Nifty 50

23341.55
As on 21 Nov 2024 11:54 AM

Nifty 50 Performance

  • Open

    23,488.45

  • High

    23,507.30

  • Low

    23,263.15

  • Prev Close

    23,518.50

  • Dividend Yeild

    1.36%

  • P/E

    21.65

Nifty50

Nifty 50 Chart

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Constituent Companies

Nifty 50 Sector Performance

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Under Performing

What is the Nifty 50 Index?

Nifty 50 is a benchmark index of the National Stock Exchange of India which consists of top 50 blue chip companies listed on National Stock Exchange of India Ltd. (NSE). The 50 stocks are selected on the basis of liquidity and market capitalization. The Nifty 50 is an important tool for investors looking to invest in India's stock market. Nifty 50 consists of companies belonging to major sectors of the Indian economy and insight into the performance of the Indian economy and provides investors with valuable information about which sectors to invest in. The index is calculated based on free-float market capitalization, which means that only companies with a high float adjusted market cap are selected. Additionally, the Nifty 50 also has a diverse selection of stocks from various sectors such as banking, automotive, energy, and IT.

By tracking the movements of this index, investors can gain insight into the trends and performance of Indian companies on a larger scale. The Nifty 50 also serves as an indicator of investor sentiment, allowing them to gauge how markets may perform in the future.

How is the Nifty 50 Index Value Calculated?

The Nifty 50 Index value is calculated using the free-float market capitalization method, which considers the market value of a company's shares that are freely available for trading in the market. The formula involves multiplying the equity's price by the number of shares available for trading and then summing this product for all 50 companies in the index. 

This total market cap is then divided by a divisor, a unique number derived by the index to maintain continuity and reflect corporate actions like stock splits, rights issuances, etc. The index value changes throughout the trading day as the prices of the underlying stocks fluctuate.

Nifty 50 Scrip Selection Criteria

The Nifty 50 is selected based on the following criteria:

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

Only the shares of Nifty 100 index companies which are available for trading in NSE’s Futures & Options segment can be included in the Nifty 50 index.

A security is only eligible for the index if, over the course of six months, it traded at an average cost impact of 0.50% or less for an ₹10 cr portfolio for 90% of observations.

Companies must have an average free-float market capitalization that is about 1.5X the average free-float market capitalization of the smallest stock in the index.

A company that issues an initial public offering (IPO) may be eligible for inclusion in the index if it meets the standard eligibility requirements for the index, such as impact cost and float-adjusted market capitalization over a three-month period instead of a six-month period.

How does Nifty 50 work?

The Nifty 50 is a stock market index representing the weighted average of the 50 most significant and liquid stocks listed on the National Stock Exchange (NSE) of India. It works by using a free-float market capitalization method, meaning the index's value reflects the total market value of the constituent stocks relative to a particular base period. 

The index composition is reviewed semi-annually, ensuring it accurately represents the current economic landscape. This benchmark is crucial for investors to gauge the overall market performance and to compare individual portfolios against a standard metric.
 

What are the Benefits of Investing in the Nifty 50? 

● Nifty 50 is a combination of financially stable companies from different sectors. Therefore, it has the potential to yield high returns. 
● Typically, Nifty is subject to low volatility. Nifty 50 companies are resilient and can survive short-term fluctuations. The pace of recovery from bear markets is fast. 
● With index mutual funds, you can invest in the markets periodically and avoid frequent portfolio rebalancing.  
 

What is the History of the Nifty 50?

SENSEX, the Bombay Stock Exchange index, dominated the financial markets until the introduction of Nifty. In April 1996, trading in NIFTY commenced and served as a standard for index funds and index-based derivatives. 

India Index Services and Products Limited (IISL) owns and manages the Nifty index. IISL is the first to concentrate on an index as its core product in India. 

In June 2000, the NSE introduced products with index futures. The Nifty 50 share price is the source for the futures contracts. In 2001, the exchange launched index options.

In July 2017, Nifty breached the 10,000 level. The Nifty chart moved from 1,000 to 10,000 in twenty-one years. In June 2024, Nifty reached a high of 23,337.90. 
 

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Faqs

How To Invest in Nifty 50 Stocks?

You may invest in Nifty 50 stocks as below:

1.Invest directly in Nifty 50 shares in the same proportion as the index. 
2.Investment in an index mutual fund based on Nifty 50. An index fund allows you to invest in a customized portfolio managed by specialists. 
 

What are Nifty 50 stocks?

Nifty 50 stocks represent the 50 most significant and liquid stocks on the National Stock Exchange of India, serving as a benchmark index for Indian equity markets. They span various sectors, reflecting the overall market conditions.
 

Can you trade shares on Nifty 50?

Yes, you can trade shares on the Nifty 50. This index comprises publicly listed companies, and their shares can be bought and sold on the NSE during trading hours.
 

In which year was the Nifty 50 Index launched?

The Nifty 50 Index was launched in 1996. It was introduced by the National Stock Exchange of India as a benchmark stock market index representing the weighted average of 50 of the largest Indian companies listed on the exchange.
 

Can we buy Nifty 50 and sell it tomorrow?

Yes, you can buy Nifty 50 futures or options today and sell them tomorrow. This is a common trading strategy, allowing traders to capitalize on short-term movements in the index.
 

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