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The Nifty 50 index is a well-diversified 50 companies index reflecting overall market conditions. Nifty 50 Index is computed using the free float market capitalization method.
Nifty 50 is a Benchmark Index of the National Stocks Exchange (NSE) that represents the overall performance of the Indian stock market used by Investors to understand the performance of the Indian stock market on the Global Level.
The Index consists of 50 stocks from 13 key sectors whose weightage is determined by their Free Float Market Capitalization.
Top 10 Nifty 50 Stocks by Their Weightage
| Stocks Name | Weightage (%) | Market Cap (Cr) |
|---|---|---|
| HDFC Bank | 11.02 | 12,70,036 |
| Reliance Industries | 9.13 | 19,92,160 |
| ICICI Bank | 7.73 | 8,80,867 |
| Infosys | 6.27 | 8,07,300 |
| ITC | 4.14 | 6,42,532 |
| TCS | 4.12 | 16,36,190 |
| Larsen & Toubro | 3.87 | 4,96,889 |
| Bharti Airtel | 3.80 | 9,78,612 |
| Axis Bank | 2.29 | 3,76,555 |
| SBI | 2.80 | 7,05,535 |
| 55.17% | 97,86,676 |
Fundamentals of Nifty 50
- P/E – 23.47
- PB – 4.26
- Div. Yield – 1.21%
How the Stocks are Selected in Nifty50
Here are the Eligibility criteria for the Stocks to be part of Nifty 50 as described by NSE.
- 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 the F&O segment are only eligible to be constituents of the index.
- The Company should have a minimum listing history of 1 month as on the cutoff date.
Now,
If you follow the Nifty50 Index then you also need to know the sector representations in the Nifty50.
Nifty50 Sector Weightage
| Sectors | Weightage (%) |
|---|---|
| Financial Services | 32.60 |
| Information Technology | 14.17 |
| Oil, Gas & Consumable Fuels | 11.97 |
| FMCG | 8.34 |
| Automobile & Auto Components | 8.31 |
| Healthcare | 4.50 |
| Construction | 3.87 |
| Telecommunication | 3.80 |
| Metals & Mining | 3.55 |
| Power | 3.14 |
| Consumer Durables | 2.59 |
| Construction Materials | 2.06 |
| Services | 0.97 |
| Total | 100% |
Other Indices Stocks Weightage,
Disclaimer: All information contained herewith is provided for reference purposes only. CupofGlory.com takes this data from a reliable source named niftyindices.com However, Cupofglory.com makes no warranty or representation as to the accuracy, completeness, or reliability of any of the information contained herein and disclaims any liability whatsoever to any person for any damage or loss of any nature arising from or as a result of reliance on any of the information provided herein. The information contained in this article is not intended to provide any professional advice.
