NFTY - ETF AI Analysis

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First Trust India NIFTY 50 Equal Weight ETF (NFTY)

Rating:64Neutral

Price Target:―

The First Trust India NIFTY 50 Equal Weight ETF (NFTY) has a solid overall rating, supported by strong contributions from holdings like Tata Consultancy Services (TCS) and State Bank of India (SBIN). TCS stands out with its robust financial performance, profitability, and favorable valuation, while SBIN benefits from strong momentum and strategic initiatives in digital banking. However, weaker holdings like Tech Mahindra, which faces operational challenges and potential short-term weakness, may have slightly weighed on the fund's rating. A key risk factor is the potential overvaluation of several holdings, which could impact future performance.

Positive Factors

Strong Top Holdings

Several of the ETF's top holdings, such as Kotak Mahindra Bank and Bharti Airtel, have shown strong year-to-date performance, supporting overall returns.

Sector Diversification

The ETF is spread across multiple sectors like Financials, Consumer Cyclical, and Health Care, reducing reliance on any single industry.

Focused Geographic Exposure

The ETF’s near-exclusive focus on India allows investors to tap into the growth potential of one of the world’s fastest-growing economies.

Negative Factors

High Expense Ratio

The ETF charges a relatively high expense ratio compared to many other funds, which could eat into investor returns over time.

Limited Geographic Diversification

With nearly all assets concentrated in India, the fund is highly exposed to risks specific to the Indian market.

Mixed Performance Among Holdings

While some holdings have performed well, others like Max Healthcare and Cipla have shown weaker year-to-date performance, potentially dragging down overall returns.

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

AUM175.76M

RegionAsia-Pacific

Expense Ratio0.80%

Beta0.42

IssuerFirst Trust

Inception DateFeb 14, 2012

Dividend Yield1.23%

Asset ClassEquity

Index TrackedNIFTY 50 Equal Weight Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume15,745

30 Day Avg. Volume16,854

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

63.92

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering50

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

NFTY Summary

The First Trust India NIFTY 50 Equal Weight ETF (NFTY) is an investment fund that focuses on India's largest companies by equally weighting all 50 firms in the NIFTY 50 Index. This approach ensures no single company dominates the portfolio, offering balanced exposure to India's growing economy. Some well-known companies in the ETF include Reliance Industries and Nestle India. Investors might consider NFTY for diversification and to tap into the potential growth of one of the world's fastest-growing markets. However, new investors should be aware that the ETF’s performance is tied to the Indian stock market, which can be volatile.

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

The NFTY ETF offers a balanced slice of India’s economic powerhouse, but recent performance has been a mixed bag. Financial heavyweights like Shriram Finance and State Bank of India are rising steadily, helping to anchor the fund’s returns. Meanwhile, tech names such as HCL Technologies and Infosys have struggled to gain traction, dragging on overall performance. With a strong tilt toward financials and consumer-focused sectors, the fund reflects India’s growth story but remains vulnerable to sector-specific headwinds. Its equal-weight approach ensures no single stock dominates, keeping the focus on broad-based exposure.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SHRIRAMFIN	Shriram Finance Limited	2.99%	$5.47M	₹1.76T	66.25%	67 Neutral
HCLTECH	HCL Technologies Limited	2.26%	$4.12M	₹4.53T	-11.46%	73 Outperform
ASIANPAINT	Asian Paints Ltd.	2.24%	$4.08M	₹2.69T	22.94%	63 Neutral
TITAN	Titan Company Limited	2.22%	$4.06M	₹3.49T	16.88%	69 Neutral
HINDALCO	Hindalco Industries Limited	2.22%	$4.05M	₹1.94T	37.48%	75 Outperform
RELIANCE	Reliance Industries Limited	2.19%	$4.00M	₹21.32T	28.39%	74 Outperform
TECHM	Tech Mahindra Limited	2.16%	$3.95M	₹1.61T	-4.35%	55 Neutral
SBIN	State Bank of India	2.16%	$3.95M	₹8.99T	19.71%	76 Outperform
INFY	Infosys Limited	2.15%	$3.93M	₹6.85T	-12.63%	76 Outperform
WIPRO	Wipro Limited	2.15%	$3.92M	₹2.85T	-11.12%	71 Outperform

NFTY Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

58.10

Positive

100DMA

57.53

Positive

200DMA

57.15

Positive

Market Momentum

MACD

-0.04

Negative

RSI

58.60

Neutral

STOCH

94.22

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 57.64, equal to the 50-day MA of 58.10, and equal to the 200-day MA of 57.15, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 94.22 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	―	―	$175.76M	0.80%	―
SMIN	―	―	$739.56M	0.75%	―
INDY	―	―	$643.57M	0.65%	―
PIN	―	―	$197.69M	0.78%	―
GIND	―	―	$128.46M	0.75%	―
INDH	―	―	$6.39M	0.64%	―

Performance Comparison

NFTY

First Trust India NIFTY 50 Equal Weight ETF

58.52

2.86

5.14%

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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