What is nifty ?
The nifty 50 is a group of 50 large cap shares .There are two stock exchanges available in India; one is the NSE (National Stock Exchange) and the second one is the BSE (Bombay Stock Exchange) . Here are some misconceptions about NSE & BSE. Some people think that NSE is having more companies than BSE but that all are fake because BSE has over 5000 companies listed and similarly NSE is having 1600 companies listed.
So assume that in the whole vegetable market how we know the rate of veggies are high or low as.you need to look one by one all vegetables rate like what is the rate of potato or what is rate of onion but if you have 5000 variety of veggies it take all of your time to knowing all rates of veggies.For make your work as easy there are formation of βINDEXβ that is caring out all markets data all of the stocks on exchange are going up or down that shows index so that are NIFTY.
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How NIFTY decides 50 stocks ?
The NIFTY 50 is a high value index on the NSE (national stock exchange), otherwise sensex is a high value index BSE. Nifty world was made by 2 words National Fifty, and sensex is a short-form of sensitive index.The Nifty 50 is carrying India’s high value 50 stocks that makes a measure impact on NSE(national stock exchange) or Indian market .
Some kind Nifty 50 all Fifty companies are india’s top 50 companies that are listed on both stock exchanges somehow there are also having nifty 100 or Nifty 200 or nifty 500 Just like Nifty 50 is carrying out india’s top 50 companies like nifty 100 also caring india’s top 100 companies like NSE OR BSE Nifty 100 also carrying nifty 50 companies and Nifty 200 also caring india’s top two hundred companies like nifty 50 and Nifty 100.
Somehow people are saying βwhy nifty 50 shows all NSE companies data because already nifty is caring 1600 companies then how only 50 companies show market trend ?
So that was because NIFTY Top 50 companies carry more than 50% of the Indian stock market. They are all huge companies that are listed on NSE OR BSE just like Reliance Industries or TATA group of industries.so that if the majority of 50 stocks are carrying out 50 % of market cap of indian market so it can change the trends 0f the market . Only
Reliance industries have 10% weightage on Nifty 50 NSE(National stock exchange). Hence NIFTY50 is an index that describes market trends up or down. We can also say like Bull or Bear.Bull means uptrend or bear means Down trend in the market.
Why are we called Bull or Bear ?
Because when a Bull saw his target or enemy he tries to push it up with his horns so many peoples in the market are trying to push market to the up that’s why they are known as Bull as well as Bear is push down his claw to get his enemy or food as like bull some peoples are trying to push market up so some people are trying to pull down the market for getting better deals.
NSE(National Stock Exchange) was launched in 1992 as per Business view NSE is the world’s 3rd number of stock exchanges having more than 1600 companies inside .
NIFTY50 is possessed and overseen by NSE Indices (recently known as India Index Services and Products Limited), which is an entirely claimed auxiliary of the NSE Strategic Investment Corporation Limited.NSE Indices had a promoting and permitting concurrence with Standard and Poor’s for co-marking value files until 2013. The Nifty 50 record was sent off on 22 April 1996, and is one of the many stock files of Nifty.
Like Nifty50 the world has more indices like nifty or sensex than india. So NSE(National Stock Exchange) having five category of index each one is having there indices
1. Board Market Indices
- NIfty50
- Nifty Next 50
- Nifty 100
- Nifty 200
- Nifty 500
- Nifty midcap 50
- Nifty midcap 100
- Nifty midcap 150
- Nifty small cap 50
- Nifty smallcap 100
- Nifty smallcap 250
- Nifty Mid Small 400
- India vix
2.Sectoral Indices
- Nifty Bank
- Nifty Auto
- Nifty Fin Service
- Nifty FMCG
- Nifty IT
- Nifty Media
- Nifty Metal
- Nifty Pharma
- Nifty Psu Bank
- Nifty PVT Bank
- Nifty Reality
3.Strategy Indices
- Nifty DIV Opps 50
- Nifty Growsect 15
- Nifty 100 Quality 30
- Nifty50 value 20
- Nifty50 TR 2X LEV
- Nifty50 PR 2X LEV
- Nifty50 TR 1X INV
- Nifty50 PR 1X INV
- Nifty50 DIV Point
- Nifty Alpha 50
- Nifty50 EQL WGT
- Nifty100 EQL WGT
- NIFTY100 LOWVOL30
- NIFTY200 QUALITY30
4.Thematic Indices
- NIFTY COMMODITIES
- NIFTY CONUMSPTION
- NIFTY CPSE
- NIFTY ENERGY
- NIFTY INFRA
- NIFTY100 LIQ15
- NIFTY MID LIQ 15
- NIFTY MNC
- NIFTY PSE
- NIFTY SERV SECTOR
5.Fixed Income Indices
- NIFTY GS 8 13YR
- NIFTY GS 10YR
- NIFTY GS 10YR CLN
- NIFTY GS 4 8YR
- NIFTY GS 11 15 YR
- NIFTY GS COMPSITE
Many times people ask that suppose if Sensex is an Index of 30 companies then those 30 companies should be affected. I have invested in a particular company so why does my stocks get affected ?
Many times , a sentiment of the market is called group psychology. You must have heard a proverbβ all ships rise with the rising tide, So when there is a high tide, All ships rise with it. And with the low tide, all ships also go down. Similarly, if the sensex or the market does very well, then sometimes bad companies also rise with it and sometimes when the sensex goes down, many good companies also go down. And it becomes very important for you to analyze.
What Is Nifty 50 In Stock Market?
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The Nifty Fifty Index was launched on May 31, 2004, and currently consists of fifty companies from various sectors of the economy.
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The Nifty Fifty index is an indicator that tracks the performance of the 50 largest stocks listed on the Bombay Stock Exchange (BSE). It is considered to be a good gauge for the overall economic activity in India.
What Is Nifty 50?
The Nifty Fifty is a stock market index that measures the performance of the top 50 stocks listed on the Bombay stock exchange. This index is used as a measure of the overall economic activity in the country.
The Nifty Fifty Index consists of the top fifty companies listed on the BSE. These companies represent approximately half of the total value of shares traded on the exchange. The index is calculated based on the closing price of each company at the end of every trading day. The index is then adjusted to reflect the change in prices during the previous five trading days.
The Nifty Fifty Index is one of the most popular indices used to track the Indian stock markets. It is calculated based on the closing prices of the top fifty companies traded on the BSE. The Nifty Fifty Index consists of the following companies: Reliance Industries Limited, Tata Motors Ltd., Hindustan Petroleum Corporation Ltd., State Bank of India, Bharat Petroleum Corp., ONGC Videsh Ltd., Coal India Ltd., Infosys Ltd., Wipro Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., Yes Bank Ltd., Indiabulls Housing Finance Ltd., Maruti Suzuki India Ltd., HUL Ltd., Dr Reddy’s Laboratories Ltd., Hero MotoCorp Ltd., Larsen & Toubro Ltd., Adani Ports Ltd., Bharti Airtel Ltd., DLF Ltd., Power Grid Corp. Of India Ltd., Asian Paints Ltd., RIL Ltd., SBI Life
The Nifty Fifty Index is one of the most popular indices used to measure the performance of Indian equities. The Nifty Fifty index consists of the top fifty companies listed on the BSE. These companies represent approximately half of the total value of shares traded on the exchange. The index is calculated based on the closing price of each company at the end of every trading day.
The Nifty Fifty Index is one of the most popular indices used to measure the performance of Indian equities. It is calculated based on the closing price of the top fifty companies traded on the BSE. The Nifty Fifty index has been around since
The Nifty Fifty Index is one of the most popular indices used to measure the performance of Indian equities. It is calculated based on the price movements of the top fifty companies listed on the BSE. The Nifty Fifty index has been around since 1952 and is currently valued at Rs. 1,000.
The Nifty Fifty Index is one of the most popular indices used to measure the performance of Indian equities. The Nifty Fifty is composed of the top fifty companies based on their market capitalization. These companies represent the entire spectrum of the Indian economy. The Nifty Fifty consists of both large and small companies. The Nifty Fifty has been around since 1952.
The Nifty Fifty Index is one of the most popular indices used to measure the performance of Indian equities. The Nifty Fifty consists of the top fifty companies based on their market capitalization. These companies represent around 5% of the total market value of the BSE. The index is calculated using the weighted average price of the shares of the constituent companies. The weightage of each company is determined according to the size of its shareholding.
The Nifty Fifty Index is one of the most popular indices used in the Indian stock markets. It is calculated based on the closing prices of the fifty largest companies traded on the BSE. These companies account for approximately half of the total value of shares traded on the exchange. The Nifty Fifty Index has been around since
The latest 2022 list of Nifty50 stocks
Sector representation
| Sector | Weight(%) |
| Financial services | 35.17 |
| Information Technology | 18.17 |
| Oil, gas and consumable fuels | 13.62 |
| Fast Moving Consumer | 7.18 |
| Automobile and Auto Components | 4.80 |
| Healthcare | 4.00 |
| Metals and Mining | 3.39 |
| Consumer Durables | 3.20 |
| construction | 2.79 |
| Telecommunication | 2.33 |
| Construction and material | 2.23 |
| power | 1.81 |
| Services | 0.73 |
| Chemicals | 0.55 |
All Companies of Financial sector and their weightage
Top 10 Companies of Nifty50 by Weightage
| Companyβs Name | Weight (%) |
| Reliance Industries Ltd. | 11.89 |
| Infosys Ltd. | 9.13 |
| HDFC Bank Ltd. | 8.43 |
| ICICI Bank Ltd. | 6.64 |
| HDFC Ltd. | 5.66 |
| Tata Consultancy Services Ltd. | 5.07 |
| Kotak Mahindra Bank Ltd. | 3.37 |
| ITC Ltd. | 2.87 |
| Larsen and Toubro Ltd. | 2.79 |
| Axis Bank Ltd. | 2.63 |
| Company Name | Stock Symbol | Weightage | Sector |
| Reliance Industries Ltd. | RELIANCE | 10.56% | Petroleum Products |
| HDFC Bank Ltd. | HDFCBANK | 8.87% | Banks |
| Infosys Limited | INFY | 8.6% | Software |
| Housing Development Fin. Corp. Ltd. | HDFC | 6.55% | Finance |
| ICICI Bank Ltd. | ICICIBANK | 6.72% | Banks |
| Tata Consultancy Services Ltd. | TCS | 4.96% | Software |
| Kotak Mahindra Bank Limited | KOTAKBANK | 3.91% | Banks |
| Hindustan Unilever Ltd. | HINDUNILVR | 2.81 % | Consumer Non Durables |
| Axis Bank Ltd. | AXIS BANK | 2.29% | Banks |
| Larsen and Toubro Ltd. | LT | 2.89% | Construction Project |
| ITC Ltd. | ITC | 2.6% | Consumer Non Durables |
| State Bank of India | SBIN | 2.4% | Banks |
| Bajaj Finance Ltd. | BAJFINANCE | 2.52% | Finance |
| Asian Paints Limited | ASIAN PAINT | 1.92% | Consumer Non Durables |
| Bharti Airtel Ltd. | BHARTIARTL | 2.33% | Telecom β Services |
| HCL Technologies Ltd. | HCLTECH | 1.68% | Software |
| Maruti Suzuki India Limited | MARUTI | 1.27% | Auto |
| Tata Steel Ltd. | TATASTEEL | 1.14% | Ferrous Metals |
| Wipro Ltd. | WIPRO | 1.28% | Software |
| UltraTech Cement Limited | ULTRACEMCO | 1.16% | Cement & Cement Products |
| Mahindra & Mahindra Ltd. | M&M | 1.09% | Auto |
| Bajaj Finserv Ltd. | BAJAJFINSV | 1.42% | Insurance |
| Sun Pharmaceutical Industries Ltd. | SUNPHARMA | 1.1% | Pharmaceuticals |
| Titan Company Ltd. | TITAN | 1.35% | Consumer Durables |
| Tech Mahindra Ltd. | TECHM | 1.3% | Software |
| Dr Reddys Laboratories Ltd. | DRREDDY | 0.77% | Pharmaceuticals |
| JSW Steel Ltd. | JSWSTEEL | 0.82% | Ferrous Metals |
| Nestle India Ltd. | NESTLEIND | 0.93% | Consumer Non Durables |
| Indusind Bank Ltd. | INDUSINDBK | 0.7% | Banks |
| Tata Motors Ltd. | TATAMOTORS | 1.12% | Auto |
| Power Grid Corporation of India Ltd. | POWERGRID | 0.96% | Power |
| Grasim Industries Ltd. | GRASIM | 0.86% | Cement & Cement Products |
| HDFC Life Insurance Company Limited | HDFCLIFE | 0.86% | Insurance |
| Divis Laboratories Ltd. | DIVISLAB | 0.85% | Pharmaceuticals |
| NTPC Limited | NTPC | 0.82% | Power |
| Hindalco Industries Ltd. | HINDALCO | 0.82% | Non β Ferrous Metals |
| Bajaj Auto Limited | BAJAJ-AUTO | 0.57% | Auto |
| Adani Ports & Special Economic Zone | ADANIPORTS | 0.68% | Transportation |
| Cipla Ltd. | CIPLA | 0.67% | Pharmaceuticals |
| Tata Consumer Products Limited | TATACONSUM | 0.63% | Consumer Non Durables |
| SBI Life Insurance Company Ltd. | SBILIFE | 0.69% | Insurance |
| Bharat Petroleum Corporation Ltd. | BPCL | 0.48% | Petroleum Products |
| UPL Ltd. | UPL | 0.51% | Pesticides |
| Britannia Industries Ltd. | BRITANNIA | 0.57% | Consumer Non Durables |
| Oil & Natural Gas Corporation Ltd. | ONGC | 0.7% | Oil |
| Eicher Motors Ltd. | EICHERMOT | 0.45% | Auto |
| Hero MotoCorp Ltd. | HEROMOTOCO | 0.43% | Auto |
| Shree Cement Ltd. | SHREECEM | 0.47% | Cement & Cement Products |
| Coal India Ltd. | COALINDIA | 0.43% | Minerals/Mining |
| Indian Oil Corporation Ltd. | IOC | 041% | Petroleum Products |
Eligibility Criteria for Nifty 50 Stock List
As per the NIFTY 50 index methodology published by the IISL, the eligibility criteria that must be fulfilled by a company to become a part of the index are as follows:
- The company must be based in India and listed on the National Stock Exchange.
- In order to be included in the NIFTY 50 index, the stock must be available for trading in the NSEβs Futures & Options segment and must be a part of NIFTY 100.
- Equity securities with Differential Voting Rights (DVR) are eligible to be a part of the index, provided they fulfil certain requirements.
- The stock under consideration must have traded at an average impact cost of 0.50% or less, over the course of the last six months for 90% of the observations. Impact cost is nothing but the cost incurred by the buyer or seller while executing a transaction of a given security, with a pre-defined order size.
- The companyβs trading frequency must be 100% for the previous six months.
- The average free float market capitalisation of the company must be at least 1.5 times the average free float market capitalisation of the smallest constituent of the NIFTY 50.
How is NIFTY 50 Calculated
- Free float market capitalisation is the market capitalisation calculated for all the shares which are publicly available for trading. It is important to remember that free float market capitalization does not take those shares which are held by promoters, government, employee welfare funds, or any corporate entity. The proportion of shares which are held by the general public and are available for trading is represented by a ratio known as Investable Weight Factor (IWF).
- The base year is 1995 and the base value is 1,000. The base market capital is the market capitalisation of the company in the year 1995.
- NIFTY 50 index is calculated for the 50 stocks which are actively traded on the NSE.
- Base market capital is the aggregate market capitalisation of each stock in the index during the base period.
Therefore,
Free float market capitalisation = (Shares outstanding) x (Price) x (IWF)
Index Value = (Current Market Value)/(Base Market Capital) x (Base Index Value)
To understand this better, let us consider an example. For the sake of simplicity, let us assume that NIFTY comprises only two companies – X and Y.
Company X has a total of 1,000 shares of which, 300 are held by promoters while the remaining 700 are held by the general public, and are available for trading. As for the Company B, it has a total of 1,500 shares of which 1,000 are available for active trading and the remaining 500 are with promoters, governments and corporate entities.
The share price of Company X is Rs.20 and the share price of Company Y is Rs.30. The base market value of the two companies is Rs.6,000.
Hence,
Xβs free float market capitalisation = 700 x 20 = Rs.14,000
Yβs free float market capitalisation = 1,000 x 30 = Rs. 30,000
Total free float market cap of the two companies = Rs.44,000. Therefore, NIFTY = (44,000)/(6,000) x 1,000 = 7,333.3
