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Index Constituents

Company Name PE Mcap/Sales P/BV EV/EBIDTA D/E ROCE ROE
indexConst.COMPANY 51.10 7.86 0.07 35.33 0.13 37.82 32.01
indexConst.COMPANY 60.52 7.95 0.03 47.91 0.90 48.18 66.62
indexConst.COMPANY 29.27 7.89 0.21 32.14 0.00 14.76 10.66
indexConst.COMPANY 32.88 9.11 0.14 39.53 0.01 26.46 21.12
indexConst.COMPANY 77.15 14.12 0.01 70.80 0.12 59.47 108.52
indexConst.COMPANY 26.80 1.40 0.55 13.10 1.15 9.04 14.35
indexConst.COMPANY 30.10 3.40 0.15 30.52 0.04 23.07 17.23
indexConst.COMPANY 15.08 0.69 0.69 7.72 0.72 10.72 11.67
indexConst.COMPANY 56.90 9.44 0.09 40.34 0.03 25.00 20.26
indexConst.COMPANY 26.25 7.57 0.14 21.02 0.00 38.99 29.60
indexConst.COMPANY 39.57 2.30 0.17 19.99 1.35 14.45 17.72
indexConst.COMPANY 31.61 2.94 0.19 26.43 1.64 13.71 21.98
indexConst.COMPANY 28.46 2.26 0.40 23.75 0.52 9.96 9.91
indexConst.COMPANY 78.26 6.98 0.15 56.17 0.16 10.64 9.33
indexConst.COMPANY 10.17 0.83 0.22 6.44 1.85 17.43 48.84
indexConst.COMPANY 0.00 0.94 0.40 12.42 0.74 12.10 7.48
indexConst.COMPANY 22.84 2.79 0.30 15.62 0.25 17.11 15.89
indexConst.COMPANY 99.42 5.37 0.08 42.68 0.71 14.16 15.04
indexConst.COMPANY 18.23 4.12 0.28 17.80 0.11 25.99 21.21
indexConst.COMPANY 88.16 7.60 0.03 120.64 0.79 24.82 30.95
indexConst.COMPANY 11.22 1.71 0.51 29.92 0.00 0.00 18.97
indexConst.COMPANY 13.70 3.31 0.49 11.08 4.02 12.14 17.27
indexConst.COMPANY 4.96 0.28 0.56 25.50 1.27 6.75 6.34
indexConst.COMPANY 18.84 8.14 0.38 83.14 0.00 0.00 14.14
indexConst.COMPANY 23.84 4.04 0.12 17.50 0.12 44.74 37.12
indexConst.COMPANY 31.23 10.90 0.17 23.15 3.89 11.76 23.46
indexConst.COMPANY 104.47 3.81 0.10 44.75 1.64 8.94 9.14
indexConst.COMPANY 36.20 8.26 0.18 30.47 0.08 16.79 16.46
indexConst.COMPANY 26.60 1.35 0.35 18.03 1.15 8.60 6.22
indexConst.COMPANY 18.77 7.04 0.38 29.15 0.00 0.00 17.20
indexConst.COMPANY 30.10 5.82 0.06 22.09 0.09 62.85 51.04
indexConst.COMPANY 17.60 6.43 0.32 62.18 0.00 0.00 17.66
indexConst.COMPANY 19.20 6.56 0.29 10.71 1.64 12.74 19.36
indexConst.COMPANY 29.93 3.43 0.21 37.68 0.01 13.92 11.52
indexConst.COMPANY 13.07 3.23 0.54 21.41 0.00 0.00 14.53
indexConst.COMPANY 13.75 4.15 0.43 25.38 0.00 0.00 8.75
indexConst.COMPANY 24.96 3.86 0.17 16.91 0.09 27.62 23.32
indexConst.COMPANY 6.90 0.55 0.97 6.52 0.49 13.34 14.13
indexConst.COMPANY 17.24 2.04 0.45 12.65 1.53 9.69 12.13
indexConst.COMPANY 8.04 2.17 0.28 7.44 0.08 29.53 56.03
indexConst.COMPANY 64.49 6.12 0.10 15.30 2.75 12.66 17.04
indexConst.COMPANY 57.61 2.55 0.20 16.52 0.10 20.20 17.72
indexConst.COMPANY 32.61 4.21 0.13 23.30 0.10 30.98 25.05
indexConst.COMPANY 76.21 15.70 0.11 51.50 0.00 19.30 14.89
indexConst.COMPANY 34.19 11.36 0.17 24.02 1.04 11.96 16.51
indexConst.COMPANY 81.09 1.82 0.11 1,594.20 0.05 0.62 9.60
indexConst.COMPANY 76.50 1.80 0.10 654.35 0.00 0.66 14.14
indexConst.COMPANY 45.73 5.26 0.19 36.18 0.20 12.86 9.62
indexConst.COMPANY 35.94 7.60 0.10 43.04 0.00 26.47 20.47
indexConst.COMPANY 31.16 3.09 0.24 15.57 4.31 12.69 28.18

Other Indices

INDEX NAME MARKET VALUE 52W HIGH 52W LOW
Nifty Next 50 71892.15
(1.4816%)
70933.55 42539.15
Nifty Bank 50002.0
(0.3116%)
51133.20 42105.40
Nifty 50 23465.60
(0.2851%)
23481.05 18646.70
Nifty 100 24571.65
(0.4996%)
24527.15 18578.05
BSE SmallCap 51199.99
(1.0281%)
50707.92 31902.03
BSE Sensex 76992.77
(0.2368%)
77145.46 62801.91
BSE MidCap 46058.76
(1.1794%)
45576.53 27911.73
BSE 100 24920.12
(0.5059%)
24873.02 19037.98

About Nifty 50

When we talk about the 'index of a stock market,' it means a stock market portfolio consisting of its securities based on their market capitalization and category. Indexes are crucial because they serve as a representation of a country's market and economy. For example, Nifty-50 is the benchmark index of the NSE (National Stock Exchange) of India. Benchmarks are indices that combine multiple securities to represent a specific aspect of the market.

The Nifty 50 index measures the performance of the top 50 blue-chip companies on the National Stock Exchange, as per their market capitalization. Even though the Nifty index only includes 50 of the 1600 companies that trade on the NSE, it accounts for up to 66% of the NSE's float-adjusted market capitalization (float-adjusted means when an index considers only the shares that are available for investors and not held by other companies or government). As a result, it is regarded as an accurate representation of the Indian stock market. Some of the features of the Nifty 50 index include-

a) The base year in the calculation is 1995, and the base value at which the index started trading was 1000
b) The Nifty 50 index is computed using the top 50 stocks on NSE
c) The selection of Nifty 50 companies is based on the free-float market capitalization
d) The Nifty index is managed and owned by IISL (India Index Services and Products Limited)
e) The choice of Nifty 50 companies is made from different sectors

The list of Nifty 50 companies is not static. It is refreshed semi-annually based on averages from the six months' data. The data considered is as per the month ending January and July. Stocks in the Nifty 50 are replaced (if any) on the last trading day of March, June, September, and December. Market participants are given four weeks' notice before they make any changes to the index. The parameters that make a company one among the Nifty 50 companies' list are-
a) The company should be based in India
b) For 90% of the observations for a portfolio of Rs.10 crores, the company's stock should have transacted at an average impact cost of 0.50% or less during the last six months. In simple terms, impact cost is the cost that an investor must pay to execute their buy or sell order compared to the ideal cost of that security.
c) The company's average free-float market capitalization must be at least 1.5 times that of the free-float market capitalization of the minor index constituent. Here, index constituent means a company in the index.

The Nifty 50 stock list consist of the Nifty 50 companies from different sectors (as per the month ending June 2021), including-
1. Financial services- this sector has a maximum weightage of 37.17%
2. IT- 17.54%
3. Oil and gas- 11.24%
4. Consumer goods- 10.85%
5. Automobile- 4.94%
6. Pharma- 3.66%
7. Metals- 4.07%
8. Construction- 2.83%
9. Cement and cement products- 2.71%
10. Telecom- 1.94%
11. Power- 1.68%
12. Services- 0.73%
13. Fertilizers and pesticides- 0.65%

What are the selection criteria to be included in Nifty 50?

For a company to be included in the Nifty 50, the following criteria must be met:

  • The company must be listed on the National Stock exchange (NSE).

  • The company must be available for F&O trading to be eligible for Nifty 50.

  • The company must have a listing history of 6 months.

  • The company must have an average impact cost of 0.50% or less during the last 6 months for at least 90% of observations for a basket size of Rs. 10 crores.

  • The company must have average free-float market capitalisation 1.5 times the average free-float market capitalisation of the smallest constituent.

Benefits of Investing in Nifty 50

The following are the potential benefits of investing in Nifty 50:

  • Diversification- Investment in Nifty 50 provides exposure to a diversified portfolio of companies from various sectors. This reduces risk associated with investing in a single company or sector.

  • Liquidity- Due to the significant volume of trading activity, the Nifty 50 is highly liquid. This liquidity makes it easier to trade at competitive prices.

  • Market performance- As the benchmark index, Nifty 50 represents a significant portion of the overall market. Thus, it enables participation in the overall market movement and captures the performance of the country’s leading companies.

  • Performance record- Throughout the years, the Nifty 50 has shown positive performance in the long run. Based on its historical performance, the index could potentially be a good investment opportunity.

  • Investment options- Several investment options are available to invest in Nifty 50, such as index funds and exchange-traded funds.

Nifty 50 FAQs

The NIFTY 50 is a benchmark index in the Indian stock market that represents the weighted average of 50 of the largest Indian firms listed on the National Stock Exchange. NSE Indices, a wholly owned subsidiary of NSE Strategic Investment Corporation Limited, owns and manages the Nifty 50.

NIFTY 50 is an abbreviation for National Stock Exchange FIFTY. It is also referred to as the CNX Nifty, the Nifty 50, or simple Nifty. It is a leading index for major corporations on India's National Stock Exchange.

The free-float market capitalization-weighted technique is used to generate the NIFTY 50 index. It represents the entire market value of all companies in the index relative to a base period value (November 3, 1995).

You can invest in the NIFTY 50 in two ways. One, buy stocks in the same proportion as their weightage in the NIFTY 50. The second alternative is to invest in NIFTY 50 Index Mutual Funds.

You can buy stocks in the Nifty 50 index directly in the precise proportion of the index. This entails replicating the proportions on a daily basis and rebalancing your portfolio. That can be a stressful, time-consuming, and difficult process. This will also necessitate a significant expenditure because you cannot acquire shares in fractions and the exact weight of the equities cannot be maintained.

The primary criteria for the inclusion of a stock in the NIFTY 50 is that a company be listed on the National Stock Exchange (NSE). The top 50 large-cap firms are chosen based on their market capitalization in free float. Another important criterion to consider when adding a stock to the NIFTY 50 is its liquidity.

Every six months, the index is reviewed to ensure that each security in the index meets all of the criteria.

If you are looking to stay updated with the latest news and updates regarding the NIFTY 50 index, there are several reliable sources you can turn to such as Reputable Financial News Websites, Stock Market News Apps, Stock Exchanges, Financial Newspapers, Social Media, and so on. Remember, it is essential to rely on trusted and credible sources while seeking news and updates about the NIFTY 50 index or any financial instrument. Always cross-verify information from multiple sources before making any investment decisions.

The NIFTY 50 Index provides a sectoral weightage of the Financial Services at 38.44%, IT at 12.74%, Energy at 12.15%, Consumer Goods at 9.73%, Automobiles at 5.52%, and Healthcare at 3.8%.

Financial Services is the largest sector in the Nifty 50 index, accounting for 38.44% of its weightage.

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Disclaimer

Disclaimer : ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, IndiaTel: (91 22) 6807 7100, Fax: (91 22) 6807 7803. I-Sec is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  Investments in securities market are subject to market risks, read all the related documents carefully before investing. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents are solely for informational and educational purpose.