Nifty 50 stocks weightage is given in the table below. Do read the post completely to get a better understanding of the index.
Table of Contents
What is Nifty 50?
Nifty 50 is a benchmark index. When people say the overall Indian stock market is performing well they generally mean nifty 50 index. At the moment Nifty 50 consists of 50 diversified stocks from 14 sectors of the Indian economy. It is used as a referencing benchmark to see how the overall Indian stock market performs. The index was started in November 1995.
NSE(National Stock Exchange) maintains the nifty 50 index. Stocks are added or removed depending on their performance but it always maintains a minimum of 50 stocks in the index. All the stocks in the index are blue-chip large stocks and highly liquid stocks. The index is also used as a reference for the derivative market.
The weight of each stock in the Nifty 50 index is selected on Free Float Market Capitalization. The index is reviewed on a semi-annual basis in March and September using 6-month average data as of January 31, and July 31 respectively.
Nifty 50 Stocks Weightage:
Nifty 50 Companies weightage is given in the table below. The highest weightage is given to HDFC Bank at 10.97% followed by Reliance Industries at 10.28%.
UPL Ltd has been replaced by Shriram Finance Ltd, the exact weightage is assumed to be the same as UPL.
| No. | Company Name | Industry | Symbol | Weightage |
|---|---|---|---|---|
| 1 | HDFC Bank Ltd. | Financial Services | HDFCBANK | 10.97% |
| 2 | Reliance Industries Ltd. | Oil Gas & Consumable Fuels | RELIANCE | 10.28% |
| 3 | ICICI Bank Ltd. | Financial Services | ICICIBANK | 7.68% |
| 4 | Infosys Ltd. | Information Technology | INFY | 6.22% |
| 5 | Tata Consultancy Services Ltd. | Information Technology | TCS | 4.32% |
| 6 | Larsen & Toubro Ltd. | Construction | LT | 4.28% |
| 7 | ITC Ltd. | Fast Moving Consumer Goods | ITC | 3.74% |
| 8 | Axis Bank Ltd. | Financial Services | AXISBANK | 3.10% |
| 9 | State Bank of India | Financial Services | SBIN | 2.99% |
| 10 | Bharti Airtel Ltd. | Telecommunication | BHARTIARTL | 2.96% |
| 11 | Kotak Mahindra Bank Ltd. | Financial Services | KOTAKBANK | 2.58% |
| 12 | Hindustan Unilever Ltd. | Fast Moving Consumer Goods | HINDUNILVR | 2.24% |
| 13 | Bajaj Finance Ltd. | Financial Services | BAJFINANCE | 1.88% |
| 14 | HCL Technologies Ltd. | Information Technology | HCLTECH | 1.83% |
| 15 | Mahindra & Mahindra Ltd. | Automobile and Auto Components | M&M | 1.80% |
| 16 | Sun Pharmaceutical Industries Ltd. | Healthcare | SUNPHARMA | 1.77% |
| 17 | Tata Motors Ltd. | Automobile and Auto Components | TATAMOTORS | 1.74% |
| 18 | NTPC Ltd. | Power | NTPC | 1.66% |
| 19 | Titan Company Ltd. | Consumer Durables | TITAN | 1.57% |
| 20 | Maruti Suzuki India Ltd. | Automobile and Auto Components | MARUTI | 1.55% |
| 21 | Power Grid Corporation of India Ltd. | Power | POWERGRID | 1.34% |
| 22 | Asian Paints Ltd. | Consumer Durables | ASIANPAINT | 1.32% |
| 23 | Tata Steel Ltd. | Metals & Mining | TATASTEEL | 1.21% |
| 24 | UltraTech Cement Ltd. | Construction Materials | ULTRACEMCO | 1.19% |
| 25 | Oil & Natural Gas Corporation Ltd. | Oil Gas & Consumable Fuels | ONGC | 1.07% |
| 26 | Coal India Ltd. | Oil Gas & Consumable Fuels | COALINDIA | 1.04% |
| 27 | IndusInd Bank Ltd. | Financial Services | INDUSINDBK | 1.01% |
| 28 | Adani Ports and Special Economic Zone Ltd. Services | Services | ADANIPORTS | 1.01% |
| 29 | Nestle India Ltd. | Fast Moving Consumer Goods | NESTLEIND | 0.96% |
| 30 | Bajaj Auto Ltd. | Automobile and Auto Components | BAJAJ-AUTO | 0.93% |
| 31 | Bajaj Finserv Ltd. | Financial Services | BAJAJFINSV | 0.90% |
| 32 | Adani Enterprises Ltd. | Metals & Mining | ADANIENT | 0.90% |
| 33 | Grasim Industries Ltd. | Construction Materials | GRASIM | 0.84% |
| 34 | Tech Mahindra Ltd. | Information Technology | TECHM | 0.83% |
| 35 | Dr. Reddy’s Laboratories Ltd. | Healthcare | DRREDDY | 0.81% |
| 36 | Cipla Ltd. | Healthcare | CIPLA | 0.81% |
| 37 | JSW Steel Ltd. | Metals & Mining | JSWSTEEL | 0.79% |
| 38 | Tata Consumer Products Ltd. | Fast Moving Consumer Goods | TATACONSUM | 0.78% |
| 39 | Hindalco Industries Ltd. | Metals & Mining | HINDALCO | 0.77% |
| 40 | Wipro Ltd. | Information Technology | WIPRO | 0.76% |
| 41 | SBI Life Insurance Company Ltd. | Financial Services | SBILIFE | 0.73% |
| 42 | HDFC Life Insurance Company Ltd. | Financial Services | HDFCLIFE | 0.64% |
| 43 | Apollo Hospitals Enterprise Ltd. | Healthcare | APOLLOHOSP | 0.64% |
| 44 | Britannia Industries Ltd. | Fast Moving Consumer Goods | BRITANNIA | 0.61% |
| 45 | Hero MotoCorp Ltd. | Automobile and Auto Components | HEROMOTOCO | 0.60% |
| 46 | Bharat Petroleum Corporation Ltd. | Oil Gas & Consumable Fuels | BPCL | 0.60% |
| 47 | Eicher Motors Ltd. | Automobile and Auto Components | EICHERMOT | 0.54% |
| 48 | LTIMindtree Ltd. | Information Technology | LTIM | 0.51% |
| 49 | Divi’s Laboratories Ltd. | Healthcare | DIVISLAB | 0.46% |
| 50 | UPL Ltd. (To be replaced by Shriram Finance) | Chemicals | UPL | 0.25% |
Nifty Sector Weightage:
There are 14 sectors in the Nifty 50 Index.
| Sectors | Weightage (%) |
|---|---|
| Financial Services | 32.48% |
| Information Technology | 14.46% |
| Oil Gas & Consumable Fuels | 12.99% |
| Fast Moving Consumer Goods | 8.34% |
| Automobile and Auto Components | 7.16% |
| Healthcare | 4.5% |
| Construction | 4.28% |
| Power | 4% |
| Metals & Mining | 3.66% |
| Telecommunication | 2.96% |
| Consumer Durables | 2.9% |
| Construction Materials | 2.03% |
| Services | 1.01% |
| Chemicals | 0.25% |
How to Invest in Nifty 50 Index:
To buy a nifty 50 index, you can either buy all the stocks in their current weightage, or buy an ETF (exchange traded fund). Buying ETF is the same as buying nifty 50 index. Since it’s not very feasible to buy the stocks at the given weightage ETF and Index funds are the best way to invest in the Index.
What are the Nifty 50 ETF’s:
- Nippon India ETF Nifty BeES
- ICICI Prudential Nifty ETF
- UTI Nifty Exchange Traded Fund
- Kotak Nifty ETF
- SBI – ETF Nifty 50
- Aditya Birla Sun Life Nifty ETF
- Edelweiss ETF – Nifty 50
- Reliance ETF Nifty BeES
- Axis Nifty ETF
Nifty 50 Historical Performance:
Nifty 50 Eligibility Criteria:
The following conditions should be met before a stock can be added to the index.
- Market impact cost is the best measure of the liquidity of a stock. It accurately reflects the costs faced when actually trading an index. For a stock to qualify for possible inclusion into the Nifty50, 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
- Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
Eli5(Explain like i am 5):
Imagine nifty 50 as a Pizza. Various ingredients in varying quantities(weightages) are used to make the Pizza. Similarly Nifty 50 index is made up of 50 stocks in varying weightage.