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NIFTY 50

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NIFTY 50
Performance of the NIFTY 50 index between 1990 and 2024
Foundation22 April 1996 (28 years ago) (22 April 1996)
OperatorNSE Indices
ExchangesNational Stock Exchange of India
Trading symbol^NSEI
Constituents50
TypeLarge cap
Weighting methodFree-float capitalization-weighted
Related indicesNIFTY Next 50
NIFTY 500
Websitewww.niftyindices.com/indices/equity/broad-based-indices/NIFTY--50

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]

  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.
  2. The company should have a listing history of 6 months.
  3. Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index.
  4. 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:

Constituent excluded Constituent included Date of replacement Reason for exclusion Ref
Grasim Industries Kotak Mahindra Bank 8 April 2010 Demerger [19]
ABB India Bajaj Auto 1 October 2010 Inadequate market capitalization [20]
Idea Cellular Dr. Reddy's Laboratories
Unitech Sesa Goa
Suzlon Grasim Industries 25 March 2011 [21]
Reliance Capital Coal India 10 October 2011 [22]
Reliance Communications Asian Paints 27 April 2012 [23]
Reliance Power Bank of Baroda
Steel Authority of India Lupin 28 September 2012 [24]
Sterlite Industries UltraTech Cement
Siemens IndusInd Bank 1 April 2013 [25]
Wipro NMDC Demerger
Reliance Infrastructure Wipro 27 September 2013 Inadequate market capitalization [26]
JP Associates Tech Mahindra 28 March 2014 [27]
Ranbaxy Laboratories United Spirits
United Spirits Zee Entertainment Enterprises 19 September 2014 Exclusion from F&O segment [28]
DLF Idea Cellular 27 March 2015 Inadequate market capitalization [29]
Jindal Steel & Power Yes Bank
IDFC Bosch India 29 May 2015 Demerger [30]
NMDC Adani Ports & SEZ 28 September 2015 Inadequate market capitalization [31]
Cairn India Aurobindo Pharma 1 April 2016 Merger [32]
Punjab National Bank Bharti Infratel Inadequate market capitalization
Vedanta Eicher Motors Merger
BHEL Indiabulls Housing Finance 31 March 2017 Inadequate market capitalization [33]
Idea Cellular Indian Oil Corporation
Grasim Industries Vedanta 26 May 2017 Demerger [34]
ACC Bajaj Finance 29 September 2017 Inadequate market capitalization [35]
Bank of Baroda Hindustan Petroleum
Tata Power UPL
Ambuja Cements Bajaj Finserv 2 April 2018 [36]
Aurobindo Pharma Grasim Industries
Bosch India Titan Company
Lupin JSW Steel 28 September 2018 [37]
Hindustan Petroleum Britannia Industries 29 March 2019 [38]
Indiabulls Housing Finance Nestlé India 27 September 2019 [39]
Yes Bank Shree Cement 19 March 2020 Reconstruction scheme [40]
Vedanta HDFC Life 31 July 2020 Proposed delisting [41]
Zee Entertainment Enterprises SBI Life Insurance Company 25 September 2020 Inadequate market capitalization [35]
Bharti Infratel Divi's Laboratories Merger
GAIL Tata Consumer Products 31 March 2021 Inadequate market capitalization [42]
Indian Oil Corporation Apollo Hospitals 31 March 2022 [43]
Shree Cement Adani Enterprises 30 September 2022 [44]
HDFC LTIMindtree 13 July 2023 Merger [45]
UPL Shriram Finance 28 March 2024 Inadequate market capitalization [46]
Divi's Laboratories Bharat Electronics 30 September 2024 [47][48]
LTIMindtree Trent

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]
  1. ^ also 18 September 1996 to 28 October 2002
  2. ^ also 22 April 1996 to 14 March 2008
  3. ^ also 24 December 1997 to 7 October 1998
  4. ^ also 8 September 1999 to 10 December 2004
  5. ^ also 22 April 1996 to 14 May 1997 and 26 May 1999 to 10 September 2008
  6. ^ also 22 April 1996 to 8 April 2010 and 25 March 2011 to 26 May 2017
  7. ^ also 22 April 1996 to 18 September 1996
  8. ^ also 22 April 1996 to 24 May 2004
  9. ^ also 18 September 1996 to 4 August 2003
  10. ^ also 22 April 1996 to 1 September 2006
  11. ^ also 17 January 2002 to 1 April 2013

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