Nifty50 Stocks list | Index | Share price
Nifty50 Stocks list, Index, Share price
What is Nifty 50?
Investors always track the Nifty50 share price on the spot or future. What is Nifty 50? it is a stock market index of the National Stock Exchange which was introduced on 21st April 1996. The full form of Nifty50 is a combination of National and Fifty. Nifty50 consists of the 50 most popular, most consistent earnings growth and high P/E ratio large-cap stocks for 13 sectors of the economy.
Now before we know more about Nifty50 we should be aware of the National Stock Exchange (NSE) first. The National Stock Exchange of India Ltd (NSE) was incorporated in 1992. The exchange started its trading with the wholesale debt market and cash market in 1994. It is one of the technology-driven most sophisticated Exchange which ranked fourth in the world by equity trading volume in 2015.
Nifty50 is owned and managed by India Index Services and Products (IISL), a wholly-owned subsidiary of the NSE Strategic Investment Corporation Ltd. Nifty50 is used for benchmarking fund portfolios, derivative index, index funds. It is one of the most active benchmark indices in the world.
The common man assumes that if Nifty50 is down, it means the whole stock market is down. Similarly, if Nifty50 is up then all stocks in the market are up. No matter if any stock in the Nifty50 list was down or touched a lower circuit. Common people always look after the Nifty50 benchmark to judge the market.
The base year for Nifty50 calculation is taken as 1995 and the base value is set to be 1000.
How Nifty50 Index calculated
The Nifty50 index was initially calculated on the Full Market Capitalisation Method, since June 26, 2009, it is computed using Free Float Market Capitalisation Method. As of March 29, 2019, the Nifty50 Index represents about 66.8% of the free-float market capitalization of the stock listed on the National Stock exchange.
Market Capitalisation= Shares outstanding*Price
Free Float Market Capitalisation= Shares outstanding*Price*IWF (investable weight factor)
Index Value= Current Market Value/Base Market Capital* Base Index Value (1000)
The National Stock Exchange of India (NSE) introduced Nifty50 derivative trading on 12th June 2000. Similarly, the Nifty50 index option was started on 4th June 2001.
Eligibility Criteria for selection of Nifty50 stocks
The eligibility criteria for the selection of Nifty50 company stocks as per the National Stock Exchange (NSE) are
- The first eligibility criteria are the company must be domiciled in India and must be listed in the National Stock Exchange (NSE)
- The company should be listed for more than 6 months
- The company which are available in Nifty100 index and are available for F&O segment are eligible for inclusion in Nifty50 index
- The best way to measure the liquidity of a stock is through market impact cost. It reflects accurately the cost when actually trading an index. To qualify into Nifty50 Index, the stock should have traded at an average impact cost of 0.50% or less during the last 6 months for 90% of the observation for a portfolio of Rs100 million.
- A newly listed company will be eligible for inclusion in the Nifty50 index if it fulfills the normal eligibility criteria for the index for a 3 months period instead of 6 months.
List of Nifty50 Stocks and their Weightage ( As of 1st April 2021)
| Sr.No. | Company Name | Sector | Weightage |
| 1 | HDFC Bank Ltd. | Banks | 10.24% |
| 2 | Reliance | Petroleum Products | 10.19% |
| 3 | HDFC | Finance | 7.08% |
| 4 | Infosys Limited | Software | 7.98% |
| 5 | ICICI Bank Ltd. | Banks | 6.34% |
| 6 | ITC Ltd. | Consumer Non-Durables | 3.01% |
| 7 | TCS | Software | 5.18% |
| 8 | Kotak Mahindra Bank Limited | Banks | 4.05% |
| 9 | L&T | Construction Project | 2.70% |
| 10 | Axis Bank Ltd. | Banks | 2.76% |
| 11 | SBI | Banks | 2.20% |
| 12 | HUL | Consumer Non-Durables | 3.42% |
| 13 | Bajaj Finance Ltd. | Finance | 2.15% |
| 14 | Indusind Bank Ltd. | Banks | 0.85% |
| 15 | Maruti Suzuki India Limited | Auto | 1.44% |
| 16 | Asian Paints Limited | Consumer Non-Durables | 1.80% |
| 17 | Bharti Airtel Ltd. | Telecom – Services | 1.97% |
| 18 | HCL Technologies Ltd. | Software | 1.68% |
| 19 | NTPC Limited | Power | 0.80% |
| 20 | Mahindra & Mahindra Ltd. | Auto | 1.20% |
| 21 | Power Grid Corporation | Power | 0.87% |
| 22 | Sun Pharmaceutical | Pharmaceuticals | 1.02% |
| 23 | UltraTech Cement Limited | Cement | 1.22% |
| 24 | ONGC | Oil | 0.59% |
| 25 | Titan Company Ltd. | Consumer Durables | 1.02% |
| 26 | Bajaj Finserv Ltd | Finance | 0.92% |
| 27 | Wipro Ltd. | Software | 0.96% |
| 28 | Tech Mahindra Ltd. | Software | 0.97% |
| 29 | Coal India Ltd. | Minerals/Mining | 0.43% |
| 30 | Indian Oil Corporation Ltd. | Petroleum Products | 0.37% |
| 31 | Bajaj Auto Limited | Auto | 0.75% |
| 32 | Tata Steel Ltd. | Ferrous Metals | 0.96% |
| 33 | UPL Ltd. | Pesticides | 0.56% |
| 34 | Dr Reddys Laboratories Ltd. | Pharmaceuticals | 0.86% |
| 35 | Grasim Industries Ltd. | Cement | 0.87% |
| 36 | Britannia Industries | Consumer Non-Durables | 0.67% |
| 37 | Hero MotoCorp Ltd. | Auto | 0.60% |
| 38 | Adani Ports | Transportation | 0.81% |
| 39 | Divis Lab | Pharma | 0.73% |
| 40 | BPCL | Petroleum Products | 0.63% |
| 41 | Hindalco | Non – Ferrous Metals | 0.75% |
| 42 | Cipla | Pharmaceuticals | 0.65% |
| 43 | Tata Motors | Auto | 0.85% |
| 44 | HDFC Life | Insurance | 0.91% |
| 45 | JSW Steel | Ferrous Metals | 0.71% |
| 46 | Eicher Motors | Auto | 0.57% |
| 47 | SBI Life | Insurence | 0.54% |
| 48 | Nestle | Food Processing | 0.96% |
| 49 | Shree Cement | Cement | 0.62% |
| 50 | Tata Consumer Products | Tea & Coffee | 0.42% |
What is SGX Nifty, how it is different from Nifty 50
SGX Nifty stands for Singapore Stock Exchange Nifty. It’s a derivative of the Nifty index officially traded in the Singapore Stock Exchange. The Indian market trading hours are only 6.30 hrs whereas, in Singapore, SGX Nifty trades 16 hours, from 6.30 am to 11.30 pm IST. Investors from across the globe who are not able to trade in Nifty in the Indian stock market due to short duration trading hours can trade in SGX Nifty.
SGX Nifty opens at 6.30 am along with Asia’s other stock market so it gives us the initial direction of the Indian Market. Due to the longest trading hours, SGX Nifty is much more volatile than NSE Nifty. Global professional investors or traders make positions on SGX Nifty for their hedging purpose.
What is the Nifty50 share price?
We all are clear about what is Nifty50, calculations of Nifty50 index value, Nifty50 list of stocks, and its criteria of selection in the index. Now we will know how we can trade at the Nifty50 share price.
As we know, a derivative contract is a price that derives its value from an underlying asset.
Similarly in Nifty50 futures also the underlying is the Index itself i.e Nifty50 Index on spot level. Hence the Nifty Future contracts derive their value or price from the Nifty Index spot level. It means if the Nifty Index spot price goes up or comes down then the Nifty50 future prices will also move accordingly.
The Nifty50 futures is known as the most popular and liquid futures contract instrument in India. The size of Nifty50 future at present is 75. Nifty50 contracts are available with three different expiry options (Current, Mid, and Far months).
Benefits of Nifty50 Index trading
There are many investors and traders who are comfortable doing trading in the Nifty50 index in futures rather than trading in stocks. Let’s find out what the benefits of index trading over stock trading.
- Risk Diversified: Nifty50 Index consists of 50 stocks in various sectors. Buying a lot of Nifty future means the risk of investment diversified among all sectors and all 50 stocks. If one sector or one stock is not performing then it does not affect the whole lot of Nifty.
- No scope of Manipulation: The share price of the Nifty50 index moves as per the collective movement of 50 stocks in Nifty. So there is no scope of manipulation of the Nifty50 index.
- Liquidity: Nifty50 index is the most liquid counter in the Indian stock market. Traders/investors can easily get any quantity with minimum slippages in the Nifty50 Index for trading.
- Minimum Margin required: For trading in individual stocks one has to keep a 20-25% margin whereas in Nifty50 Index trading only 3-5% margin required.
- Less Volatile compare to stocks: Stocks are more volatile than the Nifty50 index. Stocks are seen with 20-25% movement in a single day whereas the major fall in the Nifty50 index was seen in 2008 is 10% and the major single-day high was seen at 3.69% only.
- Fundamental Analysis not required like stocks: For trading in stocks one needs to study both the Fundamental and Technical Analysis. Whereas for trading in the Nifty50 index one can easily analyze by studying technical analysis and economic activities.
Conclusion:
We have learned what is Nifty50, how it is calculated, a list of nifty50 stocks, its weightage, Nifty50 index trading benefits, and all. It is also very clear that if we want to track the Indian stock market then we need to follow Nifty50 Index.
To trade in the Indian stock market It is always better to do trading in Nifty50 stocks. The reason being these are A group stocks where you need not study much about their fundamentals. Of course, you just need to update about the news on these stocks on time to time basis.
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