The Nifty 50 stock list tracks the performance of the top 50 blue-chip companies on the National Stock Exchange (NSE) based on market capitalization. The Nifty 50 is an Indian benchmark index. It represents the weighted average of the top 50 NSE-listed companies. Nifty 50 is formed by combining two terms: Nifty, which refers to the National Stock Exchange, and 50, a collection of the National Stock Exchange’s 50 best-performing stocks.
Essentially, it serves as a barometer for the overall movement of the stock market. NIFTY 50 can be used for a variety of purposes such as benchmarking fund portfolios, launching index funds, ETFs and structured products. NIFTY 50 is computed in four currencies namely Indian Rupee (INR), US Dollar (USD), Australian Dollar (AUD) and Canadian Dollar (CAD).
Nifty 50 Sector Weightage
The NIFTY 50 Index gives a weightage of 36.96% to financial services, 13.41% to Energy, 14.22% to IT, 8.75% to consumer goods, 6% to Automobiles and 3.78% to Healthcare. The NIFTY 50 index is a free-float market capitalization index. It is important to highlight that Nifty 50 weightage of sectors keep changing according to the performance of constituent stocks.
Nifty 50 Companies Weightage: 2022
The Nifty 50 share list top 10 stocks consisted of the following
|SR NO.||COMPANY NAME||STOCK SYMBOL||SECTOR||WEIGHTAGE|
|1||RELIANCE INDUSTRIES LTD||RELIANCE||PETROLEUM PRODUCTS||11.70%|
|2||HDFC BANK LTD||HDFCBANK||BANKS||8.61%|
|4||HOUSING DVELOPMENT FIN. CORP. LTD||HDFC||FINIANCE||5.81|
|5||ICICI BANK LTD.||ICICIBANK||BANKS||7.93%|
|6||TATA CONSULTANCY SERVICES LTD||TCS||SOFTWARE||4.24%|
|7||KOTAK MAHINDRA BANK LTD||KOTAKBANK||BANKS||3.55%|
|8||HINDUSTAN UNILEVER LTD||HINDUNILVR||CONSUMER NON-DURABLES||3.03%|
|9||AXIS BANK LTD||AXIS BANK||BANKS||2.89%|
|10||LARSEN TOURBO LTD||LT||CONSTRUCTION PROJECTS||3.08%|
|11||ITC LIMITED||ITC||CONSUMER NON-DURABLES||3.64%|
|12||STATE BANK OF INDIA||SBIN||BANKS||2.66%|
|13||BAJAJ FIANANCE LTD||BAJFINANCE||FINANCE||2.30%|
|14||ASIAN PAINTS LIMITED||ASIAN PAINTS||CONSUMER NON-DURABLES||1.82%|
|15||BHARTI AIRTEL LTD||BHARTIAIRTL||TELECOM- SERVICES||2.27%|
|16||HCL TECHNOLOGIES LTD||HCLTECH||SOFTWARE||1.30%|
|17||MARUTI SUZUKI INDIA LTD||MARUTI||AUTO||1.54%|
|18||TATA STEEL LTD||TATASTEEL||FERROUS METALS||1.13%|
|20||ULTRA TECH CEMENT LIMITED||ULTRACEMCO||CEMENT AND CEMENT PRODUCTS||1.02%|
|21||MAHINDR & MAHINDRA LTD||M&M||AUTO||1.53%|
|22||BAJAJ FINSERV LTD||BAJAJFINSV||INSURANCE||1.20%|
|23||SUN PHARMACEUTICAL INDUSTRIES LTD||SUNPHARMA||PHARMACEUTICALS||1.26%|
|24||TITAN COMPANY LTD||TITAN||CONSUMER DURABLES||1.30%|
|25||TECH MAHINDRA LTD||TECHM||SOFTWARE||0.87%|
|26||DR. REDDYS LABORATORIES LTD||DRREDDY||PHARMACEUTICALS||0.67%|
|27||JSW STEEL LTD||JSWSTEEL||FERROUS METALS||0.75%|
|28||NESTLE INDIA LTD||NESTLEIND||CONSUMER NON-DURABLES||0.91%|
|29||INDUSIND BANK LTD||INDUSBNK||BANKS||0.80%|
|30||TATA MOTORS LTD||TATAMOTORS||AUTO||1.03%|
|31||POWER GRID CORPORATION OF INDIA LTD||POWERGRID||POWER||1.01%|
|32||GRASIM INDUSTRIES LTD||GRASIM||CEMENT AND CEMENT PRODUCTS||0.78%|
|33||HDFC LIFE INSURANCE COMPANY LTD||HDFCLIFE||INSURANCE||0.78%|
|34||DIVIS LABORATRIES LTD||DIVISLAB||PHARMACEUTICALS||0.60%|
|36||HINDALCO INDUSTRIES LTD||HINDALCO||NON-FERROUS METALS||0.77%|
|37||BAJAJ AUTO LIMITED||BAJAJ-AUTO||AUTO||0.61%|
|38||ADANI PORTS & SPECIAL ECONOMIC ZONE||ADANIPORTS||TRANSPORTATION||0.90%|
|40||TATA CONSUMER PRODUCTS LIMITED||TATACONSUM||CONSUMER NON-DURABLES||0.66%|
|41||SBI LIFE INSURANCE COMPANY LTD||SBILIFE||INSURANCE||0.76%|
|42||BHARAT PETROLEUM CORPORATION LTD||BPCL||PETROLEUM PRODUCTS||0.43%|
|44||BRITANNIA INDUSTRIES LTD||BRITANNIA||CONSUMER NON-DURABLES||0.58%|
|45||OIL & NATURAL GAS LIMITED||ONGC||OIL||0.66%|
|46||EICHER MOTORS LTD||EICHERMOTO||AUTO||0.58%|
|47||HERO MOTOCORP LTD||HEROMOTOCO||AUTO||0.48%|
|48||SHREE CEMENT LTD||SHREECEM||CEMENT&CEMENT PRODUCTS||0.30%|
|49||COAL INDIA LTD||COALINDIA||MINERALS\MINNING||0.66%|
|50||APPOLO HOSPITALS ENTERPRISES LTD||APPOLOHOSP||PHARMACEUTICALS||0.90%|
Top Nifty 50 Companies: How to Invest in Them?
1- Investing directly in individual stock
One can directly buy stocks in the Nifty 50 index if capital availability is there. To purchase one share from each of the Nifty 50, the investor needs to invest approximately INR1.9 lakhs and not all retail investors have this much money to invest. Furthermore, managing 50 stocks can be extremely difficult.
2- Invest through Mutual Fund
A better decision is to pick mutual funds that invest the pool money in NIFTY 50 stocks only. One can start investing in a mutual fund tracking NIFTY 50 companies with a minimum SIP of INR 500. Investment can also be made in lumpsum mode.
3- Nifty F&O trading (Futures and Options)
Investors with limited capital can invest in Nifty Futures and Options, but because of the high leverage in the F&O sector, investors may incur significant losses.
Top Nifty 50 Companies list 2022: Selection Criteria
To determine which stocks or companies will be included in the Nifty 50 stocks, a set of guidelines and criteria need to be followed. The following are the criteria for deciding on Nifty 50 companies:
Nifty 50 Stocks: Liquidity
the Nifty 50 stocks must have traded at an average impact cost of 0.50% or less during the last six months for 90% of the observations for a portfolio of INR10 crores. In simple terms, impact cost is the cost that an investor must incur in order to execute his buy or sell order against the ideal cost of that stock. Companies with lower impact costs are more likely to have high liquidity than companies with higher impact costs.
Liquidity in the context of stock markets means a market where large orders can be executed without incurring a high transaction cost. The transaction cost referred to here is the cost attributable to a lack of market liquidity rather than the fixed costs typically incurred such as brokerage, transaction charges, depository charges, and so on. Liquidity is generated by market buyers and sellers who are constantly looking for buying and selling opportunities. Buyers and sellers pay a high price when there is a lack of liquidity.
Nifty 50 Stocks: Float-Adjusted Market Capitalization
The NSE 50 list of companies is determined by their free-float market capitalization. Nifty 50 stocks’ free-float market cap is calculated by multiplying its stock price by the total number of shares available in the market. For example, if a company has 20,000 shares in free float and the price of each is INR100, the company’s free-float market cap is INR20 lakh (20,000 * 100). Companies will be eligible for inclusion in the NIFTY 50 stocks index provided the average free-float market capitalization is at least 1.5 times the average free-float market capitalization of the smallest constituent in the index.
Nifty 50 Stocks: Trading Frequency
The company’s trading frequency should be 100% in the last six months.
Nifty 50 Stocks: Futures & Options segment
Only companies that are permitted to trade in the F&O segment are eligible to be included in the Nifty 50 stock list.
Nifty 50 Stocks: Newly-listed Stock
The Nifty 50 company list stocks should have a listing history of 6 months. If a company files for an IPO, it will be eligible for inclusion in the index if it meets the normal eligibility criteria for the index for a 3-month period rather than a 6-month period. This relaxation is only for IPO listing and the listing history remains 6 months for other listing options such as demergers and takeovers.