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:
- 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.
- Stock should have a listing history of at least 6 months.
- The stock must be traded in the F&O segment.
- 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.
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 Zone||Cipla Ltd.||Hindustan Unilever Ltd.||Mahindra & Mahindra Ltd.||Tata Motors Ltd.|
|Asian Paints Limited||Coal India Ltd.||Housing Development Fin. Corp. Ltd.||Maruti Suzuki India Limited||Tata Steel Ltd.|
|Axis Bank Ltd.||Dr Reddys Laboratories Ltd.||ICICI Bank Ltd.||Nestle India Ltd.||Tech Mahindra Ltd.|
|Bajaj Auto Limited||Eicher Motors Ltd.||Indian Oil Corporation Ltd.||NTPC Limited||Titan Company Ltd.|
|Bajaj Finance Ltd.||GAIL (India) Ltd.||Indusind Bank Ltd.||Oil & Natural Gas Corporation Ltd.||UltraTech Cement Limited|
|Bajaj Finserv Ltd||Grasim Industries Ltd.||Infosys Limited||Power Grid Corporation of India Ltd||UPL Ltd.|
|Bharat Petroleum Corporation Ltd.||HCL Technologies Ltd.||ITC Ltd.||Reliance Industries Ltd.||Vedanta Ltd.|
|Bharti Airtel Ltd.||HDFC Bank Ltd.||JSW Steel Ltd||State Bank of India||Wipro Ltd.|
|Bharti Infratel Ltd.||Hero MotoCorp Ltd.||Kotak Mahindra Bank Limited||Sun Pharmaceutical Industries Ltd.||Yes Bank Ltd.|
|Britannia Industries Ltd.||Hindalco Industries Ltd||Larsen and Toubro Ltd.||Tata Consultancy Services Ltd.||Zee Entertainment Enterprises Ltd|
Top 10 weighted stocks on the Nifty
|1||HDFC Bank Ltd.||Banks||10.86%|
|2||Reliance Industries Ltd.||Petroleum Products||10.24%|
|3||Housing Development Fin. Corp. Ltd.||Finance||7.51%|
|4||ICICI Bank Ltd.||Banks||6.11%|
|6||Tata Consultancy Services Ltd.||Software||4.87%|
|7||ITC Ltd.||Consumer Non Durables||4.53%|
|8||Kotak Mahindra Bank Limited||Banks||4.30%|
|9||Larsen and Toubro Ltd.||Construction Project||3.72%|
|10||Axis Bank Ltd.||Banks||3.35%|
Nifty journey since 2009