Nifty Top 10 Equal Weight Index – Are Valuations Attractive for Long-Term Investors?
About Nifty Top 10 Equal Weight Index
The Nifty Top 10 Equal Weight Index comprises ten of the largest and most liquid companies listed on the NSE, spread across sectors such as IT, banking, telecom, and industrials. Unlike market-cap weighted indices, this one allocates equal weight to each stock, ensuring diversification and reducing concentration risk. It is a useful benchmark for investors seeking balanced exposure to India’s top companies.
Valuation Overview
Recent analysis shows that nearly 70% of the portfolio is currently available at or below its historical averages. This indicates that despite overall market volatility, several blue-chip companies remain attractively priced. The table below summarizes the valuation metrics of these top 10 companies compared to their long-term averages.
| Company | Valuation Matrix | TTM PE / Ratio | 10 Yr Avg | Post GFC Avg | Valuation |
|---|---|---|---|---|---|
| Infosys | P/E | 23.0 | 23.3 | 22.1 | Buyback, below average |
| ITC | P/E | 26.0 | 26.2 | 28.3 | At average |
| Reliance Industries | P/E | 25.3 | 23.1 | 20.3 | Higher than avg |
| TCS | P/E | 22.9 | 26.9 | 25.3 | Buyback, below average |
Market Insights
Infosys and TCS are trading at valuations below their 10-year average, supported by buybacks. Large banks like HDFC Bank and Kotak Mahindra Bank are trading cheaper compared to their historical averages, presenting potential entry points. However, Reliance Industries, ICICI Bank, and L&T appear overvalued relative to past benchmarks.
For Traders
For traders looking to navigate this volatile phase can make use of tips whose link are given below:
👉 Nifty Tip |
BankNifty Tip
📌 Access more free market content at Indian-Share-Tips.com, a SEBI registered advisory platform offering professional insights.
Investor Takeaway
With 70% of the portfolio trading at or below average valuations, long-term investors may find selective opportunities in IT and banking sectors. However, caution is warranted for stocks trading above historical ranges such as Reliance and L&T. A disciplined, staggered investment approach may help balance risk and reward.
Disclaimer
This article is for informational purposes only and not an investment recommendation. Investors are advised to consult with their financial advisor and review SEBI guidelines before making investment decisions.
