Other Nifty sectoral indices

In all of the previous chapters in this module of Smart Money, we’ve only seen a few of the major Nifty sectoral indices. However, they’re not the only Nifty indices out there. There are several other relatively minor sectoral indices that the NSE has designed and constructed. And that’s exactly what we’re going to be looking at in this final chapter of this module. Here’s an overview of the other NSE indices or Nifty sectoral indices.

1. Nifty Consumer Durables index

Consumer durables are basically a class of goods that can last for quite a long period of time and therefore are not required to be frequently purchased. Refrigerators, air conditioners, fans, and kitchen appliances, among others are a few examples of consumer durable products. 

The Nifty Consumer Durables index was designed by the National Stock Exchange to track the performance of the stocks of companies operating under the consumer durables sector. The index comprises 15 companies that are involved in the design, manufacture, and the subsequent sale of consumer durable products. Here’s a list of the constituents of the index.

1. Bata India
2. Blue Star
3. Crompton Greaves Consumer Electricals
4. Dixon Technologies (India)
5. Havells India
6. Orient Electric
7. Rajesh Exports
8. Relaxo Footwears
9. Symphony
10. TTK Prestige
11. Titan Company
12. V-Guard Industries
13. V.I.P. Industries
14. Voltas
15. Whirlpool of India

2. Nifty Healthcare index

Unlike Nifty Pharma that features only pharmaceutical companies, the Nifty Healthcare index encompasses both pharmaceutical companies and healthcare service providers as well. In a way, Nifty Healthcare is a broader and a more comprehensive index that gives a more wholesome picture of the performance of the healthcare sector at large. The index has around 20 constituents, all of which are listed below. 

1. Abbott India
2. Alkem Laboratories
3. Apollo Hospitals Enterprise
4. Aurobindo Pharma 
5. Biocon
6. Cadila Healthcare 
7. Cipla 
8. Divi's Laboratories 
9. Dr. Lal Path Labs
10. Dr. Reddy's Laboratories 
11. Fortis Healthcare
12. Glaxosmithkline Pharmaceuticals
13. Glenmark Pharmaceuticals
14. Ipca Laboratories
15. Lupin
16. NATCO Pharma
17. Pfizer
18. Sanofi India
19. Sun Pharmaceutical Industries
20. Torrent Pharmaceuticals

As you can see from this list, the Nifty Healthcare index consists of all the 10 companies present in the Nifty Pharma index, in addition to a few others. 

3. Nifty Media index

The Nifty Media index is composed of 10 of the largest names in the media and entertainment industry in India. It includes companies operating multiplex theatres, companies involved in printing and publishing, TV and news channels, and satellite TV service providers as well. 

Media and entertainment is a burgeoning sector in India with significant growth opportunities. And so, the NSE came up with the Nifty Media index to track and capture the performance of the sector. Here’s a quick overview of the list of companies under this index. 

1. D.B.Corp
2. Dish TV India 
3. Hathway Cable & Datacom 
4. Inox Leisure
5. Jagran Prakashan 
6. PVR
7. Sun TV Network 
8. TV Today Network 
9. TV18 Broadcast
10. Zee Entertainment Enterprises 

4. Nifty Metal index

To accurately capture the performance of the base metal sector, the National Stock Exchange launched the Nifty Metal index. The index consists of 15 of the largest entities in the metal sector including companies that explore, discover, mine, refine, and subsequently sell base metals. 

That said, here’s something that you should know. The Nifty Metal index also includes a coal mining and refining company - Coal India - as a part of its list of constituents, despite coal not being a metal. Now, Let’s take a look at the constituents of the Nifty Metal index.    

1. APL Apollo Tubes
2. Coal India
3. Hindalco Industries
4. Hindustan Copper
5. Hindustan Zinc
6. JSW Steel
7. Jindal Steel & Power
8. MOIL
9. Mishra Dhatu Nigam
10. NMDC
11. National Aluminium Co.
12. Ratnamani Metals & Tubes
13. Steel Authority of India
14. Tata Steel
15. Welspun Corp 

5. Nifty Private Bank index

As the name itself implies, Nifty Private Bank is a sectoral index that consists of private sector banks that are listed on the National Stock Exchange. The index comprises 10 of the largest private sector banks and is widely used as a benchmarking tool by mutual fund houses. Here’s a quick look at the 10 constituents of the index. 

1. Axis Bank
2. Bandhan Bank 
3. City Union Bank 
4. Federal Bank 
5. HDFC Bank 
6. ICICI Bank 
7. IDFC First Bank 
8. IndusInd Bank
9. Kotak Mahindra Bank
10. RBL Bank

As you can see, many of the constituents in this list also make an appearance on the Nifty Bank index as well. 

6. Nifty PSU Bank index

Just like how it is important to measure and track the performance of private sector banks in India, it is crucial to keep an eye on the public sector banks as well. To this effect, the NSE launched the Nifty PSU Bank index, which consists of 12 of the largest public sector banks in terms of market capitalization. The constituents of this index are listed below.  

1. Bank of Baroda
2. Bank of India
3. Bank of Maharashtra
4. Canara Bank
5. Central Bank of India
6. Indian Bank
7. Indian Overseas Bank 
8. Jammu & Kashmir Bank
9. Punjab National Bank
10. State Bank of India
11. UCO Bank
12. Union Bank of India

7. Nifty Realty index

Over the past few years, the purchasing power of Indians in general has been witnessing an increase. In addition to that, the advent of housing finance companies and relaxations in the eligibility criteria have led to the elimination of funding concerns. This has led to a tremendous growth in the real estate sector.

And so, to measure the growth of the real estate sector, the NSE came up with the Nifty Realty sectoral index. The index consists of 10 of the largest companies in terms of market capitalization operating under the real estate sector. Here’s a look at the index’s list of constituents. 

1. Brigade Enterprises 
2. DLF
3. Godrej Properties
4. Indiabulls Real Estate
5. Oberoi Realty
6. Omaxe
7. Phoenix Mills
8. Prestige Estates Projects
9. Sobha
10. Sunteck Realty

Wrapping up

And, that’s a wrap on the other NSE indices! With this chapter, we’ve successfully completed the entire module on sectoral indices. Now, all that’s left is for us to cover the various concepts of marketing, strategy, and how to pick stocks with the right strategy, which is what we will be doing in the next module of Smart Money. Until then, stay tuned!

A quick recap

• There are several other relatively minor sectoral indices that the NSE has designed and constructed. 
• The Nifty Consumer Durables index was designed by the National Stock Exchange to track the performance of the stocks of companies operating under the consumer durables sector. The index comprises 15 companies. 
• The Nifty Healthcare index encompasses both pharmaceutical companies and healthcare service providers as well. The index has around 20 constituents
• The Nifty Media index is composed of 10 of the largest names in the media and entertainment industry in India. 
• To accurately capture the performance of the base metal sector, the National Stock Exchange launched the Nifty Metal index. The index consists of 15 of the largest entities in the metal sector.
• The Nifty Private Bank is a sectoral index that consists of private sector banks that are listed on the National Stock Exchange. The index comprises 10 of the largest private sector banks.
• The NSE also launched the Nifty PSU Bank index, which consists of 12 of the largest public sector banks in terms of market capitalization.
• To measure the growth of the real estate sector, the NSE came up with the Nifty Realty sectoral index. The index consists of 10 of the largest companies in terms of market capitalization.