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NFTY - ETF AI Analysis

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NFTY

First Trust India NIFTY 50 Equal Weight ETF (NFTY)

Rating:64Neutral
Price Target:
NFTY’s rating reflects a generally solid, but not outstanding, portfolio built around strong Indian blue-chip companies. Key holdings like HDFC Bank, Maruti Suzuki, HCL Technologies, and Sun Pharma support the fund’s quality through robust financial performance and positive market momentum, though several of these names show signs of potential overvaluation or overbought conditions. Some holdings such as Bajaj Auto and Bajaj Finserv face cash flow or technical challenges, and the fund’s focus on Indian equities means investors are exposed to country-specific economic and market risks.
Positive Factors
Balanced Top Holdings
The ETF uses an equal-weight approach, so no single stock dominates the portfolio, helping spread company-specific risk.
Exposure to Leading Indian Companies
The fund holds many well-known Indian firms in finance, technology, and consumer sectors, giving investors access to major players in India’s market.
Decent Asset Base
The ETF has a meaningful amount of assets under management, which can support trading liquidity for everyday investors.
Negative Factors
Recent Weak Performance
The ETF’s returns over the year to date and recent months have been negative, showing weak short-term momentum.
Several Lagging Top Holdings
A number of the largest positions, including major technology names, have delivered weak performance so far this year, which has weighed on the fund.
High Expense Ratio
The fund charges a relatively high fee, which can reduce the net returns investors keep over time.

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

NFTY Summary

NFTY is an exchange-traded fund that follows the NIFTY 50 Equal Weight Index, which includes 50 of India’s largest and most established companies, all held in roughly equal amounts. This means no single stock dominates the fund. It owns well-known Indian names like ICICI Bank and Tata Consultancy Services. Investors might consider NFTY to get simple, broad exposure to India’s fast-growing economy in one investment, with built-in diversification across many sectors. A key risk is that it is heavily tied to the Indian stock market, so its value can rise or fall sharply with that market.
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’s story is all about India’s big names sharing the spotlight. Adani Enterprises and Adani Ports have been rising and act like twin engines, giving the fund a lift from infrastructure and logistics. Retail-focused Trent is another bright spot, adding momentum from India’s growing consumer story. On the flip side, Cipla, Bajaj Finance, and Asian Paints have been more mixed to lagging, occasionally putting a brake on returns. Overall, the ETF is broadly spread across Indian sectors, with no single stock dominating, and fully anchored in India’s large-cap market.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bajaj Auto Limited2.21%$2.92M₹3.07T36.08%
64
Neutral
Zomato Ltd.2.14%$2.82M₹2.73T-8.23%
HCL Technologies Limited2.13%$2.81M₹3.36T-17.39%
73
Outperform
Titan Company Limited2.08%$2.74M₹4.18T34.82%
69
Neutral
Tata Consultancy Services Limited2.03%$2.68M₹7.99T-29.88%
80
Outperform
Tech Mahindra Limited2.03%$2.68M₹1.53T3.72%
55
Neutral
Bajaj Finserv Limited2.03%$2.68M₹3.00T-7.02%
65
Neutral
Oil & Natural Gas Corp. Ltd.2.02%$2.66M₹3.17T3.08%
72
Outperform
Nestle India Ltd.2.01%$2.65M₹2.88T24.97%
68
Neutral
Mahindra & Mahindra Ltd.2.01%$2.65M₹3.95T-0.98%
68
Neutral

NFTY Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
53.31
Negative
100DMA
53.28
Negative
200DMA
55.39
Negative
Market Momentum
MACD
-0.17
Positive
RSI
41.80
Neutral
STOCH
20.83
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For NFTY, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 53.53, equal to the 50-day MA of 53.31, and equal to the 200-day MA of 55.39, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 41.80 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NFTY.

NFTY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$124.31M0.80%
64
Neutral
$739.86M0.74%
59
Neutral
$547.41M0.65%
68
Neutral
$162.67M0.75%
57
Neutral
$122.68M0.78%
68
Neutral
$5.84M0.64%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NFTY
First Trust India NIFTY 50 Equal Weight ETF
52.76
-3.76
-6.65%
SMIN
iShares MSCI India Small Cap ETF
INDY
iShares India 50 ETF
GIND
Goldman Sachs India Equity ETF
IMVP
Invesco India 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.
DisclaimerThis 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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