On 7 Oct 2026 I highlighted a notable shift in the Nifty 50 composition: Eternal Technologies Ltd. now carries a 2.2 % weight, overtaking Tata Consultancy Services (TCS) which sits at 2 %. The change reflects the free‑float market‑cap driven methodology of the index and may prompt analysts to re‑evaluate sector exposure.
Eternal's Nifty weight = 2.2 %.
TCS's Nifty weight = 2 %.
- Free‑float market cap is the primary driver of index weights.
- The shift may affect passive fund allocations tracking the Nifty.
- It raises questions about broader trends toward newer or smaller caps gaining prominence.