What is Nifty 50? How to invest money in Nifty 50?

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

AutomotiveEngineeringMetals & Mining
Banking/FinanceFood & BeverageOil & Gas
Cement/ConstructionTechnologyPharmaceuticals
ChemicalsManufacturingRetail/Real Estate
Consumer durables & non-durablesMediaTelecom

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 NoCompanyNSE SymbolIndustryWeightage
1Reliance Industries Ltd.RELIANCEOIL & GAS11.89%
2Infosys Ltd.INFYIT9.13%
3HDFC Bank Ltd.HDFCBANKFINANCIAL SERVICES8.43%
4ICICI Bank Ltd.ICICIBANKFINANCIAL SERVICES6.64%
5Housing Development Finance Corporation Ltd.HDFCFINANCIAL SERVICES5.66%
6Tata Consultancy Services Ltd.TCSIT5.07%
7Kotak Mahindra Bank Ltd.KOTAKBANKFINANCIAL SERVICES3.37%
8ITC Ltd.ITCFMCG2.87%
9Larsen & Toubro Ltd.LTCONSTRUCTION2.79%
10AXIS Bank Ltd.AXISBANKFINANCIAL SERVICES2.63%
11Bajaj Finance Ltd.BAJFINANCEFINANCIAL SERVICES2.53%
12State Bank Of IndiaSBINFINANCIAL SERVICES2.48%
13Hindustan Unilever Ltd.HINDUNILVRFMCG2.39%
14Bharti Airtel Ltd.BHARTIARTLTELECOM2.33%
15Asian PaintsASIANPAINTCONSUMER DURABLES1.82%
16HCL Technologies Ltd.HCLTECHIT1.61%
17TitanTITANCONSUMER DURABLES1.38%
18Tata Steel Ltd.TATASTEELMETALS & MINING1.38%
19Bajaj Finserv Ltd.BAJAJFINSVFINANCIAL SERVICES1.35%
20Maruti Suzuki India Ltd.MARUTIAUTOMOBILE & AUTO COMPONENTS1.31%
21Sun Pharmaceutical Industries Ltd.SUNPHARMAHEALTHCARE1.29%
22Tech Mahindra Ltd.TECHMIT1.22%
23Wipro Ltd.WIPROIT1.15%
24Hindalco Industries Ltd.HINDALCOMETALS & MINING1.09%
25Tata Motors Ltd.TATAMOTORSAUTOMOBILE & AUTO COMPONENTS1.02%
26Mahindra & Mahindra Ltd.M&MAUTOMOBILE & AUTO COMPONENTS1.01%
27UltraTech Cement Ltd.ULTRACEMCOCONSTRUCTION MATERIALS1.00%
28Power Grid Corporation of India Ltd.POWERGRIDPOWER0.97%
29JSW Steel Ltd.JSWSTEELMETALS & MINING0.93%
30NTPC Ltd.NTPCPOWER0.84%
31Grasim Industries Ltd.GRASIMCONSTRUCTION MATERIALS0.82%
32Nestle India Ltd.NESTLEINDFMCG0.81%
33IndusInd Bank Ltd.INDUSINDBKFINANCIAL SERVICES0.80%
34Oil And Natural Gas Corporation Ltd.ONGCOIL & GAS0.78%
35Divi’s Laboratories Ltd.DIVISLABHEALTHCARE0.73%
36Adani Port and Special Economic Zone Ltd.ADANIPORTSSERVICES0.73%
37Cipla Ltd.CIPLAHEALTHCARE0.69%
38Dr. Reddy’s Laboratories Ltd.DRREDDYHEALTHCARE0.68%
39HDFC Life Insurance Co.HDFCLIFEFINANCIAL SERVICES0.65%
40SBI Life Insurance Co.SBILIFEFINANCIAL SERVICES0.65%
41Bajaj Auto Ltd.BAJAJ-AUTOAUTOMOBILE & AUTO COMPONENTS0.62%
42Tata Consumer Products Ltd.TATACONSUMFMCG0.61%
43Appolo HospitalAPPOLOHOSPHEALTHCARE0.60%
44UPL Ltd.UPLCHEMICALS0.55%
45Britannia Industries Ltd.BRITANNIAFMCG0.50%
46Coal India LtdCOALINDIAOIL & GAS0.50%
47Eicher Motors Ltd.EICHERMOTAUTOMOBILE & AUTO COMPONENTS0.45%
48Bharat Petroleum Corp. Ltd.BPCLOIL & GAS0.45%
49Shree Cement Ltd.SHREECEMCONSTRUCTION MATERIALS0.42%
50Hero MotoCorp Ltd.HEROMOTOCOAUTOMOBILE & AUTO COMPONENTS0.39%

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.

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