What is Nifty - Meaning, Eligibility Criteria and Top Listed Companies

Gaurav Seth
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isVerifiedExpertAuthor is a Zfunds Verified Expert
Gaurav Seth

What is Nifty?

Nifty 50 or just the “Nifty” as it is popularly known, is an index comprising fifty stocks with the highest market capitalization (value of a company traded on the stock exchange). The index derived its name as a combination of the words National and Fifty. Nifty is primarily a benchmark index and was introduced in 1996. It is a well-diversified 50 companies index reflecting overall market conditions, and that is one of the reasons it is widely accepted as an index that reflects the conditions of the Indian economy.

How are stocks for Nifty50 selected?

There are certain eligibility criteria which a stock must fulfil in order to be considered for inclusion in the index. These are as follows:

  1. The stock should have traded at an average impact cost of 0.50% or less during the last 6 months for at least 90% observations, for a basket size of Rs.100 million. The impact cost is one of the best measures of liquidity as it reflects the ease of finding counter trades.
  2. Stock should have a listing history of at least 6 months.
  3. The stock must be traded in the F&O segment.
  4. Companies which come out with an IPO will be eligible for inclusion, if it fulfils the normal eligibility criteria for 3 months instead of 6.

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When is the Nifty50 list rebalanced?

The list is rebalanced on a semi-annual basis – 31st of January and 31st of July, each year. The market is given four weeks prior notice from date of change.

What are the stocks currently on the list?

Adani Ports & Special Economic ZoneCipla Ltd.Hindustan Unilever Ltd.Mahindra & Mahindra Ltd.Tata Motors Ltd.
Asian Paints LimitedCoal India Ltd.Housing Development Fin. Corp. Ltd.Maruti Suzuki India LimitedTata Steel Ltd.
Axis Bank Ltd.Dr Reddys Laboratories Ltd.ICICI Bank Ltd.Nestle India Ltd.Tech Mahindra Ltd.
Bajaj Auto LimitedEicher Motors Ltd.Indian Oil Corporation Ltd.NTPC LimitedTitan Company Ltd.
Bajaj Finance Ltd.GAIL (India) Ltd.Indusind Bank Ltd.Oil & Natural Gas Corporation Ltd.UltraTech Cement Limited
Bajaj Finserv LtdGrasim Industries Ltd.Infosys LimitedPower Grid Corporation of India LtdUPL Ltd.
Bharat Petroleum Corporation Ltd.HCL Technologies Ltd.ITC Ltd.Reliance Industries Ltd.Vedanta Ltd.
Bharti Airtel Ltd.HDFC Bank Ltd.JSW Steel LtdState Bank of IndiaWipro Ltd.
Bharti Infratel Ltd.Hero MotoCorp Ltd.Kotak Mahindra Bank LimitedSun Pharmaceutical Industries Ltd.Yes Bank Ltd.
Britannia Industries Ltd.Hindalco Industries LtdLarsen and Toubro Ltd.Tata Consultancy Services Ltd.Zee Entertainment Enterprises Ltd


Top 10 weighted stocks on the Nifty

Sr.No.Company NameSectorWeightage
1HDFC Bank Ltd.Banks10.86%
2Reliance Industries Ltd.Petroleum Products10.24%
3Housing Development Fin. Corp. Ltd.Finance7.51%
4ICICI Bank Ltd.Banks6.11%
5Infosys LimitedSoftware5.13%
6Tata Consultancy Services Ltd.Software4.87%
7ITC Ltd.Consumer Non Durables4.53%
8Kotak Mahindra Bank LimitedBanks4.30%
9Larsen and Toubro Ltd.Construction Project3.72%
10Axis Bank Ltd.Banks3.35%

Nifty journey since 2009

Nifty 10 year return India for Index funds


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