Nifty 50 Index: List of Nifty 50 Stocks, Weightage & Calculation

Last Updated on Aug 19, 2024 by Anjali Chourasiya

If you’ve ever been curious about the jargon of the stock market, you’ve likely come across the term “Nifty 50.” But what does it mean? Nifty 50 is a benchmark index comprising 50 companies out of over 2000 listed on the National Stock Exchange (NSE). But what are these companies, and how does the NSE sort this list? In this article, let’s explore the list of Nifty 50 stocks, their weightage, calculation, statistics, and more. 

What is Nifty 50?

Nifty 50 is a benchmark index of the Indian stock market. It represents the weighted average of the top 50 large-cap, most liquid stocks listed on the National Stock Exchange. As called Nifty, the index is used to benchmark fund portfolios, index funds, and index-based derivatives.

The listed stocks in the index stretch across 13 economic areas, such as financial services, healthcare, construction, and more (Find the list below). 

Although the index has only 50 of the 2,113 companies listed on the NSE, it captures 66% of its float-adjusted market capitalisation. Therefore, the Nifty 50 is regarded as a true reflection of the Indian stock market.

Nifty also has various sub-indices based on different asset classes, sectors, or segments. Nifty IT, Nifty Next 50, Nifty Bank, and Nifty small-cap are some of the Nifty indices.

Features and Facts of the Nifty 50 Index

• Nifty is owned and managed by India Index Services and Products (IISL).
• The base year is 1995, and the base value is 1,000.
• Nifty is a composition of 50 large-cap stocks actively trading on the NSE.
• The companies in Nifty 50 are selected based on the free-float market capitalisation.
• Nifty 50 companies belong to different sectors.

Nifty 50 Sector Weightage – 2024

Nifty 50 is a free-float market capitalisation index. The sector weightage in the index keeps changing based on the performance of constituent stocks.

Nifty 50 Stocks List – Updated August 2024

The top Nifty 50 companies in India are mentioned below.

Note: The data is of 16th August 2024. The list of Nifty 50 stocks is derived from Tickertape Stock Screener using the Nifty 50 filter under Stock Universe.

How To Find Nifty 50 Stocks Using Tickertape?

Getting the Nifty 50 stocks list using Tickertape is a two-step process:

Step 1: Launch Tickertape Stock Screener

Step 2: On the left-hand side, select ‘Nifty 50’ in the Stock Universe

HoHow Is Nifty 50 Calculated?

The Nifty 50 index is constructed using the free-float market-capitalisation-weighted method. It represents the market value of all the stocks in the index in comparison to a standard period value.

The value of a company’s shareholdings is referred to as its market capitalisation or market cap. The total market value of those shares that are accessible for public trade is called the free-float market cap.

Using this technique, each stock in the index is allocated a weight based on the total value of the outstanding shares.

Each stock’s market cap is calculated by multiplying it by a float factor or Investible Weight Factor (IWF). It solely takes into account shares that are accessible for public trade.

Market capitalisation = Shares outstanding * Current Price

Free-float Market Capitalisation = Market Cap * IWF

Index Value = (Current market value/Base market capital) * 1000

Here, the current market value is the weighted total market capitalisation of all 50 firms. The weighted aggregate market capitalisation of all 50 firms in the base period is the base market capital.

How To Invest in Nifty 50 Stocks?

There are two common ways of investing in Nifty 50 stocks as follows:

1. Buy individual stocks: The first way to invest in the Nifty 50 index is to buy individual stocks. One of the ways to do this is to buy them through Tickertape. Simply screen Nifty 50 stocks on the Tickertape Stock Screener, evaluate them using the individual Stock Page and add them to the Basket. You can then execute multiple stock orders via the Transactions feature.
2. Buy index mutual fund units: If you do not wish to invest in stocks directly, you can buy Nifty 50 stocks via index mutual funds that invest in the constituent stocks. You can invest in an index fund via a lump sum or a Systematic Investment Plan (SIP).

Eligibility Criteria for Stocks To Be Included in the Nifty 50 Index

1. Market Impact Cost: One of the most critical measures of a stock’s liquidity is the market impact cost. This metric reflects the cost of executing a transaction in relation to the stock’s market price. To be eligible for inclusion in the Nifty 50, a stock must have an average impact cost of 0.50% or less during the last six months for 90% of the observations, based on a hypothetical trade size of ₹100 million. This ensures that the stocks in the index are liquid enough to handle large transactions without significantly affecting their price.
2. Listing on NSE: The company must be registered and listed on the National Stock Exchange (NSE).
3. Listing History: Generally, a stock must have a listing history of at least 6 months to qualify for the Nifty 50 index. However, if a company has recently undergone an Initial Public Offering (IPO), it can be considered for inclusion after just 3 months, provided it meets all other eligibility criteria. This shortened period applies only to IPOs, with other listing options requiring a 6-month history. Additionally, per the updated criteria, a minimum listing history of just one month is required for consideration as of the cutoff date.
4. Eligibility for Derivatives (Futures and Options) Trading: Only companies whose stocks are allowed to trade in the derivatives market, specifically in futures and options (F&O), are eligible for inclusion in the Nifty 50. This criterion ensures that the stocks are liquid and actively traded in the broader financial market.
5. Differential Voting Rights (DVR): The stock should have differential voting rights (DVR), which would allow certain shareholders more voting power.

Index Rebalancing of Nifty 50

The Nifty 50 index undergoes a semi-annual rebalancing process to ensure it accurately reflects the market. The index is reviewed twice yearly, with January 31 and July 31 cutoff dates. During these reviews, stocks may be added or removed based on their performance and compliance with the eligibility criteria. The average data over the six months leading up to the cutoff date is considered for these reviews. The market is given a four-week notice before any changes take effect, allowing for a smooth transition. This regular rebalancing helps maintain the index’s relevance and alignment with the market.

Performance Statistics and Key Metrics of the Nifty 50 Index

Index Returns (%)

The Nifty 50 index has demonstrated consistent performance across various timeframes:

• Price Return: The index’s price return was 26.31% in the previous year, 17.55% for the last five years, and 11.83% since inception. These numbers expose the compound growth in stock prices in this index over time.
• Total Return: Total return, with dividends, stands at 27.84% for the last year, 18.92% over five years, and 18.48% since inception. This is a telltale sign that dividends have been a big factor in the index’s overall returns.
• Net Total Return: After income tax effect on dividends, Net Total Return is 27.30% over the last year, 18.48% over the last five years, and 18.48% since inception. The close alignment with Total Return indicates little erosion from income tax on dividends over time.

Volatility and Risk Metrics

The Nifty 50 index’s volatility and how it aligns with the market are highlighted through the following metrics:

• Standard Deviation: The index’s standard deviation has been 12.73% over the past year, 19.22% over the last five years, and 22.94% since its inception. These figures show how much the index’s returns have varied, with higher values pointing to greater volatility.
• Beta (NIFTY 50): The index has a beta of 1.00 across all periods, indicating that it moves perfectly with the broader market, represented by the Nifty 50 itself. This means the index carries the same level of market risk.
• Correlation (NIFTY 50): A correlation coefficient of 1.00 with the Nifty 50 index indicates a perfect linear relationship, meaning the index’s movements align completely with the broader market.

Fundamental Ratios

These valuation metrics offer a glimpse into the Nifty 50 index’s current market position:

• P/E Ratio (Price-to-Earnings Ratio): With a P/E ratio of 23.4, investors effectively pay ₹23.40 for every ₹1 of earnings generated by the companies within the index. This ratio signals the market’s expectations for future earnings growth.
• P/B Ratio (Price-to-Book Ratio): A P/B ratio of 4.21 indicates that the index is over four times its book value, reflecting a higher market valuation of the companies’ net assets.
• Dividend Yield: The Dividend Yield stands at 1.19%, representing the annual dividend income as a percentage of the index’s price. This yield might appeal to those interested in the index’s income potential.

To Wrap Up

In conclusion, understanding the Nifty 50 index is crucial for investors looking to navigate the Indian stock market. With its rich history, diverse constituent stocks, and sector-wise distribution, Nifty 50 plays a pivotal role in shaping investment strategies. By understanding Nifty 50 and gaining insights into its intricacies, investors can unlock new opportunities and make informed decisions to thrive in the dynamic world of stock market investing. For this purpose, Tickertape is your perfect solution. Track Nifty 50 stocks with just one click. So, dive in, explore, and for all your investment needs, #TickertapeHaiNa!

Frequently Asked Questions (FAQs) About Nifty 50 Index

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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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