India’s economic growth has been recently driven by domestic consumption the most. As per a report by Deloitte India, the economy can grow between 6.7% and 7.3% in FY26, mainly driven by domestic consumption. For an investor, this can be an excellent opportunity to invest in the companies or mutual funds that invest in companies engaged in products mainly made for domestic consumers. However, to understand the dynamics of domestic consumption and how the companies are performing, they need a benchmark, which can be the Nifty India Consumption Index. 

In this article, we will discuss the Nifty India Consumption Index, its performance, risk factors, factors that affect the index, composition, and much more. 

NIFTY INDIA CONSUMPTION Index – Overview & Constituents 

Nifty India Consumption Index has been developed for tracking the performance and behaviour of the companies that are mostly driven by domestic consumption. It includes multiple sectors such as consumer non-durables, telecom services, Media and entertainment, healthcare, pharmaceuticals, automobile, and others. It is a 30-stock index whose constituents are listed on the National Stock Exchange (NSE). 

The Nifty India Consumption index stocks list includes – (As of 8 April 2025)

Stocks	Sector	Stocks	Sector
Adani Power Ltd.	Power	Indian Hotels Co. Ltd.	Consumer Services
Apollo Hospitals Enterprise Ltd.	Healthcare	Info Edge (India) Ltd.	Consumer Services
Asian Paints Ltd.	Consumer Durables	InterGlobe Aviation Ltd.	Services
Avenue Supermarts Ltd.	Consumer Services	Mahindra & Mahindra Ltd.	Automobile and Auto Components
Bajaj Auto Ltd.	Automobile and Auto Components	Maruti Suzuki India Ltd.	Automobile and Auto Components
Bharti Airtel Ltd.	Telecommunication	Max Healthcare Institute Ltd.	Healthcare
Britannia Industries Ltd.	Fast Moving Consumer Goods	Nestle India Ltd.	Fast Moving Consumer Goods
Colgate Palmolive (India) Ltd.	Fast Moving Consumer Goods	TVS Motor Company Ltd.	Automobile and Auto Components
DLF Ltd.	Realty	Tata Consumer Products Ltd.	Fast Moving Consumer Goods
Eicher Motors Ltd.	Automobile and Auto Components	Tata Power Co. Ltd.	Power
Godrej Consumer Products Ltd.	Fast Moving Consumer Goods	Titan Company Ltd.	Consumer Durables
Havells India Ltd.	Consumer Durables	Trent Ltd.	Consumer Services
Hero MotoCorp Ltd.	Automobile and Auto Components	United Spirits Ltd.	Fast Moving Consumer Goods
Hindustan Unilever Ltd.	Fast Moving Consumer Goods	Varun Beverages Ltd.	Fast Moving Consumer Goods
ITC Ltd.	Fast Moving Consumer Goods	Zomato Ltd.	Consumer Services

The top ten stocks by weightage – 

Stocks	Weight in the Index (%)
Bharti Airtel Ltd.	10.06
ITC Ltd.	10.04
Mahindra & Mahindra Ltd.	7.97
Hindustan Unilever Ltd.	6.76
Maruti Suzuki India Ltd.	5.10
Zomato Ltd.	4.73
Titan Company Ltd.	4.26
Trent Ltd.	3.99
Asian Paints Ltd.	3.57
InterGlobe Aviation Ltd.	3.39

Sectoral Representation

Sectors	Weight in the Index (%)
Fast Moving Consumer Goods	30.46
Automobile and Auto Components	22.05
Consumer Services	14.96
Telecommunication	10.06
Consumer Durables	9.14
Healthcare	5.01
Power	3.48
Services	3.39
Realty	1.47

Selection Criteria

The stock selection criteria for the equity index Nifty India Consumption index include – 

• Stocks should be from the Nifty 500 universe; however, in case the number of eligible stocks of a particular sector within the Nifty 500 gets below 10, then stocks from the top 800 companies of the Nifty universe, based on average daily turnover and daily full market capitalization of the past six months. 
• Companies need to be from the consumption sector only
• At least 50% of the revenue of the constituent companies needs to come from domestic consumption/ markets
• Minimum trading frequency of the eligible stock has to be 90% in the past six months
• As of the cutoff date, the listing history of the company has to be at least one month
• The final selection of the companies will be done based on free-float market capitalization. 

Factors Affecting the NIFTY INDIA CONSUMPTION Index

Factors affecting the Nifty India Consumption index are – 

• Disposable income: Firstly, consumption is highly dependent on the disposable income of the citizens. As this index tracks companies that generate revenue mainly from domestic markets, the disposable income of the domestic consumers will affect the companies and, in turn, the index as well. 
• Interest rate: The next factor is interest rate, or if more spoken, the fiscal and monetary policies. When the interest rates are low, people have better credit support, and thus consumption goes up. This will help the companies in the consumption sector boom, and so does the index and vice versa.  
• Inflation: On the other hand, if inflation is high, the money in the hands of the people (read consumers) will be less powerful and consumption will decrease. 
• Advertising: Consumption also depends on how well a product has been marketed.    
• Preferences: Finally, and most importantly, the choices and preferences of the people determine consumption, and along with any shift in the choices and preferences, the consumption also shifts, which also changes the dynamics of the index.  

NIFTY INDIA CONSUMPTION Index Calculation Method

For the Nifty India Consumption index, the stocks are selected based on free-float market capitalization. 

Here, once the stocks are shortlisted as per the selection criteria given above, each of the stocks is assigned weights according to the free-float market capitalization. 

For assigning weights, you need to keep in mind that no individual stocks should have more than 10% of the weight. 

Now, once the stocks are weighted, and then they values are summed up to be divided by the base market capitalisation value to derive the index valuation. 

The formula to derive the index value – 

Nifty India Consumption Index Value = (Free-float Market Cap/ Base Market Cap) *Base Price

Performance and Returns

Here are the returns for different periods – 

Period	Price Return (%)	Total Return (%)
YTD	-5.65	-5.48
1 Year	5.84	6.88
5 Years	21.34	22.64
Since Inception	13.12	14.46

Enjoy investing in the top stocks of the Nifty 500 universe with the Nifty India Consumption index on the Shoonya App!

Risk and Volatility

Nifty India Consumption invests across sectors, which helps in diversifying the risk. However, there is are certain amount of risk involved, which is indicated by the following – 

• The standard deviation of the index for 1 year stands at 14.61%, while that for 5 years is 14.96%, and since inception, it is recorded at 18.98%. 
• The beta compared to the Nifty 50 is lower, which represents the volatility to be lower. For 1 year, the beta is 0.82, which means the volatility of the Nifty India Consumption index is lower than the Nifty 50. 

How to Invest in the NIFTY INDIA CONSUMPTION INDEX?

You can invest in the Nifty India Consumption Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade Nifty India Consumption Index futures and options in the F&O section of Shoonya’s app. To do so, you have to add the index to your watchlist following these steps – 

• Open the Shoonya app.
• Head to the “Watchlist” tab located at the bottom of your screen.
• In the search bar, type “NIFTY IN” or “SENSEX IN” and add it to the watch list, and then you will be able to see the indices.
• Once you find your desired index, click on the add option given on the right side.
• Now you can see the index on the watchlist. 

Top Nifty India Consumption Index ETFs and Index Funds

• ICICI Prudential Nifty India Consumption ETF
• Nippon India ETF Nifty India Consumption 
• Axis Nifty India Consumption ETF
• ABI Nifty Consumption ETF
• Kotak Nifty India Consumption ETF

Conclusion

The Nifty India Consumption Index has been quite consistent with its performance over the years. As it is a well-diversified index, the risk factor is on the lower side of the spectrum as well. So, if you are interested in investing in the consumption sector, then following or tracking this index can be of immense help.   

Nifty India Consumption Index | FAQs

Source: TheEconomicsTimes

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.