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.
Table of Contents
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
Sector | Weight (%) |
Financial Services | 37.72 |
Information Technology | 14.11 |
Oil, Gas, and Consumable Fuels | 12.14 |
Fast-Moving Consumer Goods | 9.58 |
Automobile and Auto Components | 5.28 |
Healthcare | 3.79 |
Construction | 3.43 |
Metals and Mining | 3.36 |
Consumer Durables | 3.01 |
Telecommunication | 2.41 |
Power | 2.1 |
Construction Materials | 1.94 |
Services | 0.63 |
Chemicals | 0.49 |
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
Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) |
Adani Enterprises Ltd | Commodities Trading | 2,14,177.71 | 1,878.75 |
Adani Ports and Special Economic Zone Ltd | Ports | 1,43,584.44 | 664.70 |
Apollo Hospitals Enterprise Ltd | Hospitals & Diagnostic Centres | 63,074.02 | 4,386.70 |
Asian Paints Ltd | Paints | 2,72,607.84 | 2,843.10 |
Axis Bank Ltd | Private Banks | 2,66,036.93 | 864.55 |
Bajaj Auto Ltd | Two Wheelers | 1,20,379.96 | 4,254.35 |
Bajaj Finance Ltd | Consumer Finance | 3,60,259.17 | 5,961.45 |
Bajaj Finserv Ltd | Insurance | 2,13,314.38 | 1,341.15 |
Bharat Petroleum Corporation Ltd | Oil & Gas – Refining & Marketing | 72,592.30 | 335.70 |
Bharti Airtel Ltd | Telecom Services | 4,38,093.45 | 759.65 |
Britannia Industries Ltd | FMCG – Foods | 1,04,503.12 | 4,338.60 |
Cipla Ltd | Pharmaceuticals | 73,164.17 | 906.45 |
Coal India Ltd | Mining – Coal | 1,41,496.24 | 229.60 |
Divi’s Laboratories Ltd | Labs & Life Sciences Services | 83,958.42 | 3,162.65 |
Dr. Reddy’s Laboratories Ltd | Pharmaceuticals | 80,599.18 | 4,852.30 |
Eicher Motors Ltd | Trucks & Buses | 88,300.00 | 3,229.00 |
Grasim Industries Ltd | Cement | 1,13,172.33 | 1,723.65 |
HCL Technologies Ltd | IT Services & Consulting | 2,82,159.51 | 1,042.20 |
HDFC Bank Ltd | Private Banks | 9,29,946.33 | 1,666.65 |
HDFC Life Insurance Company Ltd | Insurance | 1,14,619.99 | 533.40 |
Hero MotoCorp Ltd | Two Wheelers | 49,279.48 | 2,465.95 |
Hindalco Industries Ltd | Metals – Aluminium | 95,939.65 | 428.70 |
Hindustan Unilever Ltd | FMCG – Household Products | 5,99,580.45 | 2,551.85 |
Housing Development Finance Corporation Ltd | Home Financing | 5,03,044.59 | 2,742.05 |
ICICI Bank Ltd | Private Banks | 6,29,392.25 | 901.30 |
ITC Ltd | FMCG – Tobacco | 4,97,307.13 | 400.15 |
IndusInd Bank Ltd | Private Banks | 87,237.78 | 1,124.35 |
Infosys Ltd | IT Services & Consulting | 5,20,481.69 | 1,258.30 |
JSW Steel Ltd | Iron & Steel | 1,73,340.34 | 721.20 |
Kotak Mahindra Bank Ltd | Private Banks | 3,77,001.27 | 1,895.15 |
Larsen & Toubro Ltd | Construction & Engineering | 3,11,173.76 | 2,214.00 |
Mahindra & Mahindra Ltd | Four Wheelers | 1,45,131.97 | 1,212.95 |
Maruti Suzuki India Ltd | Four Wheelers | 2,62,043.88 | 8,674.65 |
NTPC Ltd | Power Generation | 1,64,455.46 | 169.60 |
Nestle India Ltd | FMCG – Foods | 1,95,187.83 | 20,244.40 |
Oil and Natural Gas Corporation Ltd | Oil & Gas – Exploration & Production | 2,01,473.17 | 160.15 |
Power Grid Corporation of India Ltd | Power Transmission & Distribution | 1,65,074.09 | 236.65 |
Reliance Industries Ltd | Oil & Gas – Refining & Marketing | 16,01,718.02 | 2,367.45 |
SBI Life Insurance Company Ltd | Insurance | 114,637.48 | 1,145.35 |
State Bank of India | Public Banks | 4,85,498.89 | 544.00 |
Sun Pharmaceutical Industries Ltd | Pharmaceuticals | 2,39,621.58 | 998.70 |
Tata Consultancy Services Ltd | IT Services & Consulting | 11,48,759.18 | 3,139.50 |
Tata Consumer Products Ltd | Tea & Coffee | 66,257.11 | 713.20 |
Tata Motors Ltd | Four Wheelers | 1,68,997.14 | 472.15 |
Tata Steel Ltd | Iron & Steel | 1,30,953.73 | 107.15 |
Tech Mahindra Ltd | IT Services & Consulting | 1,00,333.89 | 1,029.95 |
Titan Company Ltd | Precious Metals, Jewellery & Watches | 2,31,321.56 | 2,605.60 |
UPL Ltd | Fertilisers & Agro Chemicals | 55,331.04 | 737.15 |
UltraTech Cement Ltd | Cement | 2,23,217.48 | 7,742.45 |
Wipro Ltd | IT Services & Consulting | 1,97,952.99 | 361.35 |
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?
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:
- 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.
- 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
- The company should be registered with the National Stock Exchange (NSE).
- 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.
- The stock should have differential voting rights.
- The stock should be highly liquid.
- 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!
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