Nifty Auto Weightage- The Indian automotive industry is one of the largest in the world with a production volume of over 23 million vehicles in FY2018. The industry is expected to grow at a CAGR of around 9% during FY2019-2023 to reach a production volume of around 32 million vehicles by FY2023. The automotive industry plays a significant role in the country’s economy, contributing around 7.1% to the country’s GDP in FY2019. The industry is also one of the largest employers in the country, providing direct and indirect employment to around 35 million people.
The automotive industry in India is primarily dependent on the passenger vehicle segment, which accounts for around 70% of the total production volume. The passenger vehicle segment is further divided into the passenger cars, utility vehicles, and vans segments. The commercial vehicle segment, which includes trucks and buses, accounts for the remaining 30% of the production volume.
The Indian automotive market is highly competitive with a large number of domestic and international players. The top 10 players in the Indian automotive market account for around 80% of the total sales. Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, and Honda are the leading players in the Indian automotive market.
The Indian automotive market is expected to continue growing at a strong pace in the coming years. The passenger vehicle segment is expected to grow at a CAGR of around 10% during FY2019-2023. The commercial vehicle segment is also expected to grow at a healthy pace, supported by the Government’s initiatives to boost the sector.
The Government of India has launched a number of initiatives to boost the automotive industry. These include the launch of the ‘Make in India’ campaign, the introduction of the Goods and Services Tax (GST), and the relaxation of foreign direct investment (FDI) norms. These initiatives are expected to provide a fillip to the industry and help it grow at a faster pace in the coming years.
1. The Importance Of Nifty Auto’s Weightage
The auto sector is the second largest sector in India and is one of the most important sectors in the Indian economy. The auto sector accounts for 7.1% of the country’s GDP and is one of the fastest-growing sectors in the country. The Indian auto sector is expected to grow at a CAGR of 9-10% over the next five years. The auto sector is a major contributor to the country’s employment and is expected to create nearly 12 million jobs by 2026.
The auto sector is also a major contributor to the government’s revenues. The auto sector is taxed at a rate of 28%, which is one of the highest in the world. The government collected Rs. 1.47 trillion in taxes from the auto sector in FY2017-18. The auto sector is a major consumer of steel, aluminum, copper, and rubber. The sector consumes nearly 60% of the country’s steel production. The auto sector is also one of the largest consumers of aluminum and copper.
The auto sector is a major contributor to the country’s foreign exchange earnings. The sector exports nearly US$40 billion worth of vehicles and components. The auto sector is the largest contributor to the country’s engineering exports. The auto sector is an important driver of the country’s economic growth. The sector is a major contributor to the country’s GDP and is expected to grow at a healthy pace in the coming years.
2. How Nifty Auto’s Weightage Affects The Market
The Nifty Auto index is a benchmark index for the Indian automobile sector. The index consists of 12 stocks from the automobile sector and is a subset of the Nifty 50 index. The index has a base value of 1000 and was launched on January 15, 2008. The index is currently managed by India Index Services and Products Ltd. (IISL), a subsidiary of NSE Indices Ltd.
The automobile sector is one of the most important sectors in the Indian economy. The sector contributes to around 7% of the country’s GDP and employs over 30 million people. The sector is also one of the largest consumers of steel, aluminum, and rubber.
The Indian automobile market is divided into four segments – passenger vehicles, commercial vehicles, two-wheelers, and three-wheelers. Passenger vehicles include cars, SUVs, and MUVs. Commercial vehicles include trucks, buses, and tempos. Two-wheelers include motorcycles, scooters, and mopeds. Three-wheelers include auto-rickshaws and goods carriers.
The Nifty Auto index consists of stocks of companies from all four segments of the automobile market. Some of the companies in the index are Maruti Suzuki, Bajaj Auto, Hero MotoCorp, Tata Motors, Ashok Leyland, and Eicher Motors.
The weightage of a stock in an index is determined by its market capitalization. The Nifty Auto index is a market capitalization-weighted index. This means that the bigger the market capitalization of a stock, the higher its weightage in the index.
As of June 30, 2020, the market capitalization of Maruti Suzuki was Rs. 6.4 trillion. This made it the biggest stock in the Nifty Auto index with a weightage of 27.4%. Bajaj Auto was the second biggest stock with a weightage of 13.7%. Hero MotoCorp was the third biggest stock with a weightage of 12.6%. The weightage of a stock in an index affects the index in two ways. Firstly, it affects the price of the index. If the price of a stock with a high weightage goes up, it will have a bigger impact
3. The Future Of Nifty Auto’s Weightage
As we all know, the automobile industry is one of the most important industries in the world. It is the backbone of many economies and employs millions of people. The future of the automobile industry is therefore of great importance.
The future of the automobile industry is likely to be very different from what it is today. The biggest change will be the shift to electric vehicles. Electric vehicles are much more efficient than petrol or diesel vehicles and produce zero emissions. This is good for the environment and will help to reduce air pollution.
The shift to electric vehicles will also have a big impact on the way the automobile industry works. For example, traditional car manufacturers will have to invest in new technologies and processes to produce electric vehicles. This will create new jobs and opportunities in the industry.
Another big change that is likely to happen in the future is the rise of autonomous vehicles. Autonomous vehicles are cars that can drive themselves without the need for a human driver. They are equipped with sensors and computers that allow them to navigate safely on the road.
The rise of autonomous vehicles will have a major impact on the automobile industry. For example, it will lead to the development of new technologies and the creation of new jobs. It will also change the way we use cars. For instance, we will be able to use cars for other purposes such as working or relaxing while the car drives itself.
The future of the automobile industry is therefore likely to be very different from what it is today. Electric vehicles and autonomous vehicles will have a major impact on the way the industry works. This will create new opportunities and jobs in the industry.
