What is Nifty Metal
The NIFTY Metal Index is designed to reflect the behaviour and performance of the Metals sector (including mining). The NIFTY Metal Index comprises of maximum 15 stocks that are listed on the National Stock Exchange (NSE). NIFTY Metal Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value. NIFTY Metal Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Nifty Metal Companies List and its Weightage (31/10/2024)
Sl No. | Company Name | Industry | Symbol | Weightage |
1 | Tata Steel Ltd. | Metals & Mining | TATASTEEL | 18.78% |
2 | Hindalco Industries Ltd. | Metals & Mining | HINDALCO | 15.23% |
3 | JSW Steel Ltd. | Metals & Mining | JSWSTEEL | 14.10% |
4 | Vedanta Ltd. | Metals & Mining | VEDL | 12.00% |
5 | Adani Enterprises Ltd. | Metals & Mining | ADANIENT | 10.58% |
6 | Jindal Steel & Power Ltd. | Metals & Mining | JINDALSTEL | 5.33% |
7 | APL Apollo Tubes Ltd. | Capital Goods | APLAPOLLO | 4.19% |
8 | NMDC Ltd. | Metals & Mining | NMDC | 3.89% |
9 | Jindal Stainless Ltd. | Metals & Mining | JSL | 3.36% |
10 | National Aluminium Co. Ltd. | Metals & Mining | NATIONALUM | 3.11% |
11 | Steel Authority of India Ltd. | Metals & Mining | SAIL | 2.55% |
12 | Hindustan Zinc Ltd. | Metals & Mining | HINDZINC | 2.51% |
13 | Hindustan Copper Ltd. | Metals & Mining | HINDCOPPER | 1.47% |
14 | Ratnamani Metals & Tubes Ltd. | Capital Goods | RATNAMANI | 1.45% |
15 | Welspun Corp Ltd. | Capital Goods | WELCORP | 1.45% |
Nifty Metal Index Fund and Nifty Metal ETF
In the current time there is no Nifty Metal Index Fund but there are Nifty Metal ETFs whose name is given below.
Sl No. | Name | Index Fund/ETF |
1 | ICICI Pru Nifty Metal ETF | ETF |
2 | Mirae Asset Nifty Metal ETF | ETF |
How Nifty Metal Stocks are Selected
Eligibility Criteria for Selection of Constituent Stocks
i. Companies should form part of NIFTY 500 at the time of review. In case, the number of eligible stocks representing a particular sector within NIFTY 500 falls below 10, then deficit number of stocks shall be selected from the universe of stocks ranked within top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used for index rebalancing of NIFTY 500.
ii. Companies should form a part of the Metals sector.
iii. The company's trading frequency should be at least 90% in the last six months.
iv. The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
v. Final selection of companies shall be done based on the free-float market capitalization.
vi. Weightage of each stock in the index is calculated based on its free-float market capitalization such that no single stock shall be more than 33% and weightage of top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing.
Index Re-Balancing
Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change.
Index Governance
A professional team at IISL manages NIFTY Metal Index. There is a three-tier governance structure comprising the Board of Directors of IISL, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee.
