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 driven by strong, broadly diversified Indian blue-chip holdings. Standout contributors like State Bank of India, Axis Bank, Bharat Electronics, and Eicher Motors support the fund with robust financial performance and positive technical trends, while companies such as Tata Steel and JSW Steel add strength but face valuation and regional performance challenges that slightly temper the fund’s appeal. The main risk is that many top holdings show signs of potential overvaluation or overbought technical conditions, which could lead to short-term volatility.

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)

AUM160.37M

RegionAsia-Pacific

Expense Ratio0.80%

Beta0.42

IssuerFirst Trust

Inception DateFeb 14, 2012

Dividend Yield1.31%

Asset ClassEquity

Index TrackedNIFTY 50 Equal Weight Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume40,887

30 Day Avg. Volume24,973

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

65.65

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’s story right now is all about India’s big banks and industrial heavyweights pulling in the same direction. State Bank of India and Axis Bank are rising and helping set the pace, while Shriram Finance has been especially strong lately, adding extra fuel from the financials side. On the industrial and infrastructure front, NTPC and Power Grid are steadily climbing, and commodity names like Tata Steel and JSW Steel are contributing, though with more mixed signals given valuation worries. With all holdings in India, the fund is a pure play on the country’s large-cap growth, tilted toward financials, materials, and energy.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ONGC	Oil & Natural Gas Corp. Ltd.	2.46%	$3.95M	₹3.51T	19.80%	72 Outperform
SBIN	State Bank of India	2.44%	$3.92M	₹10.56T	56.06%	76 Outperform
BEL	Bharat Electronics Limited	2.43%	$3.90M	₹3.42T	69.08%	76 Outperform
TATASTEEL	Tata Steel Limited	2.43%	$3.90M	₹2.48T	30.98%	71 Outperform
NTPC	NTPC Limited	2.43%	$3.89M	₹3.69T	15.52%	73 Outperform
JSWSTEEL	JSW Steel Limited	2.33%	$3.74M	₹3.02T	22.07%	66 Neutral
POWERGRID	Power Grid Corporation of India Limited	2.33%	$3.74M	₹2.78T	13.68%	72 Outperform
HINDALCO	Hindalco Industries Limited	2.27%	$3.64M	₹2.15T	38.65%	75 Outperform
COALINDIA	Coal India Ltd.	2.26%	$3.63M	₹2.71T	15.73%	77 Outperform
BAJAJ.AUTO	Bajaj Auto Limited	2.24%	$3.59M	₹2.74T	29.74%	64 Neutral

NFTY Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

57.45

Negative

100DMA

57.76

Negative

200DMA

57.65

Negative

Market Momentum

MACD

-0.60

Positive

RSI

30.79

Neutral

STOCH

27.83

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 57.38, equal to the 50-day MA of 57.45, and equal to the 200-day MA of 57.65, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 30.79 is Neutral, neither overbought nor oversold. The STOCH value of 27.83 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
NFTY	―	―	$160.37M	0.80%	64 Neutral
SMIN	―	―	$652.88M	0.74%	60 Neutral
INDY	―	―	$616.95M	0.65%	68 Neutral
IMVP	―	―	$170.48M	0.78%	70 Outperform
GIND	―	―	$157.53M	0.75%	55 Neutral
INDH	―	―	$6.07M	0.64%	69 Neutral

Performance Comparison

NFTY

First Trust India NIFTY 50 Equal Weight ETF

54.84

2.82

5.42%

SMIN

iShares MSCI India Small Cap ETF

―

INDY

iShares India 50 ETF

―

IMVP

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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