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Eternal’s Nifty 50 Weight Surpasses TCS on Free Float
Eternal and TCS are both companies in India’s Nifty 50 stock index.
Eternal now takes up a slightly bigger share of the index than TCS.
That does not mean Eternal is a bigger company.
The index counts the shares investors can buy and trade, and Tata Sons owns a large part of TCS.
Eternal’s share price and expectations for future growth, especially at Blinkit, also affect its index weight.
TCS currently earns much more profit, according to the figures in the article.
Funds that copy the index therefore need to hold a little more Eternal and a little less TCS.
Investors may prefer Eternal’s growth prospects or TCS’s lower valuation and dividend, depending on their goals.
As of September 30, 2026, Eternal had a 2.29% Nifty 50 weight, compared with TCS at 2.08%.
The difference reflects free-float market capitalisation: Tata Sons owns about 72% of TCS, while more of Eternal’s shares are publicly investable.
TCS has a reported market capitalisation of about ₹7.5 lakh crore and quarterly profit of ₹13,420 crore; Eternal’s figures were about ₹3.1 lakh crore and ₹92 crore.
Eternal’s valuation reflects growth expectations, particularly for quick-commerce business Blinkit, while TCS is described as trading at a lower valuation and offering a dividend yield.
Nifty 50 funds tracking the index must hold relatively more Eternal; analysts say investors should also assess each company’s growth prospects, valuation and business risks.
- Who
- Eternal and Tata Consultancy Services (TCS), whose Nifty 50 weights are compared.
- What
- Eternal’s Nifty 50 weight was reported at about 2.29%, above TCS’s roughly 2.08%, largely because of differences in free float.
- Where
- India’s Nifty 50 index.
- When
- The weight figures are as of September 30, 2026; Eternal entered the Nifty 50 on March 28, 2025.
- Why
- Index weights use free-float market capitalisation, and a larger proportion of Eternal’s shares is available to public investors than TCS shares.
Growth-oriented view
Value-oriented view
Which stock may appeal to investors
Growth-oriented view
Growth-oriented investors may favor Eternal, whose valuation reflects expectations for continued growth, particularly in Blinkit.
Value-oriented view
Value-focused investors may prefer TCS, described as having a lower valuation and a 3% dividend yield.
What could shift the valuation gap
Growth-oriented view
The gap could widen if Blinkit maintains strong unit economics while IT services growth remains subdued.
Value-oriented view
The gap could narrow if TCS gains stronger AI-led deals or quick commerce faces renewed pricing pressure.
Key facts
- Eternal Nifty 50 weight
- About 2.29% as of September 30, 2026
- TCS Nifty 50 weight
- About 2.08% as of September 30, 2026
- Tata Sons’ TCS holding
- Close to 72%, according to the article
- Reported market capitalisation
- TCS: about ₹7.5 lakh crore; Eternal: about ₹3.1 lakh crore
- Reported quarterly profit
- TCS: about ₹13,420 crore; Eternal: about ₹92 crore
- Eternal’s Nifty 50 entry
- March 28, 2025; it replaced Britannia Industries
- Passive-fund implication
- Funds tracking the Nifty 50 need a relatively larger allocation to Eternal than to TCS.
Quotes
Naren Agarwal
CEO of Wealth1
“TCS, in the mid-teens on trailing earnings with a 3% dividend yield, is priced for near-zero constant-currency growth”
livemint.com
Sources
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