The NIFTY 50 is a benchmark Indianstock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.[1] It is one of the two main stock indices used in India, the other being the BSE SENSEX.[2]
Nifty 50 is owned and managed by NSE Indices (previously known as India Index Services & Products Limited), 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,[5] and is one of the many stock indices of Nifty.
The NIFTY 50 index has shaped up to be the largest single financial product in India, with an ecosystem consisting of exchange-traded funds (onshore and offshore), and futures and options at NSE and SGX.[6][7] NIFTY 50 is the world's most actively traded contract. WFE, IOM and FIA surveys endorse NSE's leadership position.[8][9]
The NIFTY 50 index covers 13 sectors (as on 30 April 2021) of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. Between 2008 & 2012, the NIFTY 50 index's share of NSE's market capitalisation fell from 65% to 29%[10] due to the rise of sectoral indices like NIFTY Bank, NIFTY IT, NIFTY Pharma, NIFTY SERV SECTOR, NIFTY Next 50, etc. The NIFTY 50 Index gives a weightage of 39.47% to financial services, 15.31% to Energy, 13.01% to IT, 12.38% to consumer goods, 6.11% to Automobiles and 0% to the agricultural sector.[11]
The NIFTY 50 index is a free float market capitalisation weighted index. The index was initially calculated on a full market capitalisation methodology. On 26 June 2009, the computation was changed to a free-float methodology.[12] The base period for the NIFTY 50 index is 3 November 1995, which marked the completion of one year of operations of the National Stock Exchange Equity Market Segment. The base value of the index has been set at 1000 and a base capital of ₹ 2.06 trillion.[13][14]
The following table shows the annual development of the NIFTY 50 since 2000.[61] The historical daily returns data can be accessed from the NSE website.[62]
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
−318.35
−3.84
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
Derivatives
Trading in futures and options on the NIFTY 50 is offered by the NSE and SGX.[63][7] NSE offers weekly as well as monthly expiry options.
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.[64]
^Serah Sudhin (September 2017). "The Journey of Nifty-Fifty"(PDF). International Journal of Academic Research and Development. 2 (5): 4. Retrieved 6 January 2021.
