Imbalanced. Way too many cyclical stocks included in this index. 14 of the 25 counters are financials representing 56%. The more stable/counter cyclical stocks have been overlooked at the altar of lightweights - biggest omission is Jubilee.
In a bull market NSE 25 will outperform both the NSE 20 and the NASI. In a bear market it will underperform both indices by clocking larger declines.
Of the NSE 20 reconstituted last year, sasini and kq have been axed and replaced with an additional 4 banks and 3 insurance companies. More volatility.
The main purpose of the stock market is to make fools of as many people as possible.