Nifty IT

The NIFTY IT or Information Technology index can easily capture the performance of all the Indian IT firms effectively. This NIFTY index consists of 10 IT companies, and all of them are found under the National Stock Exchange of India.

The NIFTY Information Technology index is computed through the free float market capitalization technique.

It also has a base of January 1st, 1996, which is indexed to a base value of 1000, and the index level reflects the overall free float market value of the stocks. The index base value has been revised to 100 from 1000, and it took effect on May 28th, 2004.

The Nifty Information Technology Index can be easily utilized for countless reasons, such as launching index funds and benchmarking the fund portfolios, structured products, and ETFs.
 

Let’s take a look at the eligibility criteria for Nifty Information Technology:

● All companies must create a part of NIFTY 500 during the review time. If the amount of all the eligible stocks of a specific section under the NIFTY 500 goes below 10, a particular set of stocks will be picked from the universe of stocks. All these stocks are ranked under the top 800 according to the average market capitalization and turnover of the past 6 month’s data.

● All organizations should fall under the Information Technology Sector

● The trading frequency of the IT companies must be around 90% within the past 6 months. Companies that carry an IPO will certainly be qualified for inclusion within the index. This can only happen when the index’s eligibility criteria are fulfilled within 3 months rather than 6 months.

● The final selection of all 10 IT companies will be conducted according to the free float market capitalization. All companies will get a preference, which is available for trading within the futures and options section of the NSE during the final selection.

● The weightage of all the stocks gets calculated according to the free float market capitalization. Doing so will prevent single stocks from being over 33%, and the weightage of the three main stocks is not over 62% during the rebalancing time.

When it comes to opting for the best stocks, you can utilize various criteria to reach the list of the best stocks that fall under the NIFTY Information Technology firm index. You can also take the help of the return ratios such as ROE or ROC, which will help pick the firms that have profitable growth.

If you wish to invest your funds in the NIFTY IT shares, you must first look for a good brokerage company online. There, you will find a list of NIFTY IT shares available. But before doing anything, you should complete the registration work, look for the NIFTY IT shares through the search box, and complete all the KYC-related formalities. Once everything is done, you can proceed further with your investing work.

The PE ratio of Nifty IT is determined after you divide the market price by its earnings per share. The PB ratio, on the other hand, gets evaluated when you divide the stock price for each share by its BVPS or Book Value Per Share.

There are several Nifty IT companies that have the highest revenue growth, which are Coforge Ltd, L&T Technology Service Ltd, Mphasis Ltd, and Persistent Systems Ltd.

If you wish to comprehend more about the stocks that perform extremely well under the Nifty IT index, you should look at a brokerage firm’s platform. There, you will certainly find the information you need.