The Nifty IT Index is calculated using the free-float market capitalization method with a base date of January 1, 1996. The index serves as a benchmark for the performance of the Indian IT sector and comprises 10 marquee IT companies listed on the National Stock Exchange. NSE). It is primarily a large-cap index and is rebalanced on a quarterly basis by ensuring that no stock exceeds 33% and the total weight of the top 3 stocks at the time of rebalancing does not exceed 62%.
“Over the years, India has established itself as a preferred destination for IT and business process management services, with the sector contributing nearly 44% of FDI inflows into India in 2021 (Source: Gartner, Indian Brand Equity) Foundation (IBEF) / as the case may be) August 2021). According to a report by NASSCOM, it has been estimated that the Indian IT sector has the potential to become an industry of $350 billion in annual revenue by 2025. The government is encouraging this sector not only by fast-tracking the Digital India initiative but also by launching schemes like MeitY, SAMRIDH and PLI. All this will greatly benefit the sector,” said A Balasubramaniam, Managing Director and CEO, Aditya Birla Sun Life AMC.
He adds, “Amid the pandemic, the sector has showcased its defensive nature by reporting strong business growth, and has also delivered great returns. With India on its way to become a global hub of IT, the Aditya Birla Sun Life IT ETF gives investors an opportunity to tap the growth potential of top IT companies.