NIFTY 50

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]

For other uses, see Nifty Fifty (disambiguation).

NIFTY 50
OperatorNSE Indices
ExchangesNational Stock Exchange of India
Constituents50
TypeLarge cap
Market capUS$2.27 trillion (April 2018)
Weighting methodCapitalization-weighted
Websitewww.nseindia.com

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]

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

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

List of 50 companies that form part of NIFTY 50 Index as in September 2020:[18]

Company NameSymbolSector
Adani PortsADANIPORTS.NSInfrastructure
Asian PaintsASIANPAINT.NSConsumer Goods
Axis BankAXISBANK.NSBanking
Bajaj AutoBAJAJ-AUTO.NSAutomobile
Bajaj FinanceBAJFINANCE.NSFinancial Services
Bajaj FinservBAJAJFINSV.NSFinancial Services
Bharti AirtelBHARTIARTL.NSTelecommunication
Bharat PetroleumBPCL.NSEnergy - Oil & Gas
Britannia IndustriesBRITANNIA.NSConsumer Goods
CiplaCIPLA.NSPharmaceuticals
Coal IndiaCOALINDIA.NSEnergy & Mining
Divi's LaboratoriesDIVISLAB.NSPharmaceuticals
Dr. Reddy's LaboratoriesDRREDDY.NSPharmaceuticals
Eicher MotorsEICHERMOT.NSAutomobile
GAILGAIL.NSEnergy - Oil & Gas
Grasim IndustriesGRASIM.NSCement
HCL TechnologiesHCLTECH.NSInformation Technology
HDFCHDFC.NSFinancial Services
HDFC BankHDFCBANK.NSBanking
HDFC LifeHDFCLIFE.NSInsurance
Hero MotoCorpHEROMOTOCO.NSAutomobile
Hindalco IndustriesHINDALCO.NSMetals
Hindustan UnileverHINDUNILVR.NSConsumer Goods
ICICI BankICICIBANK.NSBanking
IndusInd BankINDUSINDBK.NSBanking
InfosysINFY.NSInformation Technology
Indian Oil CorporationIOC.NSEnergy - Oil & Gas
ITC LimitedITC.NSConsumer Goods
JSW SteelJSWSTEEL.NSMetals
Kotak Mahindra BankKOTAKBANK.NSBanking
Larsen & ToubroLT.NSConstruction
Mahindra & MahindraM&M.NSAutomobile
Maruti SuzukiMARUTI.NSAutomobile
Nestlé IndiaNESTLEIND.NSConsumer Goods
NTPCNTPC.NSEnergy - Power
Oil and Natural Gas CorporationONGC.NSEnergy - Oil & Gas
Power Grid Corporation of IndiaPOWERGRID.NSEnergy - Power
Reliance IndustriesRELIANCE.NSEnergy - Oil & Gas
State Bank of IndiaSBIN.NSBanking
SBI Life Insurance CompanySBILIFE.NSInsurance
Shree CementsSHREECEM.NSCement
Sun PharmaceuticalSUNPHARMA.NSPharmaceuticals
Tata MotorsTATAMOTORS.NSAutomobile
Tata SteelTATASTEEL.NSMetals
Tata Consultancy ServicesTCS.NSInformation Technology
Tech MahindraTECHM.NSInformation Technology
Titan CompanyTITAN.NSConsumer Goods
UltraTech CementULTRACEMCO.NSCement
United Phosphorus LimitedUPL.NSChemicals
WiproWIPRO.NSInformation Technology

Major single day falls

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.[19][20]
4 24 August 2015 5.92% (490.95 points) Driven by the meltdown in the Chinese Stock market.[21]
5 24 June 2016 181.5 points Driven by the Brexit Referendum.[22]
6 11 November 2016 229.45 points Driven by the Demonetization move by the Indian Government and the 2016 US Election Results.[23]
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.[24]
12 8 July 2019 252.55 points Due to Union Budget FY 2019.[24]
13 22 August 2019 177.35 points (1.62%) Due to concerns about slowing Indian economy.[25][26]
14 3 September 2019 225.35 points (2.04%) Due to Multiple PSU Bank Merger Announcements.[27][26]
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.[28][26]
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.[29]
17 9 March 2020 538.00 points (4.90%) Driven by the COVID-19 pandemic.[30][31]
18 12 March 2020 868.25 points (8.30%) Driven by the COVID-19 pandemic after WHO declared it a pandemic.[32]
19 16 March 2020 757.80 points (7.61%) Driven by the COVID-19 pandemic.[33]
20 23 March 2020 1135.20 points (12.98%) Driven by the COVID-19 pandemic.[34]
21 11 June 2020 214.15 points (2.12%) Driven by the weak economic outlook as predicted by the United States Federal Reserve.[35][36]

Major single day gains

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.
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[37]
8 1 Feb 2021 4.74% (646.60 points) Union budget day by Nirmala Sitharaman

Annual returns

The following table shows the annual development of the NIFTY 50 since 2000.[38] The historical daily returns data can be accessed from the NSE website.[39]

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

Trading in call and put options on the Nifty 50 are offered by the NSE.[40]

NIFTY Next 50

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.[41]

Nifty Next 50 constituents as of September 2020:[42][43]

Constituents
Company NameSymbolSector
Abbott IndiaABBOTINDIAPharmaceuticals
ACCACCCement
Adani Green EnergyADANIGREENEnergy - Power
Adani TransmissionADANITRANSEnergy - Power
Alkem LaboratoriesALKEMPharmaceuticals
Ambuja CementsAMBUJACEMCement
Aurobindo PharmaAUROPHARMAPharmaceuticals
Avenue SupermartsDMARTConsumer Goods
Bajaj HoldingsBAJAJHLDNGFinancial Services
Bandhan BankBANDHANBNKBanking
Bank of BarodaBANKBARODABanking
Berger PaintsBERGEPAINTConsumer Goods
BioconBIOCONPharmaceuticals
BoschBOSCHLTDAutomobile
Cadila HealthcareCADILAHCPharmaceuticals
Colgate-PalmoliveCOLPALConsumer Goods
Container Corporation of IndiaCONCORServices - Transport & Logistics
DaburDABURConsumer Goods
DLFDLFConstruction
General Insurance Corporation of IndiaGICREFinancial Services
Godrej Consumer Products LimitedGODREJCPConsumer Goods
HavellsHAVELLSConsumer Goods
HDFC AMCHDFCAMCFinancial Services
Hindustan PetroleumHINDPETROEnergy - Oil & Gas
Hindustan ZincHINDZINCMetals
ICICI Lombard General InsuranceICICIGIFinancial Services
ICICI PrudentialICICIPRULIFinancial Services
Indraprastha GasIGLEnergy - Oil & Gas
Indus TowersINDUSTOWERTelecommunication
Info EdgeNAUKRIInternet
Interglobe AviationINDIGOServices - Transport & Logistics
L&T InfotechLTIInformation Technology
LupinLUPINPharmaceuticals
MaricoMARICOConsumer Goods
Motherson Sumi SystemsMOTHERSUMIAutomobile
Muthoot FinanceMUTHOOTFINFinancial Services
NMDCNMDCMetals
Oracle Financial Services SoftwareOFSSInformation Technology
Petronet LNGPETRONETEnergy - Oil & Gas
Pidilite IndustriesPIDILITINDChemicals
Piramal EnterprisesPELPharmaceuticals
Power Finance CorporationPFCFinancial Services
Procter & GamblePGHHConsumer Goods
Punjab National BankPNBBanking
SBI CardSBICARDFinancial Services
SiemensSIEMENSIndustrial Manufacturing
Tata Consumer ProductsTATACONSUMConsumer Goods
Torrent PharmaceuticalsTORNTPHARMPharmaceuticals
United BreweriesUBLConsumer Goods
United SpiritsMCDOWELL-NConsumer Goods

NIFTY sectoral indices
Index[44][45]Constituents
NIFTY AutoAmara 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 BankAxis Bank, Bandhan Bank, Bank of Baroda, 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 DurablesBata, Blue Star, Crompton Greaves, Dixon Technologies, Havells, Orient Electric, Rajesh Exports, Relaxo, Symphony, Titan Company, TTK Prestige, V-Guard, VIP Industries, Voltas, Whirlpool
NIFTY Financial ServicesAxis Bank, Bajaj Finance, Bajaj Finserv, Bajaj Holdings, Cholamandalam, HDFC AMC, HDFC, HDFC Bank, HDFC Life, ICICI Bank, ICICI Lombard, ICICI Prudential, Kotak Mahindra Bank, M&M Finance, Piramal Enterprises, Power Finance Corporation, REC, SBI Life Insurance Company, Shriram Transport Finance, State Bank of India
NIFTY FMCGBritannia, 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 ITHCL Technologies, Info Edge, Infosys, L&T Infotech, Mindtree, Mphasis, NIIT Technologies, Tata Consultancy Services, Tech Mahindra, Wipro
NIFTY MediaDB Corp, Dish TV, Hathway, INOX Leisure, Jagran Prakashan, PVR Cinemas, Sun TV Network, TV Today Network, TV18, Zee Entertainment Enterprises
NIFTY MetalAPL Apollo Tubes, Coal India, Hindalco, Hindustan Copper, 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 & GasAdani 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 PharmaAlkem Laboratories, Aurobindo Pharma, Biocon, Cadila Healthcare, Cipla, Divis Laboratories, Dr. Reddy's Laboratories, Lupin, Sun Pharmaceutical, Torrent Pharmaceuticals
NIFTY Private BankAxis Bank, Bandhan Bank, City Union Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank
NIFTY PSU BankBank of Baroda, Bank of Maharashtra, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, J&K Bank, Punjab National Bank, State Bank of India, UCO Bank, Union Bank of India
NIFTY RealtyBrigade Enterprises, DLF, Godrej Properties, Indiabulls Real Estate, Oberoi Realty, Omaxe, Phoenix Mills, Prestige Group, Sobha Developers, Sunteck

See also

References
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