| The Glencore episode has stoked fears of another Lehman-like crisis, this time centring around commodity stocks. But investors do not have to worry too much, as the influence of commodity stocks on the Indian markets has been waning over the past seven years. Due to continuous underperformance, Indian investors have shifted their preference from commodities to bank and information technology stocks.
This shift is apparent from an analysis of the share in the market capitalisation of various stocks in the Nifty basket. The proportion of commodity stocks in the Nifty basket stands at 12.6 per cent, based on the free-float market cap. This is down sharply from the 19 per cent at the end of June 2014, when the sharp decline in commodity prices began...............................................Full Article: Source
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