Nifty IT Index

The Nifty IT Index is designed to capture the performance of Indian information technology companies. The Nifty IT Index comprises 10 companies listed on the National Stock Exchange (NSE).

About Nifty IT Index

The Nifty IT Index is computed using the free-float market capitalisation method, wherein the level of the index reflects the total free-float market value of all the stocks in the index relative to a particular base market capitalisation value. The base date is January 1, 1996 and the original base value of 1,000 was revised to 100 from May 28, 2004. The index follows a periodic capped free-float methodology to ensure balanced representation across constituent companies within the IT sector. An index variant, the Nifty IT Total Returns Index, is also available for tracking total returns including dividend distributions. The index is managed by a professional team under a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee. As of October 31, 2025, the index comprises 10 constituents and is calculated in real-time during market hours.

Uses of Nifty IT Index

The Nifty IT Index can be used for benchmarking fund portfolios, launching of index funds, ETFs, and structured products. The index provides investors and market intermediaries with a benchmark to track the performance of India’s information technology sector.

Launch Date and Base Date of Nifty IT Index

The Nifty IT Index has a base date of January 1, 1996, and a base value of 1,000 (revised to 100 from May 28, 2004).

Nifty IT Index Rebalancing

The index is rebalanced on a semi-annual basis. The cut-off dates are January 31 and July 31 of each year, using average data for the six months ending the cut-off date. Four weeks’ prior notice is given to the market before changes are implemented.

Top Companies and Weightage of Nifty IT Index

As of October 31, 2025, the top constituents of the Nifty IT Index by weightage are:

• Infosys Ltd. — 28.26%
• Tata Consultancy Services Ltd. — 21.84%
• HCL Technologies Ltd. — 11.42%
• Tech Mahindra Ltd. — 9.01%
• Wipro Ltd. — 6.84%
• Persistent Systems Ltd. — 6.32%
• Coforge Ltd. — 5.92%
• LTIMindtree Ltd. — 5.25%
• MphasiS Ltd. — 3.13%
• Oracle Financial Services Software Ltd. — 2.01%

Nifty IT Index Methodology

Eligibility Criteria

• Companies should form part of Nifty 500 at the time of review. If eligible stocks in the sector within Nifty 500 are fewer than 10, deficit stocks are chosen from the top 800 (by turnover and capitalisation over six months).
• Companies must form part of the IT sector.
• At least 90% trading frequency in the past six months is required.
• Minimum listing history of one month as on the cut-off date.
• Final selection of 10 companies is based on free-float market capitalisation, with preference to those tradable in the NSE’s Futures & Options segment.
• No single stock to exceed 33% weight; top 3 stocks cumulatively not to exceed 62% at the time of rebalancing.

Calculation Method

The index uses the periodic capped free-float methodology. The calculation frequency is real-time, with continuous updates during market hours.

Performance Metrics

As of October 31, 2025, the index demonstrated the following:

Returns (Total Return Index):

• Quarter-to-date (QTD): -17.60% (absolute)
• Year-to-date (YTD): -9.48% (absolute)
• 1 Year: 13.53% (absolute)
• 5 Years: 21.91% (CAGR)
• Since Inception: -15.60% (CAGR)

Fundamentals:

• Price-to-Earnings (P/E) Ratio: 25.31
• Price-to-Book (P/B) Ratio: 6.68
• Dividend Yield: 3.09%

Risk Metrics (based on Price Return Index):

• Standard Deviation (annualised): 11.29%
• Beta (relative to Nifty 50): 1.13
• Correlation with Nifty 50: 0.97