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NIFTY 50

Indian stock market index From Wikipedia, the free encyclopedia

NIFTY 50
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The NIFTY 50 is an Indian stock market index that represents the float-weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.[1][2] Nifty 50 is owned and managed by NSE Indices, which is a wholly owned subsidiary of the National Stock Exchange of India.[3][4] The Nifty 50 index was launched on 22 April 1996 with a base date of 3 November 1995 and with 1000 as its base value.[1][5][6]

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The NIFTY 50 index ecosystem consists of index funds (both onshore and offshore mutual funds and ETFs), and futures and options at NSE and NSE International Exchange (through GIFT Nifty).[7][8] In 2016, NIFTY 50 was reported by the WFE and FIA as the world's most actively traded index options contract, but it was later overtaken by Nifty Bank.[9][10][11] In 2024, NIFTY 50 overtook Nifty Bank after the latter's weekly expiry contracts were discontinued.[12]

The NIFTY 50 index covers 13 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. As of July 2024, NIFTY 50 gives a weightage of 32.76% to financial services including banking, 13.76% to information technology, 12.12% to oil and gas, 8.46% to consumer goods, and 8.22% to automotive.[1]

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Methodology

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The NIFTY 50 index is a free float market capitalisation-weighted index.

Stocks are added to the index based on the following criteria:[1]

  1. Must have traded at an average impact cost of 0.50% or less during the last six months for 90% of the observations, for the basket size of Rs. 100 million.
  2. The company should have a listing history of 6 months.
  3. Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index.
  4. The company should have a minimum listing history of 1 month as on the cutoff date

The index was initially calculated on a full market capitalization methodology. On 26 June 2009, the computation was changed to a free-float methodology.[13] The base period for the NIFTY 50 index is 3 November 1995, which marked the completion of one year of operations of the equity market segment on NSE. The base value of the index has been set at 1000 and a base capital of ₹ 2.06 trillion.[1][14]

The index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 every year; further, average data for the previous six months from the cut-off date is considered to filter stocks. A notice of 4 weeks from the date of change is given to market participants so that they can prepare for any changes.[1]

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Constituents

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The Nifty 50 has the following constituents, as of 28 March 2025.

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Index changes

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Changes in index constituents since Nifty 50 since 2006:

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Statistics

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Record values

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High Value Record

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Major single day falls

The following table lists some of the notable single-day falls of the NIFTY 50 index.

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Major single day gains

The following table lists some of the notable single-day gains of the NIFTY 50 index.

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Annual returns

The following table shows the annual development of the NIFTY 50 since 2000.[79][80] The historical daily returns data can be accessed from the NSE website.[81]

More information Year, Closing level ...
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Derivatives

Trading in futures and options on the NIFTY 50 is offered by the NSE and NSE International Exchange (NSEIX).[82][83] NSE offers weekly as well as monthly expiry options..[84]

NSE allows international traders to trade on the NIFTY 50 by GIFT NIFTY. The same index had previously operated under the name SGX Nifty, and was traded on the Singapore Exchange. It was rebranded to GIFT Nifty on 3 July 2023 and trading was moved to the NSE International Exchange (NSEIX) situated in GIFT City, Gandhinagar.[85][8][86] The CEO of NSEIX called it a watershed moment since it was the first time India got back an international contract which had previously been exported.[86][85]

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NIFTY Next 50

NIFTY Next 50, also called NIFTY Junior, is an index of 50 companies whose free float market capitalisation comes after that of the companies in NIFTY 50. NIFTY Next 50 constituents are thus potential candidates for future inclusion in NIFTY 50.[87]

See also

Notes

  1. Asian Paints was also a constituent of Nifty 50 from 18 September 1996 to 28 October 2002
  2. Bajaj Auto was also a constituent of Nifty 50 from 22 April 1996 to 14 March 2008
  3. Dr. Reddy's Laboratories was also a constituent of Nifty 50 from 22 April 1996 to 14 May 1997 and from 26 May 1999 to 10 September 2008
  4. Grasim Industries was also a constituent of Nifty 50 from 22 April 1996 to 8 April 2010 and from 25 March 2011 to 26 May 2017
  5. Hero MotoCorp was also a constituent of Nifty 50 from 22 April 1996 to 18 September 1996
  6. Larsen & Toubro was also a constituent of Nifty 50 from 22 April 1996 to 24 May 2004
  7. Nestlé India was also a constituent of Nifty 50 from 18 September 1996 to 4 August 2003
  8. Tata Consumer Products was also a constituent of Nifty 50 from 22 April 1996 to 1 September 2006
  9. Wipro was also a constituent of Nifty 50 from 17 January 2002 to 1 April 2013
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References

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