Two routes to the Nifty 50

Two indices can own exactly the same 50 stocks and still hand investors very different returns. Over the past year, one of them lost money while the other gained more than 8 per cent, without a single stock to tell them apart. The difference is not in what they own. It is in how much of each they own. The Nifty 50 and the Nifty 50 Equal Weight are the cleanest examples of this in the Indian market. Same 50 companies, same reconstitution schedule, same universe, yet different in a crucial way. The table titled “Same cast, different roles” below highlights what sets them apart. The different weighting rules result in very different portfolio concentration. While the Nifty 50 is dominated by a handful of heavyweight stocks, the Equal Weight Index spreads exposure almost evenly across all 50 constituents. This is evident in the visual titled “The top 10 steal the show”. The top 10 stocks account for more than half of the Nifty 50, while the bottom 10 together contribute less than 7 per cent. In contrast, every group of 10 stocks contributes roughly one-fifth of the Equal Weight index. Weights shape returns As of July 24, 2026, the Nifty 50 delivered a one-year return of -2.3 per cent, while the Equal Weight index returned 8.2 per cent. Over the last three years, the gap was equally notable: 6.7 per cent per annum for the Nifty 50 versus 14.0

This article was originally published on August 20, 2026.