NIFTY 50

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NIFTY 50
OperatorNSE Indices
ExchangesNational Stock Exchange of India
Constituents50
TypeLarge cap
Weighting methodCapitalization-weighted
Websitewww.nseindia.com

The NIFTY 50 is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.[1] It is one of the two main stock indices used in India, the other being the BSE SENSEX.[2]

Nifty 50 is owned and managed by NSE Indices (previously known as India Index Services & Products Limited), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited.[3][4] NSE Indices had a marketing and licensing agreement with Standard & Poor's for co-branding equity indices until 2013. The Nifty 50 index was launched on 22 April 1996,[5] and is one of the many stock indices of Nifty.

The NIFTY 50 index has shaped up to be the largest single financial product in India, with an ecosystem consisting of exchange-traded funds (onshore and offshore), exchange-traded options at NSE,[6] and futures and options abroad at the SGX.[7] NIFTY 50 is the world's most actively traded contract. WFE, IOMA and FIA surveys endorse NSE's leadership position.[8][9][citation needed]

The NIFTY 50 index covers 14 sectors (as on 20 June 2020) of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. Between 2008 & 2012, the NIFTY 50 index's share of NSE's market capitalisation fell from 65% to 29%[10] 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 a weightage of 39.47% to financial services, 15.31% to Energy, 13.01% to IT, 12.38% to consumer goods, 6.11% to Automobiles and 0% to the agricultural sector.[11]

The NIFTY 50 index is a free float market capitalisation weighted index. The index was initially calculated on a full market capitalisation methodology. On 26 June 2009, the computation was changed to a free-float methodology. The base period for the NIFTY 50 index is 3 November 1995, which marked the completion of one year of operations of the National Stock Exchange Equity Market Segment. The base value of the index has been set at 1000 and a base capital of ₹ 2.06 trillion.[12][13]

Former constituents[edit]

In February 2019, Britannia Industries entered the Nifty 50 by replacing Hindustan Petroleum Corporation Ltd. HPCL was moved into Nifty Next 50.[14] From 27 September 2019, Nestlé India was included in the Nifty 50 index and the Nifty 50 Equal Weight index, it replaced Indiabulls Housing Finance Ltd.[15] On 31 July 2020 HDFC Life was included in the Nifty 50 index, it replaced Vedanta Limited.[16] In September 2020, Divi's Laboratories and SBI Life Insurance Company replaced Bharti Infratel and Zee Entertainment Enterprises on the Nifty 50 index.[17]

Constituents[edit]

Company Name Symbol Sector
Adani Ports ADANIPORTS.NS Infrastructure
Asian Paints 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
Bharat Petroleum BPCL.NS Energy - Oil & Gas
Britannia Industries BRITANNIA.NS Consumer Goods
Cipla CIPLA.NS Pharmaceuticals
Coal India COALINDIA.NS Energy & Mining
Divi's Laboratories DIVISLAB.NS Pharmaceuticals
Dr. Reddy's Laboratories DRREDDY.NS Pharmaceuticals
Eicher Motors EICHERMOT.NS Automobile
Grasim Industries GRASIM.NS Cement
HCL Technologies HCLTECH.NS Information Technology
HDFC HDFC.NS Financial Services
HDFC Bank HDFCBANK.NS Banking
HDFC Life HDFCLIFE.NS Insurance
Hero MotoCorp HEROMOTOCO.NS Automobile
Hindalco Industries HINDALCO.NS Metals
Hindustan Unilever HINDUNILVR.NS Consumer Goods
ICICI Bank ICICIBANK.NS Banking
IndusInd Bank INDUSINDBK.NS Banking
Infosys INFY.NS Information Technology
Indian Oil Corporation 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
Nestlé India NESTLEIND.NS Consumer Goods
NTPC NTPC.NS Energy - Power
Oil and Natural Gas Corporation ONGC.NS Energy - Oil & Gas
Power Grid Corporation of India POWERGRID.NS Energy - Power
Reliance Industries RELIANCE.NS Energy - Oil & Gas
State Bank of India SBIN.NS Banking
SBI Life Insurance Company SBILIFE.NS Insurance
Shree Cements SHREECEM.NS Cement
Sun Pharmaceutical SUNPHARMA.NS Pharmaceuticals
Tata Motors TATAMOTORS.NS Automobile
Tata Steel TATASTEEL.NS Metals
Tata Consultancy Services TCS.NS Information Technology
Tata Consumer Products TATACONSUM.NS Consumer Goods
Tech Mahindra TECHM.NS Information Technology
Titan Company TITAN.NS Consumer Goods
UltraTech Cement ULTRACEMCO.NS Cement
United Phosphorus Limited UPL.NS Chemicals
Wipro WIPRO.NS Information Technology

Major single day falls[edit]

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

Sl. No. Date Fall Probable Reason
1 28 October 1997 8.01% Investors deserted emerging Asian shares during the Asian Financial Crisis. Crashes also occurred in Thailand, Indonesia, South Korea and 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.[18][19]
4 24 August 2015 5.92% (490.95 points) Driven by the meltdown in the Chinese Stock market.[20]
5 24 June 2016 181.5 points Driven by the Brexit Referendum.[21]
6 11 November 2016 229.45 points Driven by the Demonetization move by the Indian Government and the 2016 US Election Results.[22]
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 132.80 points Due to Union Budget FY 2019 and Global Equity sell-off.[23]
12 8 July 2019 252.55 points Due to Union Budget FY 2019.[23]
13 22 August 2019 177.35 points (1.62%) Due to concerns about slowing Indian economy.[24][25]
14 3 September 2019 225.35 points (2.04%) Due to Multiple PSU Bank Merger Announcements.[26][25]
15 17 September 2019 185.90 points (1.69%) Driven by rising crude oil prices and the drone attack on Saudi Arabia's oil fields.[27][25]
16 1 February 2020 373.95 points (3.11%) Driven by the Union Budget FY 2020 and coronavirus pandemic which saw global breakdown a day before Budget.[28]
17 9 March 2020 538.00 points (4.90%) Driven by the COVID-19 pandemic.[29][30]
18 12 March 2020 868.25 points (8.30%) Driven by the COVID-19 pandemic after WHO declared it a pandemic.[31]
19 16 March 2020 757.80 points (7.61%) Driven by the COVID-19 pandemic.[32]
20 23 March 2020 1135.20 points (12.98%) Driven by the COVID-19 pandemic.[33]
21 11 June 2020 214.15 points (2.12%) Driven by the weak economic outlook as predicted by the United States Federal Reserve.[34][35]
22 26 Feb 2021 568.20 (3.76%) Global breakdown.
23 12 Apr 2021 524.05 (3.53%) Rise in daily COVID cases, speculation of complete lockdown in the Maharashtra state

Major single day gains[edit]

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

Sl. No. Date High Probable Reason
1 20 May 2019 3.69% (421.10 points) Exit Polls of 2019 General elections predict clear 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 8 August 2019 1.63% (176.95 points) FPI surcharge rollback
4 26 August 2019 2.16% (234.45 points) Relief measures, likely US-China trade talks begin.[1]
5 20 September 2019 6.12% ( 655.45 points) Indian FM announced a cut in the corporate tax rate for domestic companies and new domestic manufacturing companies
6 23 September 2019 3.73% (420.65 points ) Following a corporate tax cut in India
7 7 April 2020 8.76% (708.40 points) Positive news that infection numbers were peaking in some of the worst affected areas around the world[36]
8 1 Feb 2021 4.74% (646.60 points) Union budget day by Nirmala Sitharaman

Annual returns[edit]

The following table shows the annual development of the NIFTY 50 since 2000.[37] The historical daily returns data can be accessed from the NSE website.[38]

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 −318.35 −3.84
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

Derivatives[edit]

Trading in call and put options on the Nifty 50 are offered by the NSE.[39]

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.[40]

Nifty Next 50 constituents as of April 2021:[41][42]

Constituents
Company Name Symbol Sector
Abbott India ABBOTINDIA Pharmaceuticals
ACC ACC Cement
Adani Enterprises ADANIENT Consumer Goods
Adani Green Energy ADANIGREEN Energy - Power
Adani Transmission ADANITRANS Energy - Power
Alkem Laboratories ALKEM Pharmaceuticals
Ambuja Cements AMBUJACEM Cement
Apollo Hospitals APOLLOHOSP Healthcare
Aurobindo Pharma AUROPHARMA Pharmaceuticals
Avenue Supermarts DMART Consumer Goods
Bajaj Holdings BAJAJHLDNG Financial Services
Bandhan Bank BANDHANBNK Banking
Berger Paints BERGEPAINT Consumer Goods
Biocon BIOCON Pharmaceuticals
Bosch BOSCHLTD Automobile
Cadila Healthcare CADILAHC Pharmaceuticals
Colgate-Palmolive COLPAL Consumer Goods
Dabur DABUR Consumer Goods
DLF DLF Construction
GAIL GAIL.NS Energy - Oil & Gas
Godrej Consumer Products Limited GODREJCP Consumer Goods
Havells HAVELLS Consumer Goods
HDFC AMC HDFCAMC Financial Services
Hindustan Petroleum HINDPETRO Energy - Oil & Gas
ICICI Lombard General Insurance ICICIGI Financial Services
ICICI Prudential ICICIPRULI Financial Services
Indraprastha Gas IGL Energy - Oil & Gas
Indus Towers INDUSTOWER Telecommunication
Info Edge NAUKRI Internet
Interglobe Aviation INDIGO Services - Transport & Logistics
Jubilant FoodWorks JUBLFOOD Consumer Goods
L&T Infotech LTI Information Technology
Lupin LUPIN Pharmaceuticals
Marico MARICO Consumer Goods
Motherson Sumi Systems MOTHERSUMI Automobile
MRF MRF Tyres
Muthoot Finance MUTHOOTFIN Financial Services
NMDC NMDC Metals
Petronet LNG PETRONET Energy - Oil & Gas
Pidilite Industries PIDILITIND Chemicals
Piramal Enterprises PEL Pharmaceuticals
Procter & Gamble PGHH Consumer Goods
Punjab National Bank PNB Banking
SBI Card SBICARD Financial Services
Siemens SIEMENS Industrial Manufacturing
Torrent Pharmaceuticals TORNTPHARM Pharmaceuticals
United Breweries UBL Consumer Goods
United Spirits MCDOWELL-N Consumer Goods
Vedanta VEDL Metals

NIFTY sectoral indices[edit]

Index[43][44] Constituents
NIFTY Auto Amara Raja Batteries, Ashok Leyland, Bajaj Auto, Balkrishna Industries, Bharat Forge, Bosch, Eicher Motors, Exide, Hero Motocorp, Mahindra & Mahindra, Maruti Suzuki, Motherson Sumi Systems, MRF, Tata Motors, TVS Motors
NIFTY Bank Axis Bank, AU Small Finance Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, RBL Bank, State Bank of India
NIFTY Consumer Durables Amber Enterprises, Bata, Blue Star, Crompton Greaves, Dixon Technologies, Havells, Kajaria Ceramics, Orient Electric, Rajesh Exports, Relaxo, Titan Company, TTK Prestige, V-Guard, Voltas, Whirlpool
NIFTY Financial Services Axis Bank, Bajaj Finance, Bajaj Finserv, Cholamandalam, HDFC, HDFC AMC, HDFC Bank, HDFC Life, ICICI Bank, ICICI Lombard, ICICI Prudential, Kotak Mahindra Bank, M&M Finance, Muthoot Finance, Piramal Enterprises, Power Finance Corporation, REC, SBI Life Insurance Company, Shriram Transport Finance, State Bank of India
NIFTY FMCG Britannia, Colgate-Palmolive, Dabur, Emami, Godrej Consumer Products, Hindustan Unilever, ITC Limited, Jubilant FoodWorks, Marico, Nestlé India, Procter & Gamble, Tata Consumer Products, United Breweries, United Spirits, Varun Beverages
NIFTY Healthcare Abbott India, Alkem Laboratories, Apollo Hospitals, Aurobindo Pharma, Biocon, Cadila Healthcare, Cipla, Divi's Laboratories, Dr Lal PathLabs, Dr. Reddy's Laboratories, Fortis Healthcare, Glenmark Pharmaceuticals, Ipca Laboratories, Laurus Labs, Lupin, Natco Pharma, Pfizer India, Sanofi India, Sun Pharmaceutical, Torrent Pharmaceuticals
NIFTY IT Coforge, HCL Technologies, Infosys, L&T Infotech, Mindtree, Mphasis, Oracle Financial Services Software, Tata Consultancy Services, Tech Mahindra, Wipro
NIFTY Media DB Corp, Dish TV, INOX Leisure, Jagran Prakashan, Network18, PVR Cinemas, Sun TV Network, TV Today Network, TV18, Zee Entertainment Enterprises
NIFTY Metal Adani Enterprises, APL Apollo Tubes, Coal India, Hindalco, Hindustan Zinc, Jindal Steel, JSW Steel, MOIL, National Aluminium Company, NMDC, Ratnamani Metals & Tubes, Steel Authority of India, Tata Steel, Vedanta, Welspun Corp
NIFTY Oil & Gas Adani Gas, Aegis Logistics, BPCL, Castrol, GAIL, Gujarat Gas, Gujarat State Petronet, HPCL, Indraprastha Gas, IOC, Mahanagar Gas, Oil India, ONGC, Petronet LNG, Reliance Industries
NIFTY Pharma Alkem Laboratories, Aurobindo Pharma, Biocon, Cadila Healthcare, Cipla, Divi's Laboratories, Dr. Reddy's Laboratories, Lupin, Sun Pharmaceutical, Torrent Pharmaceuticals
NIFTY Private Bank Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank, Yes Bank
NIFTY PSU Bank Bank of Baroda, Bank of Maharashtra, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, J&K Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of India, UCO Bank, Union Bank of India
NIFTY Realty Brigade Enterprises, DLF, Godrej Properties, Hemisphere Properties, Indiabulls Real Estate, Oberoi Realty, Phoenix Mills, Prestige Group, Sobha Developers, Sunteck

See also[edit]

References[edit]

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  16. ^ HDFC Life to replace Vedanta in Nifty 50
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  33. ^ Guha, Ishita (23 March 2020). "Key indices suffer massive sell-off; Sensex ends down nearly 4,000 points". mint. Retrieved 6 October 2020.
  34. ^ "Fed to keep buying bonds, foresees no rate hike through 2022". The Economic Times. 11 June 2020. Retrieved 11 June 2020.
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  41. ^ "NIFTY Next 50 Index". NSE India. Retrieved 6 October 2020.
  42. ^ "Nifty 50 next rejig: List of stocks to be included, excluded from 31 March". mint. 23 February 2021.
  43. ^ "Sectoral Indices". NSE India. Retrieved 4 May 2020.
  44. ^ "Replacements in Indices" (PDF). www1.nseindia.com. 23 February 2021. Retrieved 30 March 2021.

External links[edit]

Nifty 50 Share Price