NIFTY 50
Indian stock market index From Wikipedia, the free encyclopedia
Indian stock market index From Wikipedia, the free encyclopedia
The NIFTY 50 is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.[1][2] Nifty 50 is owned and managed by NSE Indices, which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited.[3][4] NSE Indices had a marketing and licensing agreement with Standard & Poor's for co-branding equity indices until 2013. The Nifty 50 index was launched on 22 April 1996.[1]
| |
 Performance of the NIFTY 50 index between 1990 and 2024 | |
| Foundation | 22 April 1996 |
|---|---|
| Operator | NSE Indices |
| Exchanges | National Stock Exchange of India |
| Trading symbol | ^NSEI |
| Constituents | 50 |
| Type | Large cap |
| Weighting method | Free-float capitalization-weighted |
| Related indices | NIFTY Next 50 NIFTY 500 |
| Website | www |
The NIFTY 50 index ecosystem consists of index funds (both onshore and offshore mutual funds and ETFs), and futures and options at NSE and NSE International Exchange (through GIFT Nifty).[5][6] In 2016, NIFTY 50 was reported by the WFE and FIA as the world's most actively traded index options contract, but it was later overtaken by Nifty Bank.[7][8][9]
The NIFTY 50 index covers 13 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. As of July 2024, NIFTY 50 gives a weightage of 32.76% to financial services including banking, 13.76% to information technology, 12.12% to oil and gas, 8.46% to consumer goods, and 8.22% to automotive.[1]
The NIFTY 50 index is a free float market capitalisation-weighted index.
Stocks are added to the index based on the following criteria:[1]
The index was initially calculated on a full market capitalization methodology. On 26 June 2009, the computation was changed to a free-float methodology.[10] The base period for the NIFTY 50 index is 3 November 1995, which marked the completion of one year of operations of the equity market segment on NSE. The base value of the index has been set at 1000 and a base capital of ₹ 2.06 trillion.[1][11]
The index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 every year and average data for the previous six months from the cut-off date is considered to filter stocks. A notice of 4 weeks from the date of change is given to market participants so that they can prepare for any changes.[1]
The Nifty 50 has the following constituents, as of 28 March 2024.
| Company name | Symbol | Sector[13] | Date added[14] |
|---|---|---|---|
| Adani Enterprises | ADANIENT | Metals & Mining | 30 September 2022 |
| Adani Ports & SEZ | ADANIPORTS | Services | 28 September 2015 |
| Apollo Hospitals | APOLLOHOSP | Healthcare | 31 March 2022 |
| Asian Paints | ASIANPAINT | Consumer Durables | 27 April 2012[lower-alpha 1] |
| Axis Bank | AXISBANK | Financial Services | 27 March 2009 |
| Bajaj Auto | BAJAJ-AUTO | Automobile and Auto Components | 1 October 2010[lower-alpha 2] |
| Bajaj Finance | BAJFINANCE | Financial Services | 29 September 2017 |
| Bajaj Finserv | BAJAJFINSV | Financial Services | 2 April 2018 |
| Bharat Petroleum | BPCL | Oil Gas & Consumable Fuels | 28 October 2002[lower-alpha 3] |
| Bharti Airtel | BHARTIARTL | Telecommunication | 1 March 2004 |
| Britannia Industries | BRITANNIA | Fast Moving Consumer Goods | 29 March 2019[lower-alpha 4] |
| Cipla | CIPLA | Healthcare | 7 October 1998 |
| Coal India | COALINDIA | Oil Gas & Consumable Fuels | 10 October 2011 |
| Divi's Laboratories | DIVISLAB | Healthcare | 25 September 2020 |
| Dr. Reddy's Laboratories | DRREDDY | Healthcare | 1 October 2010[lower-alpha 5] |
| Eicher Motors | EICHERMOT | Automobile and Auto Components | 1 April 2016 |
| Grasim Industries | GRASIM | Construction Materials | 2 April 2018[lower-alpha 6] |
| HCLTech | HCLTECH | Information Technology | 28 October 2002 |
| HDFC Bank | HDFCBANK | Financial Services | 22 April 1996 |
| HDFC Life | HDFCLIFE | Financial Services | 31 July 2020 |
| Hero MotoCorp | HEROMOTOCO | Automobile and Auto Components | 7 October 1998[lower-alpha 7] |
| Hindalco Industries | HINDALCO | Metals & Mining | 22 April 1996 |
| Hindustan Unilever | HINDUNILVR | Fast Moving Consumer Goods | 22 April 1996 |
| ICICI Bank | ICICIBANK | Financial Services | 25 January 2002 |
| IndusInd Bank | INDUSINDBK | Financial Services | 1 April 2013 |
| Infosys | INFY | Information Technology | 7 October 1998 |
| ITC | ITC | Fast Moving Consumer Goods | 22 April 1996 |
| JSW Steel | JSWSTEEL | Metals & Mining | 28 September 2018 |
| Kotak Mahindra Bank | KOTAKBANK | Financial Services | 8 April 2010 |
| Larsen & Toubro | LT | Construction | 10 December 2004[lower-alpha 8] |
| LTIMindtree | LTIM | Information Technology | 13 July 2023 |
| Mahindra & Mahindra | M&M | Automobile and Auto Components | 18 September 1996 |
| Maruti Suzuki | MARUTI | Automobile and Auto Components | 1 March 2004 |
| Nestlé India | NESTLEIND | Fast Moving Consumer Goods | 27 September 2019[lower-alpha 9] |
| NTPC | NTPC | Power | 24 September 2007 |
| Oil and Natural Gas Corporation | ONGC | Oil Gas & Consumable Fuels | 12 April 2004 |
| Power Grid | POWERGRID | Power | 14 March 2008 |
| Reliance Industries | RELIANCE | Oil Gas & Consumable Fuels | 22 April 1996 |
| SBI Life Insurance Company | SBILIFE | Financial Services | 25 September 2020 |
| Shriram Finance | SHRIRAMFIN | Financial Services | 28 March 2024 |
| State Bank of India | SBIN | Financial Services | 22 April 1996 |
| Sun Pharma | SUNPHARMA | Healthcare | 17 January 2002 |
| Tata Consultancy Services | TCS | Information Technology | 25 February 2005 |
| Tata Consumer Products | TATACONSUM | Fast Moving Consumer Goods | 31 March 2021[lower-alpha 10] |
| Tata Motors | TATAMOTORS | Automobile and Auto Components | 22 April 1996 |
| Tata Steel | TATASTEEL | Metals & Mining | 22 April 1996 |
| Tech Mahindra | TECHM | Information Technology | 28 March 2014 |
| Titan Company | TITAN | Consumer Durables | 2 April 2018 |
| UltraTech Cement | ULTRACEMCO | Construction Materials | 28 September 2012 |
| Wipro | WIPRO | Information Technology | 27 September 2013[lower-alpha 11] |
Changes in index constituents since Nifty 50 adopted free float criteria in 2009:
 | This article needs additional citations for verification. (October 2020) |
Following are some of the notable single-day falls of the NIFTY 50 Index.
| Sl. No. | Date | Fall | Probable Reason |
|---|---|---|---|
| 1 | 28 October 1997 | 88.20 points (7.87%) | Investors deserted emerging Asian shares during the Asian Financial Crisis. Crashes also occurred in Thailand, Indonesia, South Korea and Philippines.[45] |
| 2 | 14 May 2004 | 135.10 points (7.87%) | UPA election. |
| 3 | 17 May 2004 | 193.5 points (12.24%) | UPA election. |
| 4 | 21 January 2008 | 496.50 points (8.70%) | Due to the US subprime mortgage crisis. |
| 5 | 22 January 2008 | 309.50 points (5.94%) | Due to the US subprime mortgage crisis. |
| 6 | 16 August 2013 | 234.45 points (4.08%) | Due to depreciation of the Indian rupee.[46][47] |
| 7 | 24 August 2015 | 490.95 points (5.92%) | Driven by the meltdown in the Chinese Stock market.[48] |
| 8 | 24 June 2016 | 181.85 points (2.20%) | Driven by the Brexit Referendum.[49] |
| 9 | 11 November 2016 | 229.45 points (2.69%) | Driven by the Demonetization move by the Indian Government and the 2016 US Election Results.[50] |
| 10 | 2 February 2018 | 256.30 points (2.33%) | Driven by the 2018 Union budget of India and Global breakdown. |
| 11 | 4 October 2018 | 303.20 points (2.39%) | Panic Fall, due to Oil price Increase and rupee fall against US Dollar. |
| 12 | 5 October 2018 | 282.80 points (2.67%) | Panic Fall, due to Oil price Increase and rupee fall against US Dollar. |
| 13 | 8 July 2019 | 252.55 points (2.14%) | Due to Union Budget FY 2019. |
| 15 | 3 September 2019 | 225.35 points (2.04%) | Due to Multiple PSU Bank Merger Announcements.[51][52] |
| 16 | 1 February 2020 | 373.95 points (3.11%) | Driven by the Union Budget FY 2020 and coronavirus pandemic which saw global breakdown a day before the budget.[53] |
| 17 | 9 March 2020 | 538.00 points (4.90%) | Driven by the COVID-19 pandemic.[54][55] |
| 18 | 12 March 2020 | 868.25 points (8.30%) | Driven by the COVID-19 pandemic after WHO declared it a pandemic.[56] |
| 19 | 16 March 2020 | 757.80 points (7.61%) | Driven by the COVID-19 pandemic.[57] |
| 20 | 23 March 2020 | 1135.20 points (12.98%) | Driven by the COVID-19 pandemic.[58] |
| 21 | 11 June 2020 | 214.15 points (2.12%) | Driven by the weak economic outlook as predicted by the United States Federal Reserve.[59][60] |
| 22 | 26 Feb 2021 | 568.20 points (3.76%) | Global breakdown.[citation needed] |
| 23 | 12 Apr 2021 | 524.05 points (3.53%) | Rise in daily COVID cases, speculation of complete lockdown in the Maharashtra state. |
| 24 | 26 Nov 2021 | 509.80 points (2.91%) | New coronavirus strain found in South Africa. |
| 25 | 20 Dec 2021 | 371.00 points (2.18%) | |
| 26 | 24 Jan 2022 | 468.05 points (2.66%) | Increasing geopolitical tensions and rising inflation (investors lost 19.33 lakh crore in market in a week). |
| 27 | 14 Feb 2022 | 531.95 points (3.06%) | Russia-Ukraine tensions, US fed aggressive statements on rate hike and ABG shipyard fraud case.[61] |
| 28 | 17 January 2024 | 461 points (2.09%) | Its largest constituent by weightage (HDFC Bank at 11%) fell by more than 6% due to a poor earnings report.[62] |
| 29 | 4 June 2024 | 1379.40 points (5.93%) | The incumbent government secured fewer seats than was predicted by the 2024 Indian general elections exit polls.[63] |
 |
Following are some of the notable single-day gains of the NIFTY 50 Index.
| Sl. No. | Date | High | Probable reason |
|---|---|---|---|
| 1 | 18 May 2009 | 651.50 points (17.74%) | Ovewhelmingly upbeat results of the 2009 Indian general election; caused multiple trading curbs. |
| 2 | 20 May 2019 | 421.10 points (3.69%) | Exit Polls of 2019 General elections. |
| 3 | 23 May 2019 | 300.90 points (2.49%) | Results of the 2019 General Elections in which NDA alliance wins. |
| 4 | 8 August 2019 | 176.95 points (1.63%) | FPI surcharge rollback.[64] |
| 5 | 26 August 2019 | 234.45 points (2.16%) | Relief measures, likely US-China trade talks begin.[65] |
| 6 | 20 September 2019 | 655.45 points (6.12%) | Indian FM announced a cut in the corporate tax rate for domestic companies and new domestic manufacturing companies.[66] |
| 7 | 23 September 2019 | 420.65 points (3.73%) | Following a corporate tax cut in India. |
| 8 | 7 April 2020 | 708.40 points (8.76%) | Positive news that infection numbers were peaking in some of the worst affected areas around the world.[67] |
| 9 | 1 Feb 2021 | 646.60 points (4.74%) | Union budget day by Nirmala Sitharaman.[68] |
| 10 | 2 Feb 2021 | 366.65 points (2.57%) | Union budget reaction. |
| 11 | 15 Feb 2022 | 509.65 points (3.03%) | Russia withdraws troops from Ukraine border.[69] |
| 12 | 3 June 2024 | 733.20 points (3.25%) | Exit polls predicted a win for the incumbent government in the 2024 Indian general elections[70] |
| 13 | 5 June 2024 | 735.87 points (3.36%) | 2024 Indian general election[71] |
The following table shows the annual development of the NIFTY 50 since 2000.[72][73] The historical daily returns data can be accessed from the NSE website.[74]
| Year | Closing level | Change in Index in Points |
Change in Index in % |
|---|---|---|---|
| 2000 | 1,263.55 | −216.90 | −14.65 |
| 2001 | 1,059.05 | −204.50 | −13.94 |
| 2002 | 1,093.50 | 34.45 | 3.25 |
| 2003 | 1,879.75 | 786.25 | 71.90 |
| 2004 | 2,080.50 | 200.75 | 10.68 |
| 2005 | 2,836.55 | 756.05 | 36.34 |
| 2006 | 3,966.40 | 1,129.85 | 39.83 |
| 2007 | 6,138.60 | 2,172.20 | 54.77 |
| 2008 | 2,959.15 | −3,179.45 | −51.79 |
| 2009 | 5,201.05 | 2,241.90 | 75.76 |
| 2010 | 6,134.50 | 933.45 | 17.95 |
| 2011 | 4,624.30 | −1,510.20 | −24.62 |
| 2012 | 5,905.10 | 1,280.80 | 27.70 |
| 2013 | 6,304.00 | 398.90 | 6.76 |
| 2014 | 8,282.70 | 1,978.70 | 31.39 |
| 2015 | 7,964.35 | −336.35 | −4.06 |
| 2016 | 8,185.80 | 239.45 | 3.01 |
| 2017 | 10,530.70 | 2,344.90 | 28.65 |
| 2018 | 10,862.55 | 331.85 | 3.15 |
| 2019 | 12,168.45 | 1,305.90 | 12.02 |
| 2020 | 13,981.75 | 1,813.30 | 14.90 |
| 2021 | 17,354.05 | 3,372.30 | 24.12 |
| 2022 | 18,105.30 | 751.25 | 4.32 |
| 2023 | 21,731.40 | 3621.1 | 20.02 |
Trading in futures and options on the NIFTY 50 is offered by the NSE and NSE International Exchange (NSEIX).[75][76] NSE offers weekly as well as monthly expiry options. It is the second most traded index option in the world after Nifty Bank.[77]
NSE allows international traders to trade on the NIFTY 50 by GIFT NIFTY. The same index had previously operated under the name SGX Nifty, and was traded on the Singapore Exchange. It was rebranded to GIFT Nifty on 3 July 2023 and trading was moved to the NSE International Exchange (NSEIX) situated in GIFT City, Gandhinagar.[78][6][79] The CEO of NSEIX called it a watershed moment since it was the first time India got back an international contract which had previously been exported.[79][78]
NIFTY Next 50, also called NIFTY Junior, is an index of 50 companies whose free float market capitalisation comes after that of the companies in NIFTY 50. NIFTY Next 50 constituents are thus potential candidates for future inclusion in NIFTY 50.[80]
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