NFTY - ETF AI Analysis

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First Trust India NIFTY 50 Equal Weight ETF (NFTY)

Rating:64Neutral

Price Target:―

NFTY, the First Trust India NIFTY 50 Equal Weight ETF, has a solid overall rating, largely supported by strong Indian blue-chip names like Axis Bank, State Bank of India, NTPC, Hindalco, and Bharat Electronics, which show healthy financial performance and generally positive price trends. These strengths are partly offset by holdings such as Tech Mahindra and UltraTech Cement, where high valuations, margin or technical challenges, and lower income potential introduce more risk. Investors should also note that several holdings show signs of potential overvaluation or overbought technical conditions, which can add volatility to the fund.

Positive Factors

Broad Sector Spread Within India

The ETF holds companies across many sectors, including financials, consumer, materials, energy, technology, and health care, which helps reduce the impact of weakness in any single industry.

Equal-Weight Approach Limits Single-Stock Risk

Because the fund spreads its holdings fairly evenly, no single company dominates the portfolio, helping to reduce the risk from any one stock.

Several Top Holdings Showing Positive Momentum

A number of the largest positions, such as major banks, technology firms, and materials companies, have shown strong year-to-date performance, which can support the fund’s future returns if that trend continues.

Negative Factors

Recent Weak Performance

The ETF has delivered negative returns over the past month, three months, and year to date, signaling recent headwinds for the portfolio.

High Concentration in India

With essentially all assets invested in Indian companies, the fund is heavily exposed to the economic and political risks of a single country.

Relatively High Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are eaten up by fees over time.

NFTY vs. SPDR S&P 500 ETF (SPY)

AUM164.94M

RegionAsia-Pacific

Expense Ratio0.80%

Beta0.40

IssuerFirst Trust

Inception DateFeb 14, 2012

Dividend Yield1.24%

Asset ClassEquity

Index TrackedNIFTY 50 Equal Weight Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume24,844

30 Day Avg. Volume18,210

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

65.54

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering50

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

NFTY Summary

NFTY is an exchange-traded fund that tracks the NIFTY 50 Equal Weight Index, giving you exposure to 50 of India’s largest companies, each held in roughly the same size instead of letting a few giants dominate. It includes well-known names like State Bank of India and Tata Steel, and spreads your money across many sectors such as finance, technology, and energy. Someone might invest in NFTY to tap into India’s long-term growth and to diversify beyond their home market. A key risk is that it can rise or fall sharply with the Indian stock market and currency swings.

How much will it cost me?The expense ratio for the First Trust India NIFTY 50 Equal Weight ETF (NFTY) is 0.8%, meaning you’ll pay $8 per year for every $1,000 invested. This is higher than average because the fund uses an equal-weight strategy, which requires more active management compared to passively managed ETFs that track market-cap weighted indices.

What would affect this ETF?The NFTY ETF could benefit from India's strong economic growth and increasing consumer demand, which supports sectors like financials, consumer cyclical, and technology. However, potential risks include regulatory changes in India, global economic uncertainty, and fluctuations in energy or material prices that could impact key holdings like Reliance Industries. Investors should also consider how changes in interest rates or geopolitical tensions in the Asia-Pacific region might affect the ETF's performance.

NFTY Top 10 Holdings

NFTY is riding India’s broad growth story, with no single giant calling the shots, but a few names are setting the tone. Financial heavyweights like State Bank of India and Axis Bank are rising and helping steer the fund higher, while Tech Mahindra’s more mixed tech outlook keeps some of that momentum in check. On the industrial side, Hindalco and Tata Steel have been climbing, giving the fund a cyclical tailwind, even as energy names like ONGC look more steady than exciting. Overall, it’s a diversified, India-only play with a tilt toward banks, materials, and energy.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
TATASTEEL	Tata Steel Limited	2.36%	$4.02M	₹2.46T	50.82%	71 Outperform
SBIN	State Bank of India	2.35%	$3.99M	₹9.84T	55.52%	76 Outperform
JSWSTEEL	JSW Steel Limited	2.25%	$3.83M	₹3.02T	29.74%	66 Neutral
ONGC	Oil & Natural Gas Corp. Ltd.	2.25%	$3.82M	₹3.38T	9.87%	72 Outperform
NTPC	NTPC Limited	2.21%	$3.76M	₹3.54T	16.61%	73 Outperform
SHRIRAMFIN	Shriram Finance Limited	2.19%	$3.72M	₹1.89T	89.51%	67 Neutral
ULTRACEMCO	UltraTech Cement Limited	2.19%	$3.72M	₹3.75T	13.13%	68 Neutral
HINDALCO	Hindalco Industries Limited	2.19%	$3.71M	₹2.12T	61.72%	75 Outperform
BEL	Bharat Electronics Limited	2.17%	$3.69M	₹3.14T	55.16%	76 Outperform
AXISBANK	Axis Bank Limited	2.16%	$3.67M	₹4.17T	32.60%	76 Outperform

NFTY Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

57.54

Positive

100DMA

57.72

Positive

200DMA

57.65

Positive

Market Momentum

MACD

0.08

Negative

RSI

58.36

Neutral

STOCH

84.64

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For NFTY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 57.08, equal to the 50-day MA of 57.54, and equal to the 200-day MA of 57.65, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 84.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NFTY.

NFTY Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
NFTY	―	―	$164.94M	0.80%	―
SMIN	―	―	$689.60M	0.74%	―
INDY	―	―	$634.81M	0.65%	―
PIN	―	―	$180.94M	0.78%	―
GIND	―	―	$159.39M	0.75%	―
INDH	―	―	$6.25M	0.64%	―

Performance Comparison

NFTY

First Trust India NIFTY 50 Equal Weight ETF

58.28

4.60

8.57%

SMIN

iShares MSCI India Small Cap ETF

―

INDY

iShares India 50 ETF

―

Invesco India ETF

―

GIND

Goldman Sachs India Equity ETF

―

INDH

WisdomTree India Hedged Equity Fund

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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