What is Nifty or Nifty 50?

What is Nifty or Nifty 50?
What is Nifty or Nifty 50?
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What is Nifty or Nifty 50?

Overview

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

Adani Ports Infosys
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
Cipla NTPC
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 Tata Motors
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
IndusInd Bank Wipro

Reference: NSE India, Wikipedia

 

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About CA Ankita Khetan 167 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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