New firms calling the shots in Nifty

The average age of Nifty companies has risen marginally by seven years in the past 18 years, showing how newer companies have edged some older corporates out of the index. Though the average age seems to have stabilised at 46 years, in real terms, it has declined marginally in the past four years.

Youngest company

8 years is the age of Cairn India. It came into the Nifty in 2007 when it was one year old.

Oldest company

119 years is the age of Punjab National Bank. It got included in 2004 at the age of 109.


1. 10 young firms that made a difference

The inclusion of these new companies has brought down the average age of Nifty companies in recent years.



2. Young companies also carry more weight in index

Newer companies also carry more weight in the index. The 10 youngest companies are less than 20 years old and have a weightage of 24.43 per cent in the 50-share benchmark index.



3. Average age of Nifty companies

The sharpest drop came between 2005 and 2010, when newcomers like TCS, Idea, RCom, Reliance Power and Suzlon replaced Shipping Corp, Tata Tea and Tata Chemicals in the index.



4. 10 veterans that have pushed up the average

But the entry of young companies got balanced by the inclusion of veterans like Punjab National Bank and Bank of Baroda in recent years.



5. 13 stocks that never went out of Nifty





Source: ETIG, NSE; Analysis by Gramener.com