Last Updated on Apr 18, 2023 by Anjali Chourasiya

If you’ve ever been curious about the jargon of the stock market, you’ve likely come across the term “Nifty 50.” But what does it mean? Nifty 50 is a benchmark index comprising 50 companies out of over 2000 listed on the National Stock Exchange (NSE). But what are these companies, and how does the NSE sort this list? Let’s find out in this article. 

What is Nifty 50?

Nifty 50 is a benchmark index of the Indian stock market. It represents the weighted average of the top 50 large-cap, most liquid stocks listed on the National Stock Exchange. As called Nifty, the index is used to benchmark fund portfolios, index funds, and index-based derivatives.

The listed stocks in the index stretch across 13 economic areas, such as financial services, healthcare, construction, and more (Find the list below). 

Although the index has only 50 of the 2,113 companies listed on the NSE, it captures 66% of its float-adjusted market capitalisation. Therefore, the Nifty 50 is regarded as a true reflection of the Indian stock market.

Nifty also has various sub-indices based on different asset classes, sectors, or segments. Nifty IT, Nifty Next 50, Nifty Bank, and Nifty small-cap are some of the Nifty indices.

Features and facts of the Nifty 50 index

  • Nifty is owned and managed by India Index Services and Products (IISL).
  • The base year is 1995, and the base value is 1,000.
  • Nifty is a composition of 50 large-cap stocks actively trading on the NSE.
  • The companies in Nifty 50 are selected based on the free-float market capitalisation.
  • Nifty 50 companies belong to different sectors.

Nifty 50 sector weightage

SectorWeight (%)
Financial Services37.72
Information Technology14.11
Oil, Gas, and Consumable Fuels12.14
Fast-Moving Consumer Goods9.58
Automobile and Auto Components5.28
Metals and Mining3.36
Consumer Durables3.01
Construction Materials1.94

Nifty 50 is a free-float market capitalisation index. The sector weightage in the index keeps changing based on the performance of constituent stocks.

Nifty 50 stocks list 2023

NameSub-SectorMarket Cap (Rs. in cr.)Close Price (Rs.)
Adani Enterprises LtdCommodities Trading2,14,177.711,878.75
Adani Ports and Special Economic Zone LtdPorts1,43,584.44664.70
Apollo Hospitals Enterprise LtdHospitals & Diagnostic Centres63,074.024,386.70
Asian Paints LtdPaints2,72,607.842,843.10
Axis Bank LtdPrivate Banks2,66,036.93864.55
Bajaj Auto LtdTwo Wheelers1,20,379.964,254.35
Bajaj Finance LtdConsumer Finance3,60,259.175,961.45
Bajaj Finserv LtdInsurance2,13,314.381,341.15
Bharat Petroleum Corporation LtdOil & Gas – Refining & Marketing72,592.30335.70
Bharti Airtel LtdTelecom Services4,38,093.45759.65
Britannia Industries LtdFMCG – Foods1,04,503.124,338.60
Cipla LtdPharmaceuticals73,164.17906.45
Coal India LtdMining – Coal1,41,496.24229.60
Divi’s Laboratories LtdLabs & Life Sciences Services83,958.423,162.65
Dr. Reddy’s Laboratories LtdPharmaceuticals80,599.184,852.30
Eicher Motors LtdTrucks & Buses88,300.003,229.00
Grasim Industries LtdCement1,13,172.331,723.65
HCL Technologies LtdIT Services & Consulting2,82,159.511,042.20
HDFC Bank LtdPrivate Banks9,29,946.331,666.65
HDFC Life Insurance Company LtdInsurance1,14,619.99533.40
Hero MotoCorp LtdTwo Wheelers49,279.482,465.95
Hindalco Industries LtdMetals – Aluminium95,939.65428.70
Hindustan Unilever LtdFMCG – Household Products5,99,580.452,551.85
Housing Development Finance Corporation LtdHome Financing5,03,044.592,742.05
ICICI Bank LtdPrivate Banks6,29,392.25901.30
ITC LtdFMCG – Tobacco4,97,307.13400.15
IndusInd Bank LtdPrivate Banks87,237.781,124.35
Infosys LtdIT Services & Consulting5,20,481.691,258.30
JSW Steel LtdIron & Steel1,73,340.34721.20
Kotak Mahindra Bank LtdPrivate Banks3,77,001.271,895.15
Larsen & Toubro LtdConstruction & Engineering3,11,173.762,214.00
Mahindra & Mahindra LtdFour Wheelers1,45,131.971,212.95
Maruti Suzuki India LtdFour Wheelers2,62,043.888,674.65
NTPC LtdPower Generation1,64,455.46169.60
Nestle India LtdFMCG – Foods1,95,187.8320,244.40
Oil and Natural Gas Corporation LtdOil & Gas – Exploration & Production2,01,473.17160.15
Power Grid Corporation of India LtdPower Transmission & Distribution1,65,074.09236.65
Reliance Industries LtdOil & Gas – Refining & Marketing16,01,718.022,367.45
SBI Life Insurance Company LtdInsurance114,637.481,145.35
State Bank of IndiaPublic Banks4,85,498.89544.00
Sun Pharmaceutical Industries LtdPharmaceuticals2,39,621.58998.70
Tata Consultancy Services LtdIT Services & Consulting11,48,759.183,139.50
Tata Consumer Products LtdTea & Coffee66,257.11713.20
Tata Motors LtdFour Wheelers1,68,997.14472.15
Tata Steel LtdIron & Steel1,30,953.73107.15
Tech Mahindra LtdIT Services & Consulting1,00,333.891,029.95
Titan Company LtdPrecious Metals, Jewellery & Watches2,31,321.562,605.60
UPL LtdFertilisers & Agro Chemicals55,331.04737.15
UltraTech Cement LtdCement2,23,217.487,742.45
Wipro LtdIT Services & Consulting1,97,952.99361.35

Note: The data is of 18th April 2023. The list of Nifty 50 stocks is derived from Tickertape Stock Screener using the Nifty 50 filter under Stock Universe.

How to find Nifty 50 stocks using Tickertape?

Getting the Nifty 50 stocks list using Tickertape is a two-step process:

Step 2: On the left-hand side, select ‘Nifty 50’ in the Stock Universe

How is Nifty 50 calculated?

The Nifty 50 index is constructed using the free-float market-capitalisation-weighted method. It represents the market value of all the stocks in the index in comparison to a standard period value.

The value of a company’s shareholdings is referred to as its market capitalisation or market cap. The total market value of those shares that are accessible for public trade is called the free-float market cap.

Using this technique, each stock in the index is allocated a weight based on the total value of the outstanding shares.

Each stock’s market cap is calculated by multiplying it by a float factor or Investible Weight Factor (IWF). It solely takes into account shares that are accessible for public trade.

Market capitalisation = Shares outstanding * Current Price

Free-float Market Capitalisation = Market Cap * IWF

Index Value = (Current market value/Base market capital) * 1000

Here, the current market value is the weighted total market capitalisation of all 50 firms. The weighted aggregate market capitalisation of all 50 firms in the base period is the base market capital.

How to invest in Nifty 50 Stocks?

There are two common ways of investing in Nifty 50 stocks as follows:

  1. Buy individual stocks: The first way to invest in the Nifty 50 index is to buy individual stocks. One of the ways to do this is to buy them through Tickertape. Simply screen Nifty 50 stocks on Tickertape Stock Screener, evaluate them using the individual Stock Page and add them to the Basket. You can then execute multiple stock orders via the Transactions feature.
  2. Buy index mutual fund units: If you do not wish to invest in stocks directly, you can buy Nifty 50 stocks via index mutual funds that invest in the constituent stocks. You can invest in an index fund via a lump sum or a Systematic Investment Plan (SIP).

Eligibility criteria for stocks to be included in the Nifty 50 index

  1. The company should be registered with the National Stock Exchange (NSE).
  2. To be listed on the Nifty 50 company list, stocks must have a listing history of at least 6 months. However, if a company undergoes an IPO, it can be included in the index after meeting the normal eligibility criteria for 3 months instead of 6. This exception only applies to IPOs, and the 6-month listing history requirement remains for other listing options like demergers and takeovers.
  3. The stock should have differential voting rights.
  4. The stock should be highly liquid.
  5. The company should be allowed to trade in futures options.

Rebalancing of Nifty 50

Nifty is reconstituted every 6 months. New stocks are included, and existing ones are eliminated based on the performance of the constituent stocks. Stocks can also be removed as a result of mergers, acquisitions, or spin-offs.

To wrap up

In conclusion, understanding the Nifty 50 index is crucial for investors looking to navigate the Indian stock market. With its rich history, diverse constituent stocks, and sector-wise distribution, Nifty 50 plays a pivotal role in shaping investment strategies. By understanding Nifty 50 and gaining insights into its intricacies, investors can unlock new opportunities and make informed decisions to thrive in the dynamic world of stock market investing. For this purpose, Tickertape is your perfect solution. Track Nifty 50 stocks with just one click. So, dive in, explore, and for all your investment needs, #TickertapeHaiNa!

Frequently Asked Questions (FAQs)

What is a stock market index?

A stock market index is a metric used to track movements in the stock market and thereby assess its performance.

What is Nifty 50?

Nifty 50 is a benchmark index constituting 50 stocks of large-cap, well-established companies in India listed on the NSE. These stocks belong to different sectors, making the index a barometer for the overall stock market performance.

What are the 50 stocks of the Nifty 50 index?

Nestle India Ltd, Maruti Suzuki India Ltd, Bajaj Finance Ltd, UltraTech Cement Ltd, Apollo Hospitals Enterprise Ltd, and Dr Reddy’s Laboratories Ltd are a few stocks on the index.

Which share is the best in Nifty 50?

The best share in the Nifty 50 index depends on your investment objective, return expectation and risk appetite. Nifty 50 stocks span sectors like IT, financial services, automobiles, and so on. Sectors like IT can be high-growth, whereas FMCG may have moderate, sustained growth. With high growth comes high risk. Therefore, you should invest in stocks only after evaluating them based on their performance, prospects, and individual preference.

How many companies are there in Nifty 50?

There are 50 companies in the Nifty 50 index. These belong to well-established, large-cap companies across sectors.

How can I buy Nifty stocks?

You can either buy individual stocks that constitute the index or invest in Nifty 50 index funds.

How often is Nifty 50 rebalanced?

The index is rebalanced every 6 months. The cut-off date is 31st January and 31st July of each year. A prior notice of 4 weeks is given to the market.

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