Open main menu

The NIFTY 50 index is National Stock Exchange of India's benchmark broad based stock market index for the Indian equity market. Full form of NIFTY is National Stock Exchange Fifty. It represents the weighted average of 50 Indian company stocks in 13[1] sectors and is one of the two main stock indices used in India, the other being the BSE Sensex.[2]

NIFTY 50 Index
OperatorIndia Index Services and Products
ExchangesNational Stock Exchange of India
Constituents50
TypeLarge cap
Market capUS$2.27 trillion (April 2018)
Weighting methodCapitalization-weighted
Websitewww.nseindia.com

Nifty is owned and managed by India Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited. IISL had a marketing and licensing agreement with Standard & Poor's for co-branding equity indices until 2013. The Nifty 50 was launched 1 April 1996, and is one of the many stock indices of Nifty.

NIFTY 50 Index has shaped up as a largest single financial product in India, with an ecosystem comprising: exchange-traded funds (onshore and offshore), exchange-traded options at the NSE in India[3], and futures and options abroad at the SGX.[4] NIFTY 50 is the world's most actively traded contract. WFE, IOMA and FIA surveys endorse NSE's leadership position.[5]

The NIFTY 50 covers 12 sectors (as of 7 October 2017) of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. During 2008-12, NIFTY 50 50 Index share of NSE market capitalisation fell from 65% to 29%[6] due to the rise of sectoral indices like NIFTY Bank, NIFTY IT, NIFTY Pharma, NIFTY SERV SECTOR, NIFTY Next 50, etc. The NIFTY 50 Index gives 29.70% weightage to financial services, 0.73% weightage to industrial manufacturing and nil weightage to agricultural sector.[7]

The NIFTY 50 index is a free float market capitalisation weighted index. The index was initially calculated on full market capitalisation methodology. From 26 June 2009, the computation was changed to free float methodology. The base period for the CNX Nifty index is 3 November 1995, which marked the completion of one year of operations of National Stock Exchange Equity Market Segment. The base value of the index has been set at 1000 and a base capital of Rs 2.06 trillion.[8][9] In February 2019, Britannia Industries entered into Nifty 50 by replacing Hindustan Petroleum Corporation Ltd. HPCL moves to Nifty Next 50.

Contents

ComponentsEdit

List of 50 companies that form part of NIFTY 50 Index as in 30 March 2019:

Company Name Symbol Sector
Asian Paints Ltd ASIANPAINT.NS Consumer Goods
Axis Bank AXISBANK.NS Banking
Bajaj Auto BAJAJ-AUTO.NS Automobile
Bajaj Finance BAJFINANCE.NS Financial Services
Bajaj Finserv BAJAJFINSV.NS Financial Services
Bharti Airtel BHARTIARTL.NS Telecommunication
Bharti Infratel Ltd. INFRATEL.NS Telecommunication
BPCL BPCL.NS Energy - Oil & Gas
Cipla CIPLA.NS Pharmaceuticals
Coal India COALINDIA.NS Metals
Dr Reddy Lab DRREDDY.NS Pharmaceuticals
Eicher Motors EICHERMOT.NS Automobile
GAIL GAIL.NS Energy - Oil & Gas
Grasim Industries GRASIM.NS Cement
HCL Technologies HCLTECH.NS Information Technology
HDFC HDFC.NS Financial Services
HDFC Bank HDFCBANK.NS Banking
Hero MotoCorp HEROMOTOCO.NS Automobile
Hindalco Industries HINDALCO.NS Metals
Hindustan Unilever HINDUNILVR.NcbbS Consumer Goods
Britannia Industries BRITANNIA.NS Consumer Goods
ICICI Bank ICICIBANK.NS Banking
Indiabulls Housing Finance IBULHSGFIN.NS Financial Services
IndusInd Bank INDUSINDBK.NS Banking
Infosys INFY.NS Information Technology
IOC IOC.NS Energy - Oil & Gas
ITC Limited ITC.NS Consumer Goods
JSW Steel JSWSTEEL.NS Metals
Kotak Mahindra Bank KOTAKBANK.NS Banking
Larsen & Toubro LT.NS Construction
Mahindra & Mahindra M&M.NS Automobile
Maruti Suzuki MARUTI.NS Automobile
NTPC Limited NTPC.NS Energy - Power
ONGC ONGC.NS Energy - Oil & Gas
PowerGrid Corporation of India POWERGRID.NS Energy - Power
Reliance Industries RELIANCE.NS Energy - Oil & Gas
State Bank of India SBIN.NS Banking
Sun Pharmaceutical SUNPHARMA.NS Pharmaceuticals
Tata Consultancy Services TCS.NS Information Technology
Tata Motors TATAMOTORS.NS Automobile
Tata Steel TATASTEEL.NS Metals
Tech Mahindra TECHM.NS Information Technology
Titan Company TITAN.NS Consumer Goods
UltraTech Cement ULTRACEMCO.NS Cement
United Phosphorus Limited UPL.NS Chemicals
Vedanta VEDL.NS Metals
Wipro WIPRO.NS Information Technology
Yes Bank YESBANK.NS Banking
Zee Entertainment Enterprises ZEEL.NS Media & Entertainment

Major single day fallsEdit

Following are some of the notable single-day falls of the NIFTY 50 Index -

Sl. No. Date Fall Reason
1 28 October 1997 8% Investors deserted emerging Asian shares during the Asian Financial Crisis. Crashes also occurred in Thailand, Indonesia, South Korea, Philippines,
2 21 January 2008 10% Due to the US Subprime Mortgage Crisis.
3 16 August 2013 4.08% (234.45 Points) Due to depreciation of the Indian Rupee[10][11].
4 24 August 2015 5.92% (490.95 Points) Driven by the meltdown in the Chinese Stock market[12].
5 24 June 2016 181.5 Points Driven by the Brexit Referendum[13].
6 11 November 2016 229.45 Points Driven by the Demonetization move by the Indian Government and the 2016 US Election Results[14].
7 2 February 2018 256.30 Points Driven by the 2018 Union budget of India and Global breakdown.
8 24 September 2018 175.55 Points Panic Fall, wherein in the last trading session (21 September 2018) there were rumors of Fraud by Housing Loan companies
9 4 October 2018 303.20 Points Panic Fall, due to Oil price Increase and rupee fall against US Dollar.
10 5 October 2018 282.80 Points Panic Fall, due to Oil price Increase and rupee fall against US Dollar.
11 5 July 2019 1.12% (132.80 Points) Due to Union Budget FY 2019.
12 8 July 2019 2.14% (252.55 Points) Due to Union Budget FY 2019. (Downfall Continues)

Major single day highsEdit

Following are some of the notable single-day highs of the NIFTY 50 Index -

Sl. No. Date High Reason
1 20 May 2019 3.69 % (421.10 points) Exit Polls of 2019 General elections Predict Majority for BJP government.
2 23 May 2019 2.49 % (300.90 points) Results of the 2019 General Elections in which BJP led NDA alliance wins.
3 08 Aug 2019 1.63% (176.95 points) FPI surcharge rollback

All time highsEdit

  • All time Intraday high was 12,103.05 on 3 June 2019.
  • All Time Closing High was 12,088.55 on 3 June 2019.

DerivativesEdit

Trading in call and put options on the Nifty 50 are offered by the NSE.[15]

NIFTY Next 50Edit

NIFTY Next 50, also called NIFTY Junior, is an index of 50 companies whose free float market capitalization comes after that of the companies in NIFTY 50. NIFTY Next 50 constituents are thus potential candidates for future inclusion in NIFTY 50.[16]

Components
Company Name Symbol Sector
ABB ABB Industrial Manufacturing
ACC ACC Cement
Aditya Birla Capital ABCAPITAL Financial Services
Ambuja Cements AMBUJACEM Cement
Ashok Leyland ASHOKLEY Automobile
Aurobindo Pharma AUROPHARMA Pharmaceuticals
Avenue Supermarts DMART Consumer Goods
Bandhan Bank BANDHANBNK Banking
Bank of Baroda BANKBARODA Banking
BEL BEL Industrial Manufacturing
BHEL BHEL Industrial Manufacturing
Biocon BIOCON Pharmaceuticals
Bosch BOSCHLTD Automobile
Hindustan Petroleum HINDPETRO Energy - Oil & Gas
Cadila Healthcare CADILAHC Pharmaceuticals
Colgate-Palmolive COLPAL Consumer Goods
Container Corporation of India CONCOR Services - Transport & Logistics
Dabur DABUR Consumer Goods
DLF DLF Construction
General Insurance Corporation of India GICRE Financial Services
Godrej Consumer Products Limited GODREJCP Consumer Goods
Havells HAVELLS Consumer Goods
HDFC Standard Life Insurance HDFCLIFE Financial Services
Hindustan Zinc HINDZINC Metals
ICICI Lombard General Insurance ICICIGI Financial Services
ICICI Prudential Life Insurance ICICIPRULI Financial Services
Idea Cellular IDEA Telecommunication
Interglobe Aviation INDIGO Services - Transport & Logistics
L&T Finance L&TFH Financial Services
LIC Housing Finance LICHSGFIN Financial Services
Lupin Limited LUPIN Pharmaceuticals
Marico MARICO Consumer Goods
Motherson Sumi Systems MOTHERSUMI Automobile
MRF MRF Automobile
New India Assurance NIACL Financial Services
NHPC Limited NHPC Energy - Power
NMDC NMDC Metals
Oil India OIL Energy - Oil & Gas
Oracle Financial Services Software OFSS Information Technology
Petronet LNG PETRONET Energy - Oil & Gas
Pidilite Industries PIDILITIND Chemicals
Piramal Enterprises PEL Pharmaceuticals
Procter & Gamble PGHH Consumer Goods
SAIL SAIL Metals
SBI Life Insurance Company SBILIFE Financial Services
Shree Cement SHREECEM Cement
Shriram Transport Finance SRTRANSFIN Financial Services
Siemens SIEMENS Industrial Manufacturing
Sun TV Network SUNTV Media & Entertainment
United Spirits MCDOWELL-N Consumer Goods

See alsoEdit

ReferencesEdit

  1. ^ "NSE India- Nifty 50 Fact Sheet" (PDF). NSE India.
  2. ^ "Broadmarket indices - NIFTY 50 Index". nseindia.com. NSE - National stock exchange (official website). Retrieved 29 November 2017.
  3. ^ "NSE Equity Derivatives Contract Specifications". National Stock Exchange of India. Retrieved 16 August 2019.
  4. ^ "SGX Derivatives Products Nifty Indices Futures and Options Product Information". Singapore Exchange Ltd. Retrieved 16 August 2019.
  5. ^ https://www.nseindia.com/content/press/PR_cc_12052016.pdf
  6. ^ NIFTY 50 loses importance to sectoral indices
  7. ^ "Sectoral weightage of CNX Nifty 50 Index" (PDF).
  8. ^ "CNX Nifty Index Methodology" (PDF).
  9. ^ "NSE - National Stock Exchange of India Ltd". www.nseindia.com.
  10. ^ "News18.com: CNN-News18 Breaking News India, Latest News, Current News Headlines". News18. Retrieved 21 December 2017.
  11. ^ "Sensex, Nifty reel as Brexit spooks world markets". Hindu BusinessLine. Retrieved 9 July 2019.
  12. ^ "Global mayhem: Sensex crashes 1624 pts; Nifty breaches 7900". Moneycontrol. Retrieved 21 December 2017.
  13. ^ Bureau/Agencies, Our (24 June 2016). "Sensex, Nifty reel as Brexit spooks world markets". The Hindu Business Line. Retrieved 21 December 2017.
  14. ^ Nathan, Narendra (14 November 2016). "How demonetisation and Donald Trump's victory impact your investments". The Economic Times. Retrieved 21 December 2017.
  15. ^ https://www.nseindia.com/products/content/derivatives/equities/contract_specifitns.htm
  16. ^ [1]

External linksEdit