What is Nifty 50? The stock market is one of the most attractive investment avenues in India. The ability of the stock market to generate handsome returns makes it very popular among investors. In the recent past decade, the stock market has grown the money of investors by manifold and it continues to do so. While talking about the stock market you must have come across the term Nifty 50. It is one of the most common terms for those trading and investing in the Indian stock market. In this article, we shall learn more about the meaning of Nifty 50.
Meaning of Nifty 50
What is Nifty?: On 21st April the National Stock Exchange of India introduced an equity benchmark known as Nifty. The term Nifty is derived from two words; National and Fifty. Nifty 50 consists of 50 stocks traded on the exchange. These 50 stocks represent the 12 different sectors of the economy.
The Nifty 50 serves many purposes like benchmarking fund portfolios, index funds, and index-based derivatives. NSE Indices Limited (formerly known as India Index Services & Products Limited), owns and manages Nifty 50. Nifty 50 is the core product of NSE indices.
Let us now learn about the features of Nifty 50.
Features of NSE 50
- The free float market capitalization of Nifty 50 index stocks is 66.8% as on March 29, 2019.
- The data for the last six months as on March 29, 2019, shows that Nifty 50 index constituents were 53.4% approximately of the total traded value of stocks on the NSE.
- Portfolio size of Rs. 50 lakhs of the Nifty 50 has an impact cost of 0.02% for the month of March 2019.
- For derivatives trading, Nifty 50 stocks are ideal.
Since you are now aware of the basic concept and other important information related to the Nifty 50, let us now learn about the stocks that are part of the Nifty 50 Index along with their sector and security symbol.
NSE India Website: https://www.nseindia.com/
List of Stocks Part of NSE 50 Index :
Company Name | Industry |
Adani Ports and Special Economic Zone Ltd. | SERVICES |
Ambuja Cements Ltd. | CEMENT & CEMENT PRODUCTS |
Asian Paints Ltd. | CONSUMER GOODS |
Aurobindo Pharma Ltd. | PHARMA |
Axis Bank Ltd. | FINANCIAL SERVICES |
Bajaj Auto Ltd. | AUTOMOBILE |
Bajaj Finance Ltd. | FINANCIAL SERVICES |
Bharat Petroleum Corporation Ltd. | ENERGY |
Bharti Airtel Ltd. | TELECOM |
Bharti Infratel Ltd. | TELECOM |
Bosch Ltd. | AUTOMOBILE |
Cipla Ltd. | PHARMA |
Coal India Ltd. | METALS |
Dr. Reddy’s Laboratories Ltd. | PHARMA |
Eicher Motors Ltd. | AUTOMOBILE |
GAIL (India) Ltd. | ENERGY |
HCL Technologies Ltd. | IT |
HDFC Bank Ltd. | FINANCIAL SERVICES |
Hero MotoCorp Ltd. | AUTOMOBILE |
Hindalco Industries Ltd. | METALS |
Hindustan Petroleum Corporation Ltd. | ENERGY |
Hindustan Unilever Ltd. | CONSUMER GOODS |
Housing Development Finance Corporation Ltd. | FINANCIAL SERVICES |
I T C Ltd. | CONSUMER GOODS |
ICICI Bank Ltd. | FINANCIAL SERVICES |
Indiabulls Housing Finance Ltd. | FINANCIAL SERVICES |
Indian Oil Corporation Ltd. | ENERGY |
IndusInd Bank Ltd. | FINANCIAL SERVICES |
Infosys Ltd. | IT |
Kotak Mahindra Bank Ltd. | FINANCIAL SERVICES |
Larsen & Toubro Ltd. | CONSTRUCTION |
Lupin Ltd. | PHARMA |
Mahindra & Mahindra Ltd. | AUTOMOBILE |
Maruti Suzuki India Ltd. | AUTOMOBILE |
NTPC Ltd. | ENERGY |
Oil & Natural Gas Corporation Ltd. | ENERGY |
Power Grid Corporation of India Ltd. | ENERGY |
Reliance Industries Ltd. | ENERGY |
State Bank of India | FINANCIAL SERVICES |
Sun Pharmaceutical Industries Ltd. | PHARMA |
Tata Consultancy Services Ltd. | IT |
Tata Motors Ltd. | AUTOMOBILE |
Tata Steel Ltd. | METALS |
Tech Mahindra Ltd. | IT |
UPL Ltd. | FERTILISERS & PESTICIDES |
UltraTech Cement Ltd. | CEMENT & CEMENT PRODUCTS |
Vedanta Ltd. | METALS |
Wipro Ltd. | IT |
Yes Bank Ltd. | FINANCIAL SERVICES |
Zee Entertainment Enterprises Ltd. | MEDIA & ENTERTAINMENT |
Let us now learn about the method of computation of Nifty 50 Index
Method of Computation
Nifty 50 is computed on the basis of the free float market capitalization weighted method. The index level reflects the market value of all the stocks that are part of the index according to a particular base period. In addition, this method of computation considers the changes in the index and furthermore includes various actions taken by the companies like a right issue, stock split, etc. without having any effect on the index value.
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