Nifty50

  The NIFTY Next 50 is an index for companies on the National Stock Exchange of India. It represents the next rung of liquid securities after the NIFTY 50. It consists of 50 companies representing approximately 10% of the traded value of all stocks on the National Stock Exchange of India. The NIFTY Next 50 is owned and operated by India Index Services and Products Ltd. It is quoted using the symbol NSMIDCP.


The NIFTY Next 50 and the NIFTY 50 together comprise the NIFTY 100, which represents the 100 most liquid stocks traded on the National Stock Exchange of India.





What is the importance of NIFTY 50?
The NIFTY 50 covers major sectors of the Indian economy and offers investment managers exposure to the Indian market in one efficient portfolio. The Index has been trading since April 1996 and is well suited for benchmarking, index funds and index-based derivatives.

Introduction:
The NIFTY 50 is the flagship index on the National Stock Exchange of India Ltd. (NSE). The Index
tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian securities. It
includes 50 of the approximately 1600 companies traded (listed & traded and not listed but permitted to
trade) on NSE, captures approximately 65% of its float-adjusted market capitalization and is a true
reflection of the Indian stock market.
The NIFTY 50 covers major sectors of the Indian economy and offers investment managers exposure to
the Indian market in one efficient portfolio. The Index has been trading since April 1996 and is well
suited for benchmarking, index funds and index-based derivatives.
The NIFTY 50 is owned and managed by NSE Indices Limited (formerly known as India Index Services
& Products Limited-IISL), India’s first specialized company focused on an index as a core product.



Market Representation. The NIFTY 50 stocks represent about 65% of the total float-adjusted market
capitalization of the National Stock Exchange (NSE).

Liquidity. 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 inclusion in the NIFTY 50, it has to
reliably have market impact cost below 0.50 %, when doing NIFTY 50 trades of Rupees (Rs) 10 crores.


Eligibility Criteria

Domicile:
The company must be domiciled in India and traded (listed & traded and not listed but permitted to trade)
at the National Stock Exchange (NSE).

Eligible Securities:
Constituents of NIFTY 100 index that are available for trading in NSE’s Futures & Options segment are
eligible for inclusion in the NIFTY 50 index.

Differential Voting Rights:
Equity securities with Differential Voting Rights (DVR) are eligible for inclusion in the index subject to
fulfilment of criteria given below:
 Market capitalisation criteria is measured at a company level by aggregating the market capitalisation
of individual class of security meeting the liquidity criteria for the respective index
 Free float of DVR equity class share should be at least 10% of free-float market capitalization of the
company (voting equity class share and DVR equity class share) and 100% free-float market
capitalization of last security in respective index
 It should meet liquidity criteria applicable for the respective index
 Upon inclusion of DVRs in index, the index may not have fixed number of securities. For example, if
DVR of an existing NIFTY 50 constituent is included in NIFTY 50, the NIFTY index will have 51
securities but continue to have 50 companies
 It is possible that the DVR is eligible for inclusion in the index whereas the full voting rights security
class is ineligible. In such scenario, the DVRs shall be included in the index irrespective of whether full
voting rights share class is part of index.

Derivatives:
Trading in call and put options on the Nifty 50 are offered by the NSE. The exchange offers weekly as well as monthly expiry.






                     Current Nifty 50 Stocks:

Sr.No. Company Name              Sector                     Weightage

1     Reliance Industries Ltd. Petroleum Products           11.48%
2        HDFC Bank Ltd.           Banks                            8.34%
3     ICICI Bank Ltd.                   Banks                            7.55%
4     Infosys Limited                It - Software                    7.52%
5 Housing Development Fin. Corp. Ltd.£ Finance            5.71%
6 Tata Consultancy Services Ltd. It - Software            4.54%
7 Kotak Mahindra Bank Limited Banks                    3.53%
8 ITC Ltd. Diversified Fmcg                                            3.52%
9 Hindustan Unilever Ltd. Diversified  Fmcg                    3.12%
10 Larsen and Toubro Ltd.         Construction                    2.9%
11 State Bank of India Banks                                            2.69%
12 Bajaj Finance Ltd.           Finance                                    2.55%
13 Axis Bank Ltd.           Banks                                    2.54%
14 Bharti Airtel Ltd. Telecom - Services                            2.17%
15 Asian Paints Limited Consumer Durables            1.99%
16 Maruti Suzuki India Limited Automobiles                    1.55%
17 Mahindra & Mahindra Ltd. Automobiles                    1.48%
18 Sun Pharmaceutical Industries Ltd. Pharmaceuticals & Biotechnology                                                                     1.35%

19 HCL Technologies Ltd. It - Software                             1.33%
20 Titan Company Ltd. Consumer Durables             1.3%
21 Bajaj Finserv Ltd. Finance                                             1.21%
22 Tata Steel Ltd. Ferrous Metals                                     1.15%
23 Tata Motors Ltd. Automobiles                                     1.07%
24 UltraTech Cement Limited Cement & Cement Products 1%
25 Power Grid Corporation of India Ltd. Power             0.97%
26 NTPC Limited   Power                                             0.96%
27 Nestle India Ltd. Food Products                                     0.92%
28 Indusind Bank Ltd. Banks                                             0.9%
29 Tech Mahindra Ltd. It - Software                             0.88%
30 Wipro Ltd. It - Software                                             0.83%
31 JSW Steel Ltd. Ferrous Metals                             0.81%
32 Hindalco Industries Ltd. Non - Ferrous Metals             0.8%
33 Grasim Industries Ltd. Cement & Cement Products     0.78%
34 SBI Life Insurance Company Ltd. Insurance             0.77%
35 Adani Ports & Special Economic Zone Transport Infrastructure                                                                             0.73%
36 Cipla Ltd. Pharmaceuticals & Biotechnology             0.7%
37 Oil & Natural Gas Corporation Ltd. Oil                     0.69%
38 Bajaj Auto Limited Automobiles                                     0.68%
39 HDFC Life Insurance Company Limite Insurance     0.68%

40 Dr Reddys Laboratories Ltd. Pharmaceuticals &              Biotechnology                                                                   0.66% 41 Divis Laboratories Ltd. Pharmaceuticals & Biotechnology                                                                                                          0.65%

42 Tata Consumer Products Limited Agricultural Food & Other Products                                                                                    0.64%
43 Britannia Industries Ltd. Food Products                            0.61%
44 Coal India Ltd. Consumable Fuels                            0.59%
45 Apollo Hospitals Enterprise Ltd. Healthcare Services 0.57%     

46 Eicher Motors Ltd. Automobiles                                  0.57%
47 UPL Ltd. Fertilizers & Agrochemicals                          0.53%
48 Hero MotoCorp Ltd. Automobiles                          0.49%
49 Bharat Petroleum Corporation Ltd. Petroleum Products                                                                                                          0.42%
50 Shree Cement Ltd. Cement & Cement Products          0.36%.


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