here all the shares refer to both active shares readily available in the market and inactive shares such as those stocks held by promoters or the government. This full market capitalization is calculated by multiplying a company’s stock price with all of its shares. ![]() NIFTY 100 index is a basket of India’s 100 large-cap companies in terms of full market capitalization. In addition, we will address if investing in the NIFTY 100 is exactly the same as investing in NIFTY 50 and NIFTY Next 50 separately. In this blog, we will explain all the three indices in detail and look at how they have performed in the past to help you make better-informed investment decisions. While all 3 of them are large-cap indices, they are pretty different from one another in how they have been constructed. However, if you have also warmed up to the idea of including low-cost Large Cap Index Funds in your portfolio, there are three indices that you should know about – NIFTY 50, NIFTY 100, and NIFTY Next 50. In the last few years, Large Cap Index Funds have become quite popular among Mutual Fund investors.
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