What is Nifty or Nifty 50?
Nifty which is also called Nifty 50 an index tracking share prices of 50 well-established and financially sound companies listed on the National Stock Exchange of India (NSE). It is owned and managed by NSE Indices Limited (formerly known as India Index Services & Products Limited). It was started on 1st April 1996. The base period of the index is November 3, 1995, and the value of the index was set at 1000.
NIfty 50 is calculated using 50 large stocks that are actively traded on the NSE. The 50 companies are selected on the basis of the free-float market capitalization. It is a weighted index and gives 29.70% weightage to financial services, 0.73% weightage to industrial manufacturing, and nil weightage to the agricultural sector. All the listed companies are not considered; only the ones which are allowed to trade in F&O segment are eligible to be constituent of the NSE Index.
It is interesting to note that NIFTY 50 is the world’s most actively traded contract. It is also used by investors for purposes such as benchmarking fund portfolios, index-based derivatives, and index funds.
What are NIfty 50 constituents?
As of 10th February 2021, the following are the 50 companies that constitute the Nifty 50
|Asian Paints||Indian Oil Corporation|
|Axis Bank||ITC Limited|
|Bajaj Auto||JSW Steel|
|Bajaj Finance||Kotak Mahindra Bank|
|Bajaj Finserv||Larsen & Toubro|
|Bharti Airtel||Mahindra & Mahindra|
|Bharat Petroleum||Maruti Suzuki|
|Britannia Industries||Nestlé India|
|Coal India||Oil and Natural Gas Corporation|
|Divi’s Laboratories||Power Grid Corporation of India|
|Dr. Reddy’s Laboratories||Reliance Industries|
|Eicher Motors||State Bank of India|
|GAIL||SBI Life Insurance Company|
|Grasim Industries||Shree Cements|
|HCL Technologies||Sun Pharmaceutical|
|HDFC Bank||Tata Steel|
|HDFC Life||Tata Consultancy Services|
|Hero MotoCorp||Tech Mahindra|
|Hindalco Industries||Titan Company|
|Hindustan Unilever||UltraTech Cement|
|ICICI Bank||United Phosphorus Limited|
Reference: NSE India, Wikipedia