Interesting comparison with Bank Nifty & Nifty

 Interesting comparison with Bank Nifty

Here is Bank Nifty top 5 and their % weights

Bank Nifty

1. HDFC Bank Ltd. 35.2%
2. ICICI Bank Ltd. 18.5%
3. Kotak Mahindra Bank Ltd. 13.2%
4. Axis Bank Ltd. 10.1%
5. State Bank of India 8.7%

Top stock is 35% of it. Top 2 which are very correlated is 53%. Top 3, again highly correlated are 66%. I need to be really out of my mind to call this an index. This is betting on HDFC for all practical purposes 

I heard SEBI is going to restrict the weightage of one stock in an index to 25%. So may be soon, this is will somewhat be an index. May be

Nifty

1. HDFC Bank Ltd. 10.3%
2. Reliance Industries Ltd. 9.7%
3. Housing Development Finance Corporation 7.3%
4. Infosys Ltd. 6.6%
5. I T C Ltd. 5.5%