If you are new in the stock market and wondering what is Nifty 50 and how Nifty work, what is the numbers in nifty indicates or how it is calculated then you are on the right place in this article we are going to talk about what is Nifty 50? Company listed in Nifty in 2022, how to trade in Nifty 50 how Nifty is different from Sensex and all your doubts will be clear after reading this article so first.
What is Nifty?
Nifty is one of the two national indexes of stock exchange that is National stock exchange and the index of Bombay stock exchange is Sensex.
The term Nifty coined by National stock exchange on 21st April 1996 at that time 1600 stocks were traded in National stock exchange and the Nifty is combined of top 50 equity stock stated in stock exchange.
These 50 stocks comes from 12 sectors of the Indian economy which includes
|Automotive||Engineering||Metals & Mining|
|Banking/Finance||Food & Beverage||Oil & Gas|
|Consumer durables & non-durables||Media||Telecom|
In 1996 the base value of nifty was considered 1000 and the capital stands at 2.06 trillion rupees now. Nifty 50 is the short form for National stock exchange 50.
Nifty is the combine statically aggregate of stocks of the top 50 companies that are listed in National stock exchange of India.
The weightage of these stocks can be change time to time by NSE or National stock exchange, for example the weightage of Reliance in nifty is today 20% then it can be changed to 13% to do it.
In sample language, Nifty is the statistical aggregate which shows the over all performance of the National stock exchange of India.
List of companies whose stock traded in nifty 2022
The weightage of these stocks can be changed time to time as we tell you earlier if you see these list in 2023 you will see a different weightage or the company can be changed in it.
List of stocks and their weightage, NSE Symbol, Industry in Nifty 50
|Sl No||Company||NSE Symbol||Industry||Weightage|
|1||Reliance Industries Ltd.||RELIANCE||OIL & GAS||11.89%|
|3||HDFC Bank Ltd.||HDFCBANK||FINANCIAL SERVICES||8.43%|
|4||ICICI Bank Ltd.||ICICIBANK||FINANCIAL SERVICES||6.64%|
|5||Housing Development Finance Corporation Ltd.||HDFC||FINANCIAL SERVICES||5.66%|
|6||Tata Consultancy Services Ltd.||TCS||IT||5.07%|
|7||Kotak Mahindra Bank Ltd.||KOTAKBANK||FINANCIAL SERVICES||3.37%|
|9||Larsen & Toubro Ltd.||LT||CONSTRUCTION||2.79%|
|10||AXIS Bank Ltd.||AXISBANK||FINANCIAL SERVICES||2.63%|
|11||Bajaj Finance Ltd.||BAJFINANCE||FINANCIAL SERVICES||2.53%|
|12||State Bank Of India||SBIN||FINANCIAL SERVICES||2.48%|
|13||Hindustan Unilever Ltd.||HINDUNILVR||FMCG||2.39%|
|14||Bharti Airtel Ltd.||BHARTIARTL||TELECOM||2.33%|
|15||Asian Paints||ASIANPAINT||CONSUMER DURABLES||1.82%|
|16||HCL Technologies Ltd.||HCLTECH||IT||1.61%|
|18||Tata Steel Ltd.||TATASTEEL||METALS & MINING||1.38%|
|19||Bajaj Finserv Ltd.||BAJAJFINSV||FINANCIAL SERVICES||1.35%|
|20||Maruti Suzuki India Ltd.||MARUTI||AUTOMOBILE & AUTO COMPONENTS||1.31%|
|21||Sun Pharmaceutical Industries Ltd.||SUNPHARMA||HEALTHCARE||1.29%|
|22||Tech Mahindra Ltd.||TECHM||IT||1.22%|
|24||Hindalco Industries Ltd.||HINDALCO||METALS & MINING||1.09%|
|25||Tata Motors Ltd.||TATAMOTORS||AUTOMOBILE & AUTO COMPONENTS||1.02%|
|26||Mahindra & Mahindra Ltd.||M&M||AUTOMOBILE & AUTO COMPONENTS||1.01%|
|27||UltraTech Cement Ltd.||ULTRACEMCO||CONSTRUCTION MATERIALS||1.00%|
|28||Power Grid Corporation of India Ltd.||POWERGRID||POWER||0.97%|
|29||JSW Steel Ltd.||JSWSTEEL||METALS & MINING||0.93%|
|31||Grasim Industries Ltd.||GRASIM||CONSTRUCTION MATERIALS||0.82%|
|32||Nestle India Ltd.||NESTLEIND||FMCG||0.81%|
|33||IndusInd Bank Ltd.||INDUSINDBK||FINANCIAL SERVICES||0.80%|
|34||Oil And Natural Gas Corporation Ltd.||ONGC||OIL & GAS||0.78%|
|35||Divi’s Laboratories Ltd.||DIVISLAB||HEALTHCARE||0.73%|
|36||Adani Port and Special Economic Zone Ltd.||ADANIPORTS||SERVICES||0.73%|
|38||Dr. Reddy’s Laboratories Ltd.||DRREDDY||HEALTHCARE||0.68%|
|39||HDFC Life Insurance Co.||HDFCLIFE||FINANCIAL SERVICES||0.65%|
|40||SBI Life Insurance Co.||SBILIFE||FINANCIAL SERVICES||0.65%|
|41||Bajaj Auto Ltd.||BAJAJ-AUTO||AUTOMOBILE & AUTO COMPONENTS||0.62%|
|42||Tata Consumer Products Ltd.||TATACONSUM||FMCG||0.61%|
|45||Britannia Industries Ltd.||BRITANNIA||FMCG||0.50%|
|46||Coal India Ltd||COALINDIA||OIL & GAS||0.50%|
|47||Eicher Motors Ltd.||EICHERMOT||AUTOMOBILE & AUTO COMPONENTS||0.45%|
|48||Bharat Petroleum Corp. Ltd.||BPCL||OIL & GAS||0.45%|
|49||Shree Cement Ltd.||SHREECEM||CONSTRUCTION MATERIALS||0.42%|
|50||Hero MotoCorp Ltd.||HEROMOTOCO||AUTOMOBILE & AUTO COMPONENTS||0.39%|
Note-This data is as of March 2022
How Nifty 50 is calculated?
Formula to calculate Nifty 50 is
Nifty 50=Current market value/ base market capital * 1000.
Eligibility criteria for companies to list in nifty 50
These are the eligibility criteria to be followed by stocks for listing in nifty 50-
- Foreign company cannot list in nifty 50 the company must be a domicile of India to be traded in Nifty 50.
- Must be registered in National stock exchange to trade.
- Stock of that company must have high liquidity.
- The average impact cost should be 0.50% or lower than that for a period of 6 months
- The company should be trading with a frequency of 100% during previous 6 months.
- It should have an average free floating Market capitalization.
How to trade in nifty 50?
To trade in nifty 50 you have two options and these are
You can buy or sell future of nifty 50.
And the second option is to buy and sell options of nifty 50.
Nifty V/S Sensex
- Nifty is the combined index of 50 companies listed in National stock exchange of India, while sensex is the combined index of 30 top companies listed in Bombay stock exchange.
- Nifty 50 is new as compared to sensex.
- Directly trade in nifty 50 by buying or selling or by buying or selling options of nifty 50, but you cannot trade in sensex directly.
- Base value of nifty 50 was 1000 when it is started and base value of sensex was 100 when it is started.
- Nifty 50 is managed by National stock exchange of India and sensex is managed by Bombay stock exchange of India.
- Nifty 50 is less volatile as compared to sensex.
- Nifty 50 is national stock 50 and the full form of sensex is sensitive index.
Conclusion-In This article, we discussed what is Nifty 50? Companies and their weightage in nifty 50, how Nifty 50 is calculated, and what are the various eligibility criteria to be traded in nifty 50? How Nifty is different from sensex and how to trade in nifty. You have any questions or any suggestions, let us know in the comment section below, thank you.