NIFTY 50
Foundation | 22 April 1996 |
---|---|
Operator | NSE Indices |
Exchanges | National Stock Exchange of India |
Trading symbol | ^NSEI |
Constituents | 50 |
Type | Large cap |
Weighting method | Free-float capitalization-weighted |
Related indices | NIFTY Next 50 NIFTY 500 |
Website | www |
The NIFTY 50 is an Indian stock market index that represents the float-weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.[1][2] Nifty 50 is owned and managed by NSE Indices, which is a wholly owned subsidiary of the National Stock Exchange of India.[3][4] The Nifty 50 index was launched on 22 April 1996 with a base date of 3 November 1995 and with 1000 as its base value.[1][5][6]
The NIFTY 50 index ecosystem consists of index funds (both onshore and offshore mutual funds and ETFs), and futures and options at NSE and NSE International Exchange (through GIFT Nifty).[7][8] In 2016, NIFTY 50 was reported by the WFE and FIA as the world's most actively traded index options contract, but it was later overtaken by Nifty Bank.[9][10][11] But after NIFTY Bank weekly expiries were removed,[12] NIFTY 50 became the world's most actively traded options contract.[13]
The NIFTY 50 index covers 13 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. As of July 2024, NIFTY 50 gives a weightage of 32.76% to financial services including banking, 13.76% to information technology, 12.12% to oil and gas, 8.46% to consumer goods, and 8.22% to automotive.[1]
Total assets under management of passive funds (ETFs and index funds) in India tracking Nifty indices reached Rs 7.8 lakh crores, accounting for 73% of equity and debt passive funds’ AUM of Rs 10.7 lakh crores in India as of September 30, 2024. There are 343 passive products tracking Nifty index in India as of September 30, 2024. There are 30 ETFs and index funds and 2 ETNs tracking Nifty indices in international markets with a total AUM of ~US $5 billion as of September 30, 2024.[14][6]
Methodology
[edit]The NIFTY 50 index is a free float market capitalisation-weighted index.
Stocks are added to the index based on the following criteria:[1]
- Must have traded at an average impact cost of 0.50% or less during the last six months for 90% of the observations, for the basket size of Rs. 100 Million.
- The company should have a listing history of 6 months.
- Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index.
- The company should have a minimum listing history of 1 month as on the cutoff date
The index was initially calculated on a full market capitalization methodology. On 26 June 2009, the computation was changed to a free-float methodology.[15] The base period for the NIFTY 50 index is 3 November 1995, which marked the completion of one year of operations of the equity market segment on NSE. The base value of the index has been set at 1000 and a base capital of ₹ 2.06 trillion.[1][16]
The index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 every year and average data for the previous six months from the cut-off date is considered to filter stocks. A notice of 4 weeks from the date of change is given to market participants so that they can prepare for any changes.[1]
Constituents
[edit]The Nifty 50 has the following constituents, as of 30 September 2024 (largest ten by weight in bold).
Company name | Symbol | Sector[17] | Date added[18] |
---|---|---|---|
Adani Enterprises | ADANIENT | Metals & Mining | 30 September 2022 |
Adani Ports & SEZ | ADANIPORTS | Services | 28 September 2015 |
Apollo Hospitals | APOLLOHOSP | Healthcare | 31 March 2022 |
Asian Paints | ASIANPAINT | Consumer Durables | 27 April 2012[a] |
Axis Bank | AXISBANK | Financial Services | 27 March 2009 |
Bajaj Auto | BAJAJ-AUTO | Automobile and Auto Components | 1 October 2010[b] |
Bajaj Finance | BAJFINANCE | Financial Services | 29 September 2017 |
Bajaj Finserv | BAJAJFINSV | Financial Services | 2 April 2018 |
Bharat Electronics | BEL | Capital Goods | 30 September 2024 |
Bharat Petroleum | BPCL | Oil, Gas & Consumable Fuels | 28 October 2002[c] |
Bharti Airtel | BHARTIARTL | Telecommunication | 1 March 2004 |
Britannia Industries | BRITANNIA | Fast Moving Consumer Goods | 29 March 2019[d] |
Cipla | CIPLA | Healthcare | 7 October 1998 |
Coal India | COALINDIA | Oil, Gas & Consumable Fuels | 10 October 2011 |
Dr. Reddy's Laboratories | DRREDDY | Healthcare | 1 October 2010[e] |
Eicher Motors | EICHERMOT | Automobile and Auto Components | 1 April 2016 |
Grasim Industries | GRASIM | Construction Materials | 2 April 2018[f] |
HCLTech | HCLTECH | Information Technology | 28 October 2002 |
HDFC Bank | HDFCBANK | Financial Services | 22 April 1996 |
HDFC Life | HDFCLIFE | Financial Services | 31 July 2020 |
Hero MotoCorp | HEROMOTOCO | Automobile and Auto Components | 7 October 1998[g] |
Hindalco Industries | HINDALCO | Metals & Mining | 22 April 1996 |
Hindustan Unilever | HINDUNILVR | Fast Moving Consumer Goods | 22 April 1996 |
ICICI Bank | ICICIBANK | Financial Services | 25 January 2002 |
IndusInd Bank | INDUSINDBK | Financial Services | 1 April 2013 |
Infosys | INFY | Information Technology | 7 October 1998 |
ITC | ITC | Fast Moving Consumer Goods | 22 April 1996 |
JSW Steel | JSWSTEEL | Metals & Mining | 28 September 2018 |
Kotak Mahindra Bank | KOTAKBANK | Financial Services | 8 April 2010 |
Larsen & Toubro | LT | Construction | 10 December 2004[h] |
Mahindra & Mahindra | M&M | Automobile and Auto Components | 18 September 1996 |
Maruti Suzuki | MARUTI | Automobile and Auto Components | 1 March 2004 |
Nestlé India | NESTLEIND | Fast Moving Consumer Goods | 27 September 2019[i] |
NTPC | NTPC | Power | 24 September 2007 |
Oil and Natural Gas Corporation | ONGC | Oil, Gas & Consumable Fuels | 12 April 2004 |
Power Grid | POWERGRID | Power | 14 March 2008 |
Reliance Industries | RELIANCE | Oil, Gas & Consumable Fuels | 22 April 1996 |
SBI Life Insurance Company | SBILIFE | Financial Services | 25 September 2020 |
Shriram Finance | SHRIRAMFIN | Financial Services | 28 March 2024 |
State Bank of India | SBIN | Financial Services | 22 April 1996 |
Sun Pharma | SUNPHARMA | Healthcare | 17 January 2002 |
Tata Consultancy Services | TCS | Information Technology | 25 February 2005 |
Tata Consumer Products | TATACONSUM | Fast Moving Consumer Goods | 31 March 2021[j] |
Tata Motors | TATAMOTORS | Automobile and Auto Components | 22 April 1996 |
Tata Steel | TATASTEEL | Metals & Mining | 22 April 1996 |
Tech Mahindra | TECHM | Information Technology | 28 March 2014 |
Titan Company | TITAN | Consumer Durables | 2 April 2018 |
Trent | TRENT | Consumer Services | 30 September 2024 |
UltraTech Cement | ULTRACEMCO | Construction Materials | 28 September 2012 |
Wipro | WIPRO | Information Technology | 27 September 2013[k] |
Index changes
[edit]Changes in index constituents since Nifty 50 adopted free float criteria in 2009:
Statistics
[edit]Record values
[edit]Category | All-time highs[49] | |
---|---|---|
Value | Date | |
Closing | 26,216.05 | Thursday, 26 September 2024 |
Intraday | 26,277.35 | Friday, 27 September 2024 |
High Value Record
Record Value | First Touch |
---|---|
1000 | 2 December 1999 |
2000 | 2 December 2004 |
3000 | 30 January 2006 |
4000 | 1 December 2006 |
5000 | 27 September 2007 |
10000 | 25 July 2017 |
15000 | 5 February 2021 |
20000 | 11 September 2023 |
25000 | 1 August 2024 |
26000 | 24 September 2024 |
Major single day falls
[edit]Following are some of the notable single-day falls of the NIFTY 50 Index.
Date | Fall | Probable reason |
---|---|---|
31 March 1997 | 89.50 points (8.46%) | Congress withdraws support to the United Front coalition government.[50][51] |
28 October 1997 | 88.20 points (7.87%) | Asian financial crisis.[52] |
4 April 2000 | 106.65 points (6.90%) | Dot-com bubble burst.[53] |
14 May 2004 | 135.10 points (7.87%) | 2004 Indian general election results. |
17 May 2004 | 196.90 points (12.24%) | 2004 Indian general election results.[54] |
21 January 2008 | 496.50 points (8.70%) | US subprime mortgage crisis.[55] |
22 January 2008 | 309.50 points (5.94%) | US subprime mortgage crisis. |
24 October 2008 | 386 points (13.11%) | Global financial crisis.[56] |
24 August 2015 | 490.95 points (5.92%) | Chinese stock market crash.[57] |
9 March 2020 | 538.00 points (4.90%) | COVID-19 pandemic.[58] |
12 March 2020 | 868.25 points (8.30%) | COVID-19 pandemic; WHO declares it a pandemic.[59] |
16 March 2020 | 757.80 points (7.61%) | COVID-19 pandemic.[60] |
23 March 2020 | 1135.20 points (12.98%) | COVID-19 pandemic.[61] |
4 June 2024 | 1379.40 points (5.93%) | The incumbent government secured fewer seats in the 2024 Indian general elections than was predicted by the exit polls.[62] |
Major single day gains
[edit]Following are some of the notable single-day gains of the NIFTY 50 Index.
Date | Gain | Probable reason |
---|---|---|
18 May 2009 | 651.50 points (17.74%) | 2009 Indian general election results caused multiple trading curbs.[63] |
20 September 2019 | 655.45 points (6.12%) | Announcement of corporate tax rate cuts.[64] |
25 March 2020 | 516.80 points (6.62%) | US Senate passes a $2.2 trillion economic stimulus bill in response to the COVID-19 pandemic.[65] |
7 April 2020 | 708.40 points (8.76%) | Indications that COVID-19 cases were easing around the world.[66] |
1 February 2021 | 646.60 points (4.74%) | Union budget day by Nirmala Sitharaman.[67] |
Annual returns
[edit]The following table shows the annual development of the NIFTY 50 since 2000.[68][69] The historical daily returns data can be accessed from the NSE website.[70]
Year | Closing level | Change in Index in Points |
Change in Index in % |
---|---|---|---|
2000 | 1,263.55 | −216.90 | −14.65 |
2001 | 1,059.05 | −204.50 | −13.94 |
2002 | 1,093.50 | 34.45 | 3.25 |
2003 | 1,879.75 | 786.25 | 71.90 |
2004 | 2,080.50 | 200.75 | 10.68 |
2005 | 2,836.55 | 756.05 | 36.34 |
2006 | 3,966.40 | 1,129.85 | 39.83 |
2007 | 6,138.60 | 2,172.20 | 54.77 |
2008 | 2,959.15 | −3,179.45 | −51.79 |
2009 | 5,201.05 | 2,241.90 | 75.76 |
2010 | 6,134.50 | 933.45 | 17.95 |
2011 | 4,624.30 | −1,510.20 | −24.62 |
2012 | 5,905.10 | 1,280.80 | 27.70 |
2013 | 6,304.00 | 398.90 | 6.76 |
2014 | 8,282.70 | 1,978.70 | 31.39 |
2015 | 7,964.35 | −336.35 | −4.06 |
2016 | 8,185.80 | 239.45 | 3.01 |
2017 | 10,530.70 | 2,344.90 | 28.65 |
2018 | 10,862.55 | 331.85 | 3.15 |
2019 | 12,168.45 | 1,305.90 | 12.02 |
2020 | 13,981.75 | 1,813.30 | 14.90 |
2021 | 17,354.05 | 3,372.30 | 24.12 |
2022 | 18,105.30 | 751.25 | 4.32 |
2023 | 21,731.40 | 3621.1 | 20.02 |
Derivatives
[edit]Trading in futures and options on the NIFTY 50 is offered by the NSE and NSE International Exchange (NSEIX).[71][72] NSE offers weekly as well as monthly expiry options. It is the most traded index option in the world.[73][12]
NSE allows international traders to trade on the NIFTY 50 by GIFT NIFTY. The same index had previously operated under the name SGX Nifty, and was traded on the Singapore Exchange. It was rebranded to GIFT Nifty on 3 July 2023 and trading was moved to the NSE International Exchange (NSEIX) situated in GIFT City, Gandhinagar.[74][8][75] The CEO of NSEIX called it a watershed moment since it was the first time India got back an international contract which had previously been exported.[75][74]
NIFTY Next 50
[edit]NIFTY Next 50, also called NIFTY Junior, is an index of 50 companies whose free float market capitalisation comes after that of the companies in NIFTY 50. NIFTY Next 50 constituents are thus potential candidates for future inclusion in NIFTY 50.[76]
See also
[edit]Notes
[edit]- ^ also 18 September 1996 to 28 October 2002
- ^ also 22 April 1996 to 14 March 2008
- ^ also 24 December 1997 to 7 October 1998
- ^ also 8 September 1999 to 10 December 2004
- ^ also 22 April 1996 to 14 May 1997 and 26 May 1999 to 10 September 2008
- ^ also 22 April 1996 to 8 April 2010 and 25 March 2011 to 26 May 2017
- ^ also 22 April 1996 to 18 September 1996
- ^ also 22 April 1996 to 24 May 2004
- ^ also 18 September 1996 to 4 August 2003
- ^ also 22 April 1996 to 1 September 2006
- ^ also 17 January 2002 to 1 April 2013
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