Nifty Tata Group 25% Cap

The Nifty Tata Group 25 Cap is an index that represents the performance of select companies from the Tata Group conglomerate listed on the National Stock Exchange (NSE). This index is designed to track the performance of Tata Group companies with a focus on market capitalization. Investors interested in tapping into the potential of this renowned conglomerate can explore investment opportunities through this index.
 

The Nifty Tata Group 25 Cap index is a market capitalization-weighted index that tracks the performance of 25 select companies from the Tata Group conglomerate. These companies span various sectors such as automobiles, information technology, steel, chemicals, and more. The index provides investors with an opportunity to participate in the growth and performance of Tata Group companies through a single investment vehicle.

The eligibility criteria for the selection of constituent stocks for the Nifty Tata Group 25 Cap index are as follows:

i. NSE Listing: Companies must be listed on the National Stock Exchange of India Ltd. (NSE) to be considered for inclusion in the index.

ii. Tata Corporate Group: Eligible companies should be part of the Tata corporate group, ensuring that only companies associated with Tata Group conglomerate are included.

iii. Market Capitalization and Turnover: Companies must rank within the top 800 by average full market capitalization and average daily turnover over the last six months. This criterion ensures that only companies with sufficient market activity and size are included in the index.

iv. New Listings: Companies that undergo an IPO or new listing will be eligible for inclusion in the index after meeting the eligibility criteria for a three-month period.

v. Free Float Market Capitalization: The final selection of 10 companies is based on free float market capitalization, ensuring that the index represents companies with significant market value and liquidity.

vi. Weightage Cap: The weightage of each stock in the index is calculated based on its free-float market capitalization, with no single stock allowed to exceed 25% of the index's total weightage. Additionally, the cumulative weightage of the top three stocks cannot exceed 62% at the time of rebalancing.

These criteria ensure that the Nifty Tata Group 25 Cap index includes companies that meet specific requirements related to market presence, association with the Tata Group, liquidity, and market capitalization.
 

Investing in the Nifty Tata Group 25 Cap index can be done through various financial instruments such as index funds, exchange-traded funds (ETFs), or structured products that track the performance of the index. Investors can explore investment opportunities in the Nifty Tata Group 25 Cap index for various purposes, including benchmarking fund portfolios, launching index funds, ETFs, and structured products.
 

The Nifty Tata Group 25 Cap index comprises companies from sectors such as Information Technology, Automobile and Auto Components, Consumer Durables, Consumer Services, Metals & Mining, Fast Moving Consumer Goods, and Power. The top constituents by weightage include Tata Consultancy Services, Tata Motors, Titan Company, Tata Steel, Trent, Tata Consumer Products, Tata Power, Indian Hotels, Tata Motors DVR, and Tata Elxsi.
 

The Nifty Tata Group 25 Cap index is rebalanced semi-annually, with index constituents reviewed based on average data for six months ending the cut-off period as on January 31 and July 31 respectively. Exclusion from the index may occur due to suspension, delisting, or corporate events such as a scheme of arrangement. The index is governed by a professional team comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee.
 

The Nifty Tata Group 25 Cap index offers investors a unique opportunity to gain exposure to select companies within the Tata Group conglomerate. With stringent selection criteria, diversified portfolio characteristics, and transparent governance, this index serves as a valuable benchmark for tracking the performance of Tata Group companies. Investors can explore investment opportunities in the Nifty Tata Group 25 Cap index to diversify their portfolios and potentially enhance their returns.

Research companies with high Return on Equity (RoE) and stable growth prospects for top performers.

Analyze fundamentals, industry trends, management quality, and valuation metrics to identify top-performing stocks from Nifty Tata Group 25% Cap.

As of 29th April, 2024, the index value of the Nifty Tata Group 25% Cap is 16,378.35.

Several stocks in the Nifty Tata Group 25% Cap index have shown significant profit growth. Tata Consultancy Services Ltd., Tata Motors Ltd., Titan Company Ltd. and Tata Steel Ltd. are some examples.