Nifty constituents, over the last 15 years, have undergone a sea change to reflect the underlying changes in the economy. In a recent report, Gautam Duggad and Deven Mistry of Motilal Oswal Research (MOSL) suggest that the weight of financials has seen a secular rise in the benchmark indices, with banking & financial services and insurance (BFSI) now contributing 35.6% (+3.1x in 15 years) weightage in the Nifty-50.
The share of private banks / NBFC in the index, they believe, has gone up led by: a) better earnings performance, coupled with capital raising from the markets (this boosted the free