Nifty dominance by top stocks at a record, four sectors grab lion's share

Top-5 and 10 stocks account for 42% and 62% respectively; up from 37% and 56% two year ago

The dominance of top stocks on the Nifty50 index touched an all-time high, with the top five stocks comprising nearly 42 per cent of the index weighting and the top 10 accounting for more than 62 per cent.

The respective weighting stood at 37.1 per cent and 56.4 per cent two years ago when polarisation — a phenomenon where money chases select stocks — began to gain ground.  

The weighting for the Nifty50 components are computed using free-float market capitalisation.

Sector concentration has inched up too, with four sectors — financial services, oil and gas, information technology, and consumer goods — comprising nearly