Nifty-50

Nifty Share Price


22,378.4

  39.65  icon   (0.18%)    2-Mar-24 1:04:59 PM
Open
22,406.95
Prev. Close
22,338.75
High
22,419.55
Low
22,367.05
Mkt Cap.
18,007,945.83
Div Yield
23.06
PE
1.2

Performance


One Week (%)
0.57
One Month (%)
2.96
One Year (%)
28.01
YTD (%)
28.40

Nifty Listed Companies

icon Company Name icon CMP icon High icon Low icon Volume
Asian Paints Ltd2,849.82,862.12,836.0589,988
Britannia Industries Ltd4,922.554,998.954,902.355,987
Cipla Ltd1,482.31,4921,474.3580,914
Eicher Motors Ltd3,860.353,877.853,837.0517,701
Nestle India Ltd2,594.92,609.42,585.425,525
Grasim Industries Ltd2,245.752,268.952,24037,928
Hero MotoCorp Ltd4,581.454,5954,552.35156,722
Hindalco Industries Ltd522.85524518623,929
Hindustan Unilever Ltd2,416.22,421.42,410.0542,905
ITC Ltd412.05412.8410.1977,655
Larsen & Toubro Ltd3,655.253,6903,646.2246,957
Mahindra & Mahindra Ltd1,960.11,9781,957110,564
Reliance Industries Ltd2,982.153,000.92,976358,150
Tata Consumer Products Ltd1,207.251,2131,200149,379
Tata Motors Ltd988.35992.6981.551,783,565
Tata Steel Ltd155.25156.215121,643,047
Wipro Ltd522.85524.8522340,134
Apollo Hospitals Enterprise Ltd6,133.36,169.956,119.9533,927
Dr Reddys Laboratories Ltd6,238.96,298.956,22017,502
Titan Company Ltd3,764.13,7783,747.3551,206
State Bank of India773.3777768.91,158,960
Bharat Petroleum Corporation Ltd625.2629.95618.4312,763
Kotak Mahindra Bank Ltd1,723.71,7331,717.2179,918
UPL Ltd476.05479.25472.15206,786
Infosys Ltd1,656.31,6651,654.05292,153
Bajaj Finance Ltd6,584.356,6056,56549,760
Adani Enterprises Ltd3,333.253,348.73,321.5119,511
Sun Pharmaceuticals Industries Ltd1,550.551,5701,52495,487
JSW Steel Ltd844.95847834.4475,975
HDFC Bank Ltd1,430.751,4361,428.1895,265
Tata Consultancy Services Ltd4,107.14,129.54,090.1565,057
ICICI Bank Ltd1,084.651,089.451,080.5481,475
Power Grid Corporation of India Ltd286.85289.8286.2494,394
Maruti Suzuki India Ltd11,567.211,679.9511,530.716,113
IndusInd Bank Ltd1,5261,5381,524179,042
Axis Bank Ltd1,096.71,104.91,091.15250,465
HCL Technologies Ltd1,646.31,6631,64374,513
Oil & Natural Gas Corpn Ltd271.9272.9271.35864,693
NTPC Ltd341.75345334.3596,184
Coal India Ltd448.5450446.451,085,461
Bharti Airtel Ltd1,131.11,1351,123.55133,654
Tech Mahindra Ltd1,272.51,2821,271217,683
LTIMindtree Ltd5,294.95,314.85,27419,035
Divis Laboratories Ltd3,508.53,544.953,490.0530,856
Adani Ports & Special Economic Zone Ltd1,338.31,346.91,325386,697
HDFC Life Insurance Company Ltd592.3597591.05171,935
SBI Life Insurance Company Ltd1,546.81,569.41,535.250,098
UltraTech Cement Ltd10,106.3510,1559,9006,955
Bajaj Auto Ltd8,041.38,150.17,989.1514,968
Bajaj Finserv Ltd1,610.151,615.91,60544,273

Introduction to Nifty

What is NIFTY?

Like the Bombay Stock Exchange’s benchmark Sensex, which is a constituent of 30 well-performing, heavyweight stocks, the Nifty, or the Nifty50 is another broad-based stock market index in India. It is managed by the National Stock Exchange (NSE) through its subsidiary India Index Services and Products (IISL). The term was coined using the words ‘National’ and ‘Fifty’. This is because the index comprises the weighted average of 50 companies, as opposed to the Sensex which comprises the weighted average of 30 stocks, representing the biggest industrial sectors. In other words, the market movement in these 50 companies decides the direction in which the Nifty will move.

Incepted in 1995, the base year of the benchmark index is also the same, while its base value is set as 1,000. The constituents of the index include, among others, HDFC, ICICI Bank, Hindustan Unilever, ITC, Larsen and Toubro (L&T), Reliance Industries and State Bank of India (SBI). These are further divided into the Nifty auto index, the Nifty bank index, the Nifty IT index, and the Nifty FMCG index, among others, based on the sector the company represents.

Eligibility Criteria for NIFTY Index Listing?

The NIFTY 50 index's 50 stocks are chosen for inclusion based on a set of criteria. These are:

  • NSE Listing: The company should be listed at NSE. Additionally, a company's stock should be accessible for trading in the futures and options portion of the NSE. A company cannot be a component of NIFTY 50 if it is not listed and traded on the NSE.
  • Market Cap: Based on their free-float market capitalization, the top 50 large-cap companies are chosen. The market capitalization of a company is calculated by multiplying its stock price with the number of its outstanding shares.
  • Liquidity: The liquidity of a stock is another important consideration for inclusion in NIFTY 50. This means that equities that are a component of the NIFTY 50 index must have enough liquidity so that they can be readily bought and sold, without any significant loss in their value.
  • Reshuffling: The NIFTY 50 index's 50 firms are not set in stone. Every year, in the months of June and December, the index is rebalanced. NIFTY 50 index removes stocks that are no longer in the top 50 market capitalization list, at the time of rebalancing of the index. Stocks that have been delisted or suspended are also removed from Nifty 50.

How is the value of Nifty 50 index calculated?

The index was earlier calculated according to the market capitalization method. In 2009, this was changed to the free-float market capitalization method to stay in line with global practices.

Free-float means the total number of shares available to the public to trade. This excludes promoter holding or any holding apart from the public. Consequently, a company’s free-float market cap would be, number of shares available to public * market price of each share. So, if a company has 40lakh shares available to the public, and each share is valued at Rs100, the free-float market capitalization of the company will be:

40,00,000*100 = Rs. 40cr. However, it should be noted that the market cap of most of these companies is in ‘thousand crores’.

How can you invest in the Nifty 50?

Widely there are 4 ways to invest in the Nifty 50 index. Some people may prefer one over the other depending on the involvement they want while managing their funds. These methods are:

  • Buy the same stocks in the same proportion as in the index: This entails rebalancing your portfolio daily and recreating the weights. It's a time-consuming process, but it's worth it. Since you cannot acquire shares in fractions and the exact weight of the equities cannot be maintained as a result, that would also require a substantial cost.
  • Invest in index mutual funds: It is one of the easiest ways to invest in the index. Here the fund manager will look after your funds and you can even start with smaller amounts.
  • Invest via ETFs: ETFs are investment instruments just like Mutual funds and stocks. A major advantage for these is that they are traded on the exchanges and hence liquidity is high.
  • Invest through derivatives: Investing through derivatives like futures and options may be unconventional but it is certainly an option. Here you do not get physical delivery of shares in the index. The contract is cash settled on maturity which is 3 months. This means that the investor needs to create a fresh position every three months.

Why you should consider investing in the Index?

Index funds, such as the Nifty 50 Index Fund, are the ideal choice for long-term investing. Market swings will likely be averaged out over a 10-year investing horizon, which will result in significant rewards. Every investor aims to diversify their portfolio to lower investment risk. Nifty 50 Index funds are diverse in their investments because they track the Nifty 50 index. They have stakes in businesses operating in several sectors.

Stock indices like the Nifty 50 regularly update their constituent stocks. As a result, the fund manager of an index mutual fund buys and sells the same securities to keep track of the index. Your risk as an investor is therefore considerably reduced when you invest in an index mutual fund.

Every mutual fund typically keeps a set portion of your total investment, aside, to cover operating costs. The ratio of these costs to the value of your investment is known as the TER (Total Expense Ratio). As passive investments, index funds often have lower expense ratios than active mutual funds.

Nifty 50 FAQs

Which stock has the highest weightage in the Nifty 50 index?

Currently, Reliance Industries has the highest weightage in the Nifty 50 index.

What is the difference between Nifty and stocks?

The top 50 stocks in terms of market capitalization, out of the over 1600 stocks that are actively traded on the NSE, are represented by Nifty 50 index.

What are the factors that cause changes in the Nifty?

Stock prices are impacted by macroeconomic factors, microeconomic factors, and company specific factors. These same factors also affect the value of NIFTY 50 index.

Sensex vs Nifty?

The Bombay Stock Exchange and National Stock Exchange are the two stock exchanges in India. An index is necessary for every stock exchange in order to gauge market performance. Nifty is the index for the National Stock Exchange. Sensex is the index of the Bombay Stock Exchange.

How is the value of Nifty 50 calculated?

Free-float market capitalization-weighted method is used to determine the value of the NIFTY 50 index. The current total weighted market capitalization of the companies making up the index are indexed over their weighted market capitalization on a base day. This base day is 3rdNovember 1995. 

Top Companies that are currently part of NIFTY 50?

The top 10 companies that make up Nifty 50 are:

  1. Reliance Industries
  2. Tata Consultancy Service
  3. HDFC Bank
  4. Infosys
  5. Hindustan Unilever
  6. ICICI Bank
  7. State Bank of India
  8. HDFC
  9. ITC
  10. Bharti Airtel

How is the value of Nifty 50 calculated?

Free-float market capitalization-weighted method is used to determine the value of the NIFTY 50 index. The current total weighted market capitalization of the companies making up the index are indexed over their weighted market capitalization on a base day. This base day is 3rdNovember 1995. 

Top Companies that are currently part of NIFTY 50?

The top 10 companies that make up Nifty 50 are:

Reliance Industries

Tata Consultancy Service

HDFC Bank

Infosys

Hindustan Unilever

ICICI Bank

State Bank of India

HDFC

ITC

Bharti Airtel