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Shocking Weightage of IT Sector in Indian Stock Market  – Trading Gyani

Weightage of Various IT Companies in the IT Sector

As it is Nifty and Sensex for the Indian Economy. There is also an average for a particular sector in which the companies related to that sector are included with different importance and weightage. There are examples like BankNifty for Financial Sector, CNXIT for Information Technology, CNX AUTO for automobile companies, CNX PHARMA for healthcare companies, CNX ENERGY for power companies, Etc. Likewise, CNXIT, a top IT Companies in India included with various weightage. So we understand in detail about that company and their importance & weightage.

Weightage Of IT Sector in CNXIT, Nifty, Sensex & Economy
  1. Tata Consultancy Services (TCS)

Tata Consultancy Service is one the biggest IT Company in India and it consists of a weightage of 28.78% in CNXIT (Nifty IT). Almost 30% chart of TCS and CNX IT match.

2. Infosys (INFY)

Infosys is owned by Narayan Murthy and it is the second biggest company in the IT Sector according to the market cap. Infosys contains 25.82% weightage and importance in Nifty IT.

3. HCL Technologies (HCLTECH)

HCL Technologies an information technology and consulting company, it is also a subsidiary company of the HCL enterprise. HCL Technologies contains weightage and importance of 8.95% in the movement of CNXIT.

4. Wipro Ltd. (WIPRO)

Wipro was founded by Azim Premji in Maharashtra, Wipro is counted as one of the most successful multibagger stocks and it has contributed 8.18% to the IT Sector index. Wipro also serves their service all around the world like the U.S, Canada, Germany, Etc.

5. Tech Mahindra (TECHM)

Tech Mahindra is also like other IT Companies, it is also an Indian multi-national company and serves services like Consulting and Technology Services. Tech Mahindra is the company of Mahindra Group and it contributes 7.97% to the performance of CNXIT.

6. MindTree Ltd. (MINDTREE)

Mindtree is a company of Larsen & Turbo group and it is started in 1999, it gives employment to more than 38,000 people and it weightage and importance is 5.02% in the IT Sector.

The remaining 15.29% of weightage is contributed by different Indian IT Companies. MphasiS (MPHASIS) contribute  5.16% , Larsen & Turbo Infotech Ltd. (LTI) contribute 4.85%, Coforge Ltd. (COFORGE) contribute 2.81% and L&T Technology Services Ltd. (LTTS) weightage  2.47%. Generally, the distribution of weightage is not distributed equally but it is given after checking some measures. The weightage of TCS and Infosys is highest because it is one of the biggest companies in India and particularly in IT Sector. So by this, the deserving company gets their importance and weightage as per its contribution to the economy. By this, all major Indian IT Companies’ weightage is included in the Nifty IT. So, by analyzing only Nifty IT (CNXIT) investors get an idea of the whole IT Sector’s current situation.

Weightage of the IT Sector in Nifty

Nifty also represents the Indian Stock Market and the Indian Economy. Nifty includes the top 50 companies’ stocks of India according to Market Cap.  That 50 companies cover almost all industries of India, that’s why it represents the Indian economy. The industries included in the Nifty Average are Financial Service, Information Technology, Oil Gas & Consumable Fuels, Healthcare, Consumer Durable, Construction, Metal Mining, Telecommunication, Construction Material, Power, Service, Chemical, Automobile & Auto components & Fast Moving Consumer Goods. IT (Information Technology) Sector has the second highest weightage with 14.22% and at the top is financial service with 36.96%. The IT Companies which is included in Nifty are Wipro, Infosys, TCS (Tata Consultancy Service), Mphasis, HCL Technologies, Tech Mahindra, Larsen & Turbo InfoTech, Coforge, Persistent System, and L&T Technology Service. Among these companies, there are different weightage and importance of this company as Infosys (6.90%), TCS (4.24%), Wipro (0.79%), HCL Technologies (1.30%), Etc. Thus as we see that it contributes more than 14% which means the development of the IT Sector is necessary for the better growth of Nifty and the Indian Economy.

Weightage Of IT Sector In Nifty

Weightage of the IT Sector in Sensex

The Sensex is the representative of the Indian stock market. Sensex includes all sectors of the economy like Integrated Oil & Gas, Banks, IT Consulting & Software, Personal Products, Tobacco Products, Housing Finance, Construction & Engineering, Telecom Services, Holding Companies, Paints, Cars & Utility Services, Pharmaceuticals, Iron & Steel, Cement & Cement Products and Packed Foods. All industries have their different importance and Weightage in Sensex. About IT Sector contributes 15.5%, Bank contributes 31.2% and Integrated Oil & Gas contributes 12.7%. The IT companies included in Sensex are TCS(Tata Consultancy Service), Infosys, Wipro, HCL Technology, and Tech Mahindra. Sensex on average represents the Indian Stock Market in which the IT Sector has there own importance, and the growth of the IT Sector is important for the Indian Stock Market.

Weightage of the IT Sector in the Indian Economy

IT(Information Technology) companies have a wide scope that provides services like Outsourcing, software development, Information Technology service, consulting, Etc. Information Technology in India contributes 8% to Nation’s GDP, this data is from 2020. The estimation is that the contribution of the IT Sector increased to 15% by 2022 end which means the estimated revenue of IT Companies in 2022 is US 220 Billion dollars.

The main customer base of IT companies in the U.S and Other foreign countries. The estimation is done on the domestic revenue and export revenue which is 50 Billion Dollars from Indian and the revenue from exported services is 170 Billion dollars. As the main asset of IT Companies is Human Or Employee, so it contributes a huge in the Employment in India. The total number of direct employees engaged in the IT Sector is more than 50 Lakh. In India, there is a huge hub of IT Companies in Bengaluru. Bengaluru is the biggest IT hub of India, the head office and office of companies Wipro, Infosys, Mindtree, TCS (Tata Consultancy Service), HCL Technologies, Oracle, Etc are located. Indian IT Companies mainly function in Bengaluru and other cities like Hyderabad, Chennai, Pune, Ahmedabad, Etc. IT Sector will become the huge sector of the nation by 2025. As we see that IT Sector contributes 8% of the economy so the growth of its IT Sector is necessary for the growth of the Indian Economy.

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