nifty 50 – Nifty 50 – Indian Stock Market Information https://nifty50.info Money Talks, We Translate Sat, 09 Nov 2024 11:32:57 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://nifty50.info/wp-content/uploads/2023/05/favicon.png nifty 50 – Nifty 50 – Indian Stock Market Information https://nifty50.info 32 32 What is Nifty 50? https://nifty50.info/nifty-50/ https://nifty50.info/nifty-50/#respond Sun, 08 Sep 2024 06:34:26 +0000 https://nifty50.info/?p=2305 What is Nifty 50?

NIFTY is the name given to the National Stock Exchange of India, which is a benchmark index of the Indian equity market. The National Stock Exchange (NSE) was started on 21 April, 1996. Nifty 50 is the group of the top 50 shares listed on the exchange, which includes the largest large-cap shares of India, which are selected based on their market liquidity and free-float capitalization.

Which are the top companies listed in Nifty 50?

Let us tell you below about the top 10 companies of Nifty 50, their market capital, and the field they are linked to.

  • Reliance Industries Limited whose business is Oil & Gas – Refining & Marketing and its market capital in September 2024 is ₹20,03,987.99.
  • Tata Consultancy Services Limited whose business is IT Services & Consulting and its market capital in September 2024 is ₹13,93,784.79.
  • HDFC Bank Limited whose business is Private Bank and its market capital in September 2024 is ₹11,63,585.70.
  • Bharti Airtel Limited whose business is Telecommunication Services and its market capital in September 2024 is ₹8,28,215.69.
  • ICICI Bank Limited is a private bank and its market capital in September 2024 is ₹7,97,798.94.
  • State Bank of India is a public bank and its market capital in September 2024 is ₹7,49,497.34.
  • Infosys Limited is engaged in IT Services and Consulting and its market capital in September 2024 is ₹6,07,596.73.
  • Hindustan Unilever Limited is engaged in FMCG – Household Products and its market capital in September 2024 is ₹5,58,639.91.
  • ITC Limited whose business is FMCG – Tobacco and its market capital in September 2024 is ₹5,45,584.55.
  • Larsen & Toubro Limited whose business is Construction Engineering and its market capital in September 2024 is ₹4,97,475.12.

What is an Index?

The index that shows the ups and downs of the stock market is called the index. Only the top companies are included in the index and their going up or down causes the market to go up or down.

How many types of nifty indexes are there?

Several types of nifty indexes are there, let’s know about them:-

Nifty50

This is the biggest and major index of India which is called the National Stock Exchange. Companies are included in the index based on free-float market capitalization of shares, inclusion of any share in Nifty 50 is a very difficult task.

Nifty Next 50

50 companies after Nifty 50 are included in this index, mostly if any share has to be removed from the Nifty 50 index, then any share is taken from these after that.

Nifty 500

It includes the top 500 companies listed in the share market and it accounts for almost 95% of the market value of the share market.

Nifty Midcap 150

It includes the top 150 midcap companies listed in the share market based on their free float market capitalization.

Nifty Smallcap 250

It selects the smallest companies listed in the share market based on their free float market capitalization.

Nifty Bank

Nifty Bank Index is a very powerful index that represents Indian banking stocks. It includes the top banks of India and it gives an idea of ​​the top or bottom of the banking sector.

Nifty IT

This index leads the top Indian IT companies, whose upward or downward movement is known through this index.

Nifty Metal

It includes the top companies related to metal work in India, which are involved in iron mining and related activities. It tells us the ups and downs of metal shares.

Nifty Auto

This index includes a group of companies related to the automobile sector and automotive sector, which indicates the upward or downward movement of this sector.

Nifty Reality

The index leading the real estate sector is called nifty reality which shows the performance of the stocks associated with this sector, and how much strength they have to go to the top or bottom.

Nifty FMCG

Sectors related to Fast Moving Consumer Goods i.e. FMCG are included in this and the performance of those companies can be monitored.

Nifty Pharma

We can get information about pharma-related companies from this nifty pharma index which includes top pharma companies.

Nifty Energy

This index shows top Indian energy companies, the energy resources discovered by them, and the impact they have on the shares.

Why is the Nifty index important for investors?

Let’s find out why Nifty is so important and what are its major reasons:-

A bench-marking tool to check portfolio performance

Nifty is a benchmark index of a major Indian stock market that leads the growth and development of companies listed on India’s national stock exchange.

Investors use it as a bench marking tool to check the performance of their portfolio against the overall market.

To track market sentiments and trends

The nifty index gives investors a way to know what the overall sentiments and trends are in the market at the moment, as well as what is happening in which sector and industry. This information is extremely valuable for any investor as it further strengthens their decision making.

Taking investment decisions based on nifty’s performance

While investing, many people use the nifty index as a tool, through which they get to know whether the time is right for investment or whether to hold it for now.

Major points of nifty

  • In 1993, Nifty was declared a majority stock exchange.
  • In 1996, Nifty 50 index was launched, whose base value at that time was 1000 points.
  • In 2000, NSE Nifty50 crossed 1800 due to boom in the IT sector.
  • In 2006, National Stock Exchange Fifty reached 3000 for the first time due to boom in the service sector.
  • In 2007, Nifty50 achieved its first 5000 point milestone.
  • In 2014, Nifty 50 crossed 7000 for the first time when NDA government was formed for the first time.
  • In 2017, due to strong FII investments, Nifty 50 touched the 9000 mark for the first time.
  • In 2017, GST implementation, good monsoon and better corporate earnings made Nifty touch the 10,000 mark for the first time.
  • In 2018, due to a slowdown in crude oil, Indian stock market was able to touch the 11,000 mark, in which the positive sign given by the World Bank on the Indian economy was also important.
  • In 2023, Nifty touched a very major mark of 20,000.
  • In 2024, Nifty has crossed the figure of 25,000.

How is Nifty calculated?

The formula for Nifty calculation is given below:-

Current market value / (Base market capital * 100)

Where: Current market value is the weighted overall market capitalization of all the 50 companies included in the index.

The base market capitalization of Nifty is that of the overall 50 companies listed in Nifty.

What are the benefits of investing in Nifty?

There are many benefits of investing in Nifty, such as:-

Diversification:-

Nifty 50 includes different indices according to sector and market capital. By doing this, investors get the benefit of bringing liquidity in their investment portfolio. And by doing this, the risk of loss in their portfolio is reduced.

Liquidity:-

There is a lot of liquidity in nifty, so it is quite easy to buy and sell its shares.

Transparency:-

Nifty is a completely transparent index which provides detailed information to investors about the companies listed in the index.

What are the factors that affect nifty?

There are many factors that affect the Nifty going up or down, such as the rise in inflation and recession in the whole world. Due to this, you may see a fall or fall in the Nifty. The effect of the increase or decrease in interest rates by banks also plays a part in the share market going up or down.

What things should be kept in mind while investing in nifty 50?

Before investing in nifty, always keep in mind the points given below:-

Company fundamentals

It shows the financial and non-financial aspects of the company such as how much is the company’s revenue, what the profit margin is, what the debt-to-equity ratio is, what the position of the industry is and what the management quality etc is.

Valuation

The value of the company’s shares should be correct according to its income and growth potential, that is why investors look at the valuation of the company to see whether the value of the shares is less or more than the market.

Market trends

There are many factors related to the share market going up or down which you need to know. Like inflation, interest rates, geopolitics etc. These are the factors that take the nifty 50 index up or down.

Investment horizon

It means for how long you want to invest in a share, and what is your future plan in this.

Cost

Every brokerage firm has its own calculation for investing in nifty 50. This brokerage platform charges you brokerage fees, tacit and mutual funds expenses along with many other costs which make a significant difference to your investment.

Frequently Asked Questions on Nifty 50

What is the meaning of nifty and how many companies are there in the nifty 50 index?

Nifty means National Stock Exchange, it is the index of Indian share market. Nifty is an index that tracks the top 50 most traded companies in India, and more than 1600 companies are listed in it.

When was nifty started?

Nifty was started on 22 April, 1996 and for this, 50 top companies filed in different types were selected.

What is bank nifty?

Bank nifty is an index of top 12 banks of India whose movement is based on the movement of these 12 banks going up or down. Through this index you can find out whether investing in banking index is still profitable or not.

When does nifty open?

Nifty is open from 9:15 in the morning till 3:30 in the afternoon which is for 5 days in a week i.e. from Monday to Friday.

What is nifty 50?

Nifty 50 is a group of top 50 companies listed in national stock exchange in which shares of companies of different fields are listed.

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Nifty 50 Companies Weightage – Detailed Information https://nifty50.info/nifty-50-companies-weightage/ https://nifty50.info/nifty-50-companies-weightage/#respond Thu, 05 Sep 2024 07:59:19 +0000 https://nifty50.info/?p=2177 Nifty 50 Companies Weightage – Detailed Information

What is Nifty 50 Companies Weightage – The separate weightage of the top 50 shares is called nifty 50 weightage. Nifty 50 is a benchmark stock market index in India that includes the top 50 companies listed on the NSE.

Friends, the weightage of each company in the Nifty 50 index is determined based on its market value, which is calculated based on the total shares of the company and its current market value.

All the shares listed in Nifty 50 are given some weightage and the Nifty 50 index also moves up or down depending on the move of each share. Shares with higher weightage in nifty have more impact on the share market than shares with lesser weightage.

This is the reason why investors and traders keep a close watch on all the shares listed in the index along with the index separately before making a trade.

What is the importance of nifty?

Nifty 50 index is a very important tool, let’s know about it

By going above or below the nifty 50 index you can roughly guess the future of your shares (if your share is among the index shares). You can use the nifty index as a report card, which tells you what kind of movement is going to happen in the share market or your area in the coming days.

It becomes easy for you to understand the share market through the nifty index because it lets you know which sector is doing well and which is going into recession. However, the index going up or down keeps changing every day and only your experience comes in handy during the rising time.

 

Security Name Industry Weightage (%)
HDFC Bank Ltd Financial Services 11.02
Reliance Industries Ltd Oil, Gas & Consumable Fuels 9.13
ICICI Bank Ltd Financial Services 7.73
Infosys Ltd Information Technology 6.27
ITC Ltd. Fast Moving Consumer Goods 4.14
Tata Consultancy Services Ltd. Information Technology 4.12
Larsen & Toubro Ltd. Construction 3.87
Bharti Airtel Ltd. Telecommunication 3.8
Axis Bank Ltd Financial Services 2.99
State Bank of India Financial Services 2.8
Mahindra & Mahindra Ltd. Automobile and Auto Components 2.62
Kotak Mahindra Bank Ltd Financial Services 2.5
Hindustan Unilever Ltd. Fast Moving Consumer Goods 2.08
Bajaj Finance Ltd. Financial Services 1.87
NTPC Ltd. Power 1.69
Tata Motors Ltd. Automobile and Auto Components 1.64
Sun Pharmaceutical Industries Ltd. Healthcare 1.55
Maruti Suzuki India Ltd Automobile and Auto Components 1.5
HCL Technologies Ltd. Information Technology 1.46
Power Grid Corporation of India Ltd. Power 1.42
Tata Steel Ltd. Metals & Mining 1.35
Titan Company Ltd. Consumer Durables 1.34
UltraTech Cement Ltd. Construction Materials 1.27
Asian Paints Ltd. Consumer Durables 1.24
Adani Ports and Special Economic Zone Ltd. Services 1.02
Coal India Ltd. Oil, Gas & Consumable Fuels 1.02
Oil & Natural Gas Corporation Ltd. Oil, Gas & Consumable Fuels 1.01
Bajaj Auto Ltd. Automobile and Auto Components 1
Hindalco Industries Ltd. Metals & Mining 0.95
Grasim Industries Ltd. Construction Materials 0.93
IndusInd Bank Ltd. Financial Services 0.91
Nestle India Ltd. Fast Moving Consumer Goods 0.86
Tech Mahindra Ltd. Information Technology 0.86
JSW Steel Ltd. Metals & Mining 0.84
Bajaj Finserv Ltd. Financial Services 0.81
Adani Enterprises Ltd. Metals & Mining 0.78
Shriram Finance Ltd. Financial Services 0.76
Cipla Ltd. Healthcare 0.73
Dr. Reddy’s Laboratories Ltd. Healthcare 0.73
Hero MotoCorp Ltd. Automobile and Auto Components 0.68
Wipro Ltd. Information Technology 0.68
Tata Consumer Products Ltd. Fast Moving Consumer Goods 0.65
SBI Life Insurance Company Ltd. Financial Services 0.63
Britannia Industries Ltd. Fast Moving Consumer Goods 0.61
Eicher Motors Ltd. Automobile and Auto Components 0.6
Apollo Hospitals Enterprise Ltd. Healthcare 0.59
HDFC Life Insurance Company Ltd. Financial Services 0.59
Bharat Petroleum Corporation Ltd. Oil, Gas & Consumable Fuels 0.56
Divi’s Laboratories Ltd. Healthcare 0.55
LTIMindtree Ltd. Information Technology 0.47

 

Top 10 Nifty 50 Stocks Weightage: An Overview

Reliance Industries Ltd

RIL means Reliance Industries Limited, it is India’s largest company, and whether it is due to market capital or revenue, no one is as big as this company.

This Mumbai-based company has spread its feet everywhere, be it in any sector like energy, textiles, petrochemicals, retail, telecommunications, renewable energy, financial services, and media. The market value of this company under the leadership of Mukesh Ambani was around 17 lakh crore till December 2023, which would have increased even further.

HDFC Bank Ltd

After acquiring its parent company in April 2022, HDFC Bank has become India’s largest commercial bank. HDFC Bank is recognized as a domestic systemically important bank (D-SIB) by the Reserve Bank of India (RBI). The market value of this bank is currently around 12.50 lakh crore rupees as of 21 December 2023.

ICICI Bank Ltd

ICICI was established in the year 1955 and in 1994 it was changed into ICICI Bank Limited. This group, known as ICICI Banking Corporation Limited, holds a 75% stake in ICICI Bank. In 1995, its name was changed from ICICI to ICICI Bank Limited.

Today, ICICI Bank is India’s 2nd largest commercial bank which deals in savings accounts, current accounts, law life insurance, car insurance as well as several types of credit cards. Apart from these services, ICICI Bank also provides several types of financial services.

Infosys Ltd

Founded by Narayana Murthy and Sudha Murthy, this IT tech giant is known as Infosys. If we talk in terms of revenue, it ranks 2nd in Indian IT. Their IT services include many types of IT services such as outsourcing, consulting, IT service, and digital marketing.

This company which started with just 10,000 rupees has more than 3.50 lakh employees today. Infosys provides its IT services in more than 56 countries.

ITC Ltd

ITC whose full name is Imperial Tobacco Company of India Limited was a British-owned company on 24 August 2010. In 1970, the name of this company was changed to Indian Tobacco Company Ltd. And then again in 1974, its name was changed to ITC Limited.

Their main business is tobacco, FMCG, packaging, hotels, IT as well as agri-business and other activities. As of today, this is the first such company in India whose business is spread across multiple industries.

Tata Consultancy Services Ltd (TCS)

TCS full name is Tata Consultancy Services. Tata Consultancy Services, which provides IT services and consulting services and has its headquarters in Mumbai. It ranks 2nd in India in terms of market value and is one of the top global IT services brands. It also handles the TCS manufacturing facility in Mapua, located in Goa.

Larsen & Toubro Ltd (L&T)

L&T is a company with more than 70 years of experience. This company has expertise in construction and engineering. LT has also established itself in the Finance, IT, and power industry and this company is providing different types of services in many countries across the world.

Axis Bank Ltd

Axis Bank is one of the major private banks in India and its head office is in Mumbai. This bank provides banking and financial services in many other countries besides India.

People knew this bank as UTI Bank from 1997 to 2007. Later its name was changed to Axis Bank, Axis Bank provides its services in retail banking and corporate banking.

Apart from providing all types of loans and credit cards, this bank also provides many other financial services to people.

Kotak Mahindra Bank Ltd

Kotak Mahindra Bank Limited is one of the major banks in India which operates in both retail and corporate banking. It operates in all types of finance-related fields, be it savings account or current account or any type of home loan, car loan personal, etc., or any type of national or international credit, you will find Kotak Bank in every field.

It got the banking license from the Reserve Bank of India in February 2003, making it the 1st non-banking financial company. In 2015, they merged it with ING Vysya Bank and today it provides this type of finance and investment service to people and companies.

Hindustan Unilever Ltd

Just having Hindustan in the name does not make you Hindustani, similar is the story of Hindustan Unilever Ltd which was started by a company named Sunlight Soap Bars of England.

Today its head office is in Mumbai and in 2023, the market value of this company reached 6 lakh crore rupees. It is a very big name in India in FMCG i.e. Fast Moving Consumer Goods, generally, FMCG products bought from the market are theirs.

Nifty 50 Sector wise Weightage – Detailed Information

Nifty 50 Companies Weightage top 10 stocks

Sector Weight (%)
Financial Services 32.6
Information Technology 14.17
Oil, Gas & Consumable Fuels 11.97
Fast Moving Consumer Goods 8.47
Automobile and Auto Components 8.31
Healthcare 4.5
Construction 3.87
Telecommunication 3.8
Metals & Mining 3.55
Power 3.14
Consumer Durables 2.59
Construction Materials 2.06
Services 0.97

 

Nifty 50 Companies Weightage – FAQ

Nifty 50 Companies Weightage frequently asked questions
 

What is Nifty?

Nifty means National Stock Exchange, it refers to the index of the Indian stock market. The name of Nifty is taken from nifty50, it shows the indications of the top 50 shares listed in it.

How to buy nifty50?

If you want to invest in Nifty 50 then for that you will have to buy its ETF or index fund. For buying these you can get your account opened from local brokers or can talk to your bank regarding this, nowadays a lot of online companies have come up using apps you can now easily open an account.

How is Nifty 50 different from the BSE Sensex?

While both Nifty50 and Sensex are indexed in India, both are completely different from each other because while Nifty50 includes the top 50 companies in its index, Sensex lists the top 30 shares on the Bombay Stock Exchange. The process and criteria for selecting companies for both these indexes are completely different.

Which are the heaviest-weight shares of Nifty 50?

The heaviest-weight shares of Nifty 50 are those whose market capital is very large because their market capitalization also causes fluctuations in the market.

How does Nifty 50 select a company?

If nifty 50 has to choose a company then it looks at its liquidity, its market capitalization, which sector it represents, its financial stability, and the history of the company and its board members. After looking at all this, a company is selected by nifty 50.

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Nifty 50 Stocks List https://nifty50.info/nifty-50-stocks-list/ https://nifty50.info/nifty-50-stocks-list/#respond Sun, 09 Jul 2023 06:20:22 +0000 https://nifty50.info/?p=368 Nifty 50 Stocks List

Hello friends, today we are going to tell you about the list of Nifty 50 stocks that take the stock market up or down.

List of stocks in Nifty 50

  1. Adani Ports Sez Ltd – अदानी पोर्ट्स सेज़ लिमिटेड
  2. Apollo Hospitals Ltd – अपोलो हॉस्पिटल्स लिमिटेड
  3. Asian Paints Ltd – एशियन पेंट्स लिमिटेड
  4. Axis Bank Ltd – एक्सिस बैंक लिमिटेड
  5. Bajaj Auto Ltd – बजाज ऑटो लिमिटेड
  6. Bajaj Finance Ltd – बजाज फाइनेंस लिमिटेड
  7. Bajaj Finserv Ltd – बजाज फिनसर्व लिमिटेड
  8. Bharat Petroleum Ltd – भारत पेट्रोलियम लिमिटेड
  9. Bharti Airtel Ltd – भारती एयरटेल लिमिटेड
  10. Britannia Industries Ltd – ब्रिटानिया इंडस्ट्रीज लिमिटेड
  11. Cipla Ltd – सिप्ला लिमिटेड
  12. Coal India Ltd – कोल इंडिया लिमिटेड
  13. Divis Laboratories Ltd – डिविस लेबोरेटरीज लिमिटेड
  14. Dr Reddys Laboratories Ltd – डॉ रेड्डीज लैबोरेटरीज लिमिटेड
  15. Eicher Motors Ltd – आयशर मोटर्स लिमिटेड
  16. Grasim Industries Ltd – ग्रासिम इंडस्ट्रीज लिमिटेड
  17. Hcl Technologies Ltd – एचसीएल टेक्नोलॉजीज लिमिटेड
  18. Hdfc Bank Ltd – एचडीएफसी बैंक लिमिटेड
  19. Hdfc Life Insurance Ltd – एचडीएफसी लाइफ इंश्योरेंस लिमिटेड
  20. Hero Motocorp Ltd – हीरो मोटोकॉर्प लिमिटेड
  21. Hindalco Industries Ltd – हिंडाल्को इंडस्ट्रीज लिमिटेड
  22. Hindustan Unilever Ltd – हिंदुस्तान यूनिलीवर लिमिटेड
  23. Icici Bank Ltd – आईसीआईसीआई बैंक लिमिटेड
  24. Indian Oil Corporation Ltd – इंडियन ऑयल कॉर्पोरेशन लिमिटेड
  25. Indusind Bank Ltd – इंडसइंड बैंक लिमिटेड
  26. Infosys Ltd – इन्फोसिस लिमिटेड
  27. Itc Ltd – आईटीसी लिमिटेड
  28. Jsw Steel Ltd – जेएसडब्ल्यू स्टील लिमिटेड
  29. Kotak Mahindra Bank Ltd – कोटक महिंद्रा बैंक लिमिटेड
  30. Lt Larsen Toubro Ltd – लेफ्टिनेंट लार्सन टुब्रो लिमिटेड
  31. Mahindra Mahindra Ltd – महिंद्रा महिंद्रा लिमिटेड
  32. Maruti Suzuki Ltd – मारुति सुजुकी लिमिटेड
  33. Nestle India Ltd – नेस्ले इंडिया लिमिटेड
  34. Ntpc Ltd – एनटीपीसी लिमिटेड
  35. Oil Natural Gas Corporation Ltd – आयल एंड नेचुरल गैस निगम लिमिटेड
  36. Power Grid Corporation Of India Ltd – पावर ग्रिड कॉर्पोरेशन ऑफ़ इंडिया
  37. Reliance Industries Ltd – रिलायंस इंडस्ट्रीज लिमिटेड
  38. Sbi Life Insurance Ltd – एसबीआई लाइफ इंश्योरेंस लिमिटेड
  39. Shree Cement Ltd – श्री सीमेंट लिमिटेड
  40. State Bank Of India Ltd – भारतीय स्टेट बैंक लिमिटेड
  41. Sun Pharmaceutical Ltd – सन फार्मास्युटिकल लिमिटेड
  42. Tata Consumer Products Ltd – टाटा कंज्यूमर प्रोडक्ट्स लिमिटेड
  43. Tata Motors Ltd – टाटा मोटर्स लिमिटेड
  44. Tata Steel Ltd – टाटा स्टील लिमिटेड
  45. Tcs Tata Consultancy Services Ltd – टीसीएस टाटा कंसल्टेंसी सर्विसेज लिमिटेड
  46. Tech Mahindra Ltd – टेक महिंद्रा लिमिटेड
  47. Titan Ltd – टाइटन लिमिटेड
  48. Ultratech Cement Ltd – अल्ट्राटेक सीमेंट लिमिटेड
  49. Upl United Phosphorus Ltd – यूपीएल यूनाइटेड फॉस्फोरस लिमिटेड
  50. Wipro Ltd – विप्रो लिमिटेड

Nifty 50 Stocks List FAQ

What is the Nifty 50 Index?

If you invest your money in the share market, then you will know that the shares that run the share market, which come under Nifty, are only 50 shares, and they are called the Nifty 50 index.

How to invest in Nifty 50 shares?

If you want to invest in shares, then it would be better that you invest in the Nifty 50 index, you can invest in the ways given below:-

First of all, choose a reliable share broker.

If you want, you can also open a demat account online (I believe that you can also choose a local broker near your area).

After opening a demat account, you can deposit as much amount as you want. (You can withdraw money whenever you want and can also deposit more money whenever you want).

Now you can invest as much as you want in any share of Nifty 50.

Try to invest only 10-20% in one company or field, and keep shares of 5 different companies or fields with you.

What is Nifty 50?

Nifty 50 represents the weighted average of the top 50 companies of India listed on the National Stock Exchange. Nifty 50 is the abbreviation of National Stock Exchange 50. Nifty 50 is a market index.

Like any index, it represents a portfolio of investment holdings in blue chip companies. It includes Reliance Industries, State Bank of India, Maruti Suzuki, TCS, Asian Paints, and 45 other industry-leading companies.

Many mutual funds use Nifty as their benchmark. Nifty was introduced by the National Stock Exchange in the year 1996.

How are Nifty 50 stocks selected?

Nifty has a very well-defined and transparent methodology for selecting its companies. This selection process can be seen in four parts. The basic construct of companies, liquidity rules, the universe of companies, re-balancing, and constitution rules.

To become a part of Nifty, a company has to first be listed on the National Stock Exchange. The company should also be available for trading in the futures and options segment of NSE. Talking about the basic construct, the selected company should be among the top 50 companies in terms of free-float market cap.

The third thing is liquidity and here only those companies are selected which have high trading volume are.

The final selection is the semi-annual re-balancing exercise, which decides which stocks will remain in Nifty, which new stocks will come, and which existing stocks will exit Nifty. This process takes place every year in June and December, i.e. after almost every 6 months.

Nifty keeps changing with time

The sectoral composition of Nifty has changed over time. At the time of its inception, Nifty had no technology companies and only one private bank. Today, Nifty has four private banks and two big IT companies in the form of Infosys and TCS in its top 10 companies.

But it will not be a surprise if the Nifty changes significantly in the coming 5, 10, and 20 years from now. With time, we will see new companies and new sectors emerging. Like 5 years ago there were no insurance companies here, but today there are. Today we will have Paytm, Zomato, Suzlon and other new consumer-facing businesses which may make their place in the index in the coming time.

Nifty50 Started with a base of 1000 points

Nifty 50 started its journey with a base value of 1000 points. Today it has crossed the 25,000 mark (August 2024). Thus it has given much higher returns than other asset classes like gold and real estate.

However, reflecting the nature of equity markets, Nifty 50 has also seen many ups and downs. For example, in the year 2008, Nifty fell by more than 50 percent, and in the very next year 2009 it rose by 76 percent.

We hope you like our article on Nifty 50 Stocks List.

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