The Nifty 50 or Nifty is the flagship benchmark of the National Stock Exchange of India also called NSE, which is a well-diversified index, comprising the top 50 companies of India in terms of free-float market capitalization that are actively traded on the market. The index is supposed to reflect the health of the listed universe of Indian companies, and hence the broader economy of India, in all market conditions.
Nifty 50 Companies
Top Nifty 50 companies in India 2021 are:
|52 Weeks High
|52 Weeks Low
Officially called the Nifty50, the index is derived from the listed companies on NSE, using the free-float market capitalization method, which is essentially the number of shares in active circulation in the market at a given point of time.
Just like Sensex, the benchmark of BSE, today the Nifty Fifty is used for benchmarking portfolios, returns of mutual fund schemes, and launching index funds.
The Nifty index was introduced on April 22, 1996, initially with a base value of 1,000 counted from November 3, 1995. Live Nifty quotes are available on NSEIndia.com, iShareMarket.com, other web platforms, and National TV channels at any point of time.
The Nifty brand and indices are managed & operated by the Mumbai-based India Index Services and Products Limited (IISL), which itself is a subsidiary of the National Stock Exchange of India.
How Companies are selected in Nifty 50
There are defined eligibility criteria for the selection of Nifty constituent stocks from listed companies on the National Stock Exchange of India. For a stock to qualify for inclusion in the Nifty50 constitution, it must have traded at an average impact cost of 0.50 % or less for six months and for 90 percent.
The company must have a listing history of at least six months on the National Stock Exchange of India. However, a newly-listed company that got listed through the IPO may become eligible for inclusion in the Nifty 50, if it meets the normal eligibility criteria for a three-month period instead of six months.
Along with the above conditions, only those stocks which are eligible for trade-in the F&O segment of NSE are eligible for inclusion for the Nifty constitution.
Weightage of Sectors in Nifty Index
As of September 20, 2017, the Nifty had:
- 35.73 percent of components from the financial services sector
- 14 percent from the energy sector
- 11.46 percent of the information technology sector
- 10.64 percent from the automobile sector
- 10.13 percent of the consumer goods sector
- Six private banks.
Nifty 50 other Variants
The Nifty index also has other variants such as Nifty Junior, Nifty50 USD, Nifty50 Total Returns index and NIFTY50 Dividend Points Index.