The Nifty 50 stock list serves as a crucial indicator of the performance of the top 50 blue-chip companies listed on the National Stock Exchange (NSE), based on market capitalization. This index is recognized as an Indian benchmark, representing the weighted average of these leading companies. The term “Nifty 50” combines two components: Nifty, referring to the National Stock Exchange, and 50, which denotes the collection of the 50 best-performing stocks on this exchange.
Essentially, it functions as a barometer for overall market movement, allowing investors to gauge market trends effectively. The NIFTY 50 is utilized for various purposes, including benchmarking fund portfolios and launching index funds, ETFs, and structured products. Furthermore, it is computed in four currencies: the 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 34.25% to Financial Services, 12.92% to IT, 10.76% to Energy, 8.22% to Consumer Goods, 7.43% to Automobiles, and 3.99% to Healthcare. The NIFTY 50 index is a free-float market capitalization index. It is important to highlight that the Nifty 50 stocks weightage of sectors keeps changing according to the performance of constituent stocks.
Read Also: Nifty PE Ratio – Most Important Points You Need to Know
Nifty 50 Weightage: 2024
The Nifty 50 share list top 10 stocks consisted of the following
| COMPANY NAME | SECTOR | WEIGHTAGE (%) |
| HDFC Bank Ltd. | Financial Services | 12.11 |
| ICICI Bank Ltd. | Financial Services | 8.38 |
| Reliance Industries | Oil Gas & Consumable Fuels | 8.31 |
| Infosys Ltd. | Information Technology | 5.82 |
| ITC Ltd. | Fast Moving Consumer Goods | 4.18 |
| Bharti Airtel Ltd. | Telecommunication | 3.98 |
| Larsen & Toubro Ltd. | Construction | 3.92 |
| Tata Consultancy Services | Information Technology | 3.73 |
| Axis Bank Ltd. | Financial Services | 3.04 |
| State Bank of India | Financial Services | 2.90 |
| Kotak Mahindra Bank | Financial Services | 2.34 |
| Mahindra & Mahindra | Automobile and Auto Components | 2.24 |
| Hindustan Unilever | Fast Moving Consumer Goods | 2.07 |
| Sun Pharmaceutical Industries Ltd. | Healthcare | 1.84 |
| NTPC Ltd. | Power | 1.78 |
| Bajaj Finance Ltd. | Financial Services | 1.77 |
| HCL Technologies | Information Technology | 1.72 |
| Tata Motors Ltd. | Automobile and Auto Components | 1.63 |
| Trent Ltd | Consumer Services | 1.46 |
| Maruti Suzuki India Ltd. | Automobile and Auto Components | 1.34 |
| Power Grid Corporation of India | Power | 1.34 |
| Titan Company Ltd. | Consumer Durables | 1.24 |
| Asian Paints Ltd. | Consumer Durables | 1.22 |
| UltraTech Cement Ltd. | Construction Materials | 1.16 |
| Tata Steel Ltd. | Metals & Mining | 1.13 |
| Bajaj Auto Ltd. | Automobile and Auto Components | 1.00 |
| Oil & Natural Gas Corporation | Oil Gas & Consumable Fuels | 0.95 |
| Coal India Ltd. | Oil Gas & Consumable Fuels | 0.94 |
| Bharat Electronics Limited | Capital Goods | 0.94 |
| Tech Mahindra Ltd. | Information Technology | 0.94 |
| Adani Ports and Special Economic Zone Ltd. | Services | 0.93 |
| Hindalco Industries Ltd. | Metals & Mining | 0.92 |
| Grasim Industries Ltd. | Construction Materials | 0.92 |
| Bajaj Finserv Ltd. | Financial Services | 0.88 |
| JSW Steel Ltd. | Metals & Mining | 0.85 |
| Shriram Finance | Financial Services | 0.81 |
| Cipla Ltd. | Healthcare | 0.78 |
| Nestle India Ltd. | Fast Moving Consumer Goods | 0.75 |
| Wipro Ltd. | Information Technology | 0.72 |
| Dr. Reddy’s Laboratories | Healthcare | 0.71 |
| HDFC Life Insurance Company Ltd. | Financial Services | 0.71 |
| SBI Life Insurance Company | Financial Services | 0.67 |
| Apollo Hospitals Enterprise | Healthcare | 0.65 |
| IndusInd Bank Ltd. | Financial Services | 0.64 |
| Adani Enterprises Ltd. | Metals & Mining | 0.64 |
| Britannia Industries Ltd. | Fast Moving Consumer Goods | 0.62 |
| Eicher Motors Ltd. | Automobile and Auto Components | 0.62 |
| Tata Consumer Products | Fast Moving Consumer Goods | 0.60 |
| Hero MotoCorp Ltd. | Automobile and Auto Components | 0.60 |
| Bharat Petroleum Corporation | Oil Gas & Consumable Fuels | 0.55 |
Top Nifty 50 Companies: How to Invest in Them?
1- Investing directly in individual stocks
One can directly buy stocks in the Nifty 50 index if capital is available. To purchase one share from each of the Nifty 50 constituents, an investor needs to invest approximately INR 1.9 lakhs, which may not be feasible for all retail investors. Furthermore, managing 50 stocks can be extremely challenging.
Read Also: Difference Between FDI and FII Explained in 10 Points
2- Invest through Mutual Fund
A more prudent decision is to select mutual funds that invest pooled money in NIFTY 50 stocks exclusively. One can start investing in a mutual fund tracking NIFTY 50 companies with a minimum SIP of INR 500. Investments can also be made in lump-sum mode.
3- Nifty F&O trading (Futures and Options)
Investors with limited capital can invest in Nifty Futures and Options; however, due to the high leverage in the F&O sector, investors may incur significant losses.
Top Nifty 50 Stocks List 2024: Selection Criteria
A set of guidelines and criteria must be followed to determine which stocks or companies will be included in the Nifty 50 stocks. The following are the criteria for deciding on Nifty 50 companies:
Read Also: Investing in US Stocks Through NSE IFSC
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 observations for a portfolio of INR 10 crores. In simple terms, impact cost is the cost that an investor incurs to execute their buy or sell order against the ideal cost of that stock. Companies with lower impact costs are more likely to exhibit high liquidity than those with higher impact costs.
Liquidity in stock markets refers to a market where large orders can be executed without incurring high transaction costs. The transaction costs here are attributable to a lack of market liquidity rather than fixed costs typically incurred, such as brokerage fees, transaction charges, depository charges, etc. Liquidity is generated by market participants who are constantly seeking buying and selling opportunities; buyers and sellers face higher costs when liquidity is low.
Read Also: Nifty Auto Index – Full list of constituents and their weightages
Nifty 50 Stocks: Float-Adjusted Market Capitalization
The float-adjusted market capitalization is a key factor determining the inclusion of companies in the Nifty 50 index. This metric is calculated by multiplying the stock price by the total number of shares available in the market (free float).
For instance, if a company has 20,000 shares in free float and each share is priced at INR 100, then the company’s free-float market cap would be:
Free Float Market Cap = Number of Shares × Stock Price = 20,000×100 = INR 20 lakh
To qualify for inclusion in the NIFTY 50 index, a company’s average free-float market capitalization must be at least 1.5 times the average free-float market capitalization of the smallest constituent in the index. This ensures that only companies with significant market presence are included.
Nifty 50 Stocks: Trading Frequency
The company’s trading frequency should be 100% in the last six months.
Nifty 50 Stocks List 2024: Futures & Options segment
Only companies permitted to trade in the F&O segment are eligible for inclusion in the Nifty 50 stock list.
Nifty 50 Stocks: Newly-listed Stock
The stocks on the Nifty 50 company list 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 normal eligibility criteria for at least 3 months instead of six months. This relaxation applies only to IPO listings; other listing options such as demergers and takeovers still require a listing history of six months.
Recent Additions to the Nifty 50 Index
As of 30 September 2024, two notable companies were added to the Nifty 50 index:
- Trent Ltd: A leading retail company known for its strong market presence and growth potential.
- Bharat Electronics Ltd: A prominent player in the defense and electronics sector, recognized for its technological advancements and government contracts.
These additions reflect a strategic shift in the index composition, emphasizing companies with robust fundamentals and growth prospects.
Happy Investing!
Latest Content From IPO Central
- HDB Financial Services IPO DRHP Filed For INR 12,500 Crore Public Issue
- Upcoming IPOs in November 2024 – Six Mainboard Offers Expected
- Niva Bupa Health Insurance IPO GMP, Price, Date, Allotment
- Sagility India IPO GMP, Price, Date, Allotment
- NSE IFSC Trading In US Stocks: All You Need To Know
- How Many Companies are Listed in NSE?
- Rosmerta Digital IPO GMP, Review, Price, Allotment
- Top Chemical Companies in India
- Asian Petroproducts Rights Issue Date, Price, Allotment, Entitlement
Nifty 50 Index Frequently Asked Questions
How many stocks are in the Nifty 50 Index?
Nifty 50 index comprises 50 stocks selected based on their free-float market capitalization.
Which sector has the maximum weightage in Nifty 50?
With a weightage of (34.25%), Financial Services is the leading sector in the Nifty 50 index. Information Technology (12.92%) and Energy (10.76%) are the next dominant sectors in Nifty 50 companies list for 2024.
How often is Nifty 50 rebalanced?
Nifty 50 index is re-balanced on a semi-annual basis i.e. every six months. The cut-off dates for rebalance purposes are 31 January and 31 July of each year.
How soon an IPO stock can enter the Nifty 50 Companies List 2024?
Although the index requires a minimum listing history of 6 months, this criterion can be relaxed to 3 months for recently listed stocks through IPO, provided all other requirements are met.
