Top 5 Nifty50 stocks contribute 42.4%, against 42.66% in November

The concentration of the top five Nifty50 stocks reduced slightly in December over the previous month, indicating a broad basing of the index.

Market pundits believe that the market rally this year is likely to be less concentrated and that polarisation — where a handful of stocks outperform the index — will become less pronounced in 2021.

The top five stocks contributed 42.4 per cent to the Nifty50 index, compared with 42.66 per cent in November. The top four sectors — financial services, information technology, oil and gas, and consumer goods — formed 79.1 per cent of index weight as of December.

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