NIFTY 50

NIFTY 50 Index
Foundation 1995
Operator India Index Services and Products
Exchanges National Stock Exchange of India
Constituents 50
Type Large cap
Market cap INR billion (2014)
Weighting method Capitalization-weighted
Website Official home page

The NIFTY 50 index is National Stock Exchange of India's benchmark stock market index for Indian equity market. Nifty is owned and managed by India Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited. IISL had a marketing and licensing agreement with Standard & Poor's for co-branding equity indices until 2013.

NIFTY 50 Index has shaped up as a largest single financial product in India, with an ecosystem comprising: exchange traded funds (onshore and offshore), exchange-traded futures and options (at NSE in India and at SGX and CME abroad), other index funds and OTC derivatives (mostly offshore).NIFTY 50 is the world’s most actively traded contract. WFE, IOMA and FIA surveys endorse NSE’s leadership position.[1]

The NIFTY 50 covers 22 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. During 2008-12, NIFTY 50 50 Index share of NSE market capitalisation fell from 65% to 29%[2] due to the rise of sectoral indices like NIFTY Bank, NIFTY IT, NIFTY Next 50, etc. The NIFTY 50 Index gives 29.70% weightage to financial services, 0.73% weightage to industrial manufacturing and nil weightage to agricultural sector.[3]

The NIFTY 50 index is a free float market capitalisation weighted index. The index was initially calculated on full market capitalisation methodology. From June 26, 2009, the computation was changed to free float methodology. The base period for the CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of National Stock Exchange Equity Market Segment. The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion.[4] [5]

History

Formerly known as the S&P CNX Nifty Index, it was renamed in 2013 with the expiration of agreement between IISL and Standard and Poor’s Financial Service on 31st Jan 2013.

Components

List of 50 companies that form part of NIFTY 50 Index as on 11 March 2016:

Company Name Symbol Sector
ACC Limited ACC Cement
Adani Ports & SEZ Limited ADANIPORTS Infrastructure
Ambuja Cements Ltd. AMBUJACEM Cement
Asian Paints Ltd. ASIANPAINT Paint
Axis Bank Ltd. AXISBANK Banking
Bajaj Auto Ltd. BAJAJ-AUTO Automobiles
Bank of Baroda BANKBARODA Banking
Bharat Heavy Electricals Limited BHEL Electrical Equipment
Bharat Petroleum Corporation BPCL Oil & Gas
Bharti Airtel Ltd. BHARTIARTL Telecomunications
Bosch Ltd. BOSCHLTD
Cairn India Ltd. CAIRN Oil & Gas
Cipla Ltd. CIPLA Pharmaceuticals
Coal India Ltd. COALINDIA Metals
Dr. Reddy's Laboratories Ltd. DRREDDY Pharmaceuticals
GAIL (India) Ltd. GAIL
Grasim Industries Ltd. GRASIM
HCL Technologies Ltd. HCLTECH Information Technology
HDFC Bank Ltd. HDFCBANK Banking & Financial Services
Hero MotoCorp Ltd. HEROMOTOCO Automobiles
Hindalco Industries Ltd. HINDALCO Metals
Hindustan Unilever Ltd. HINDUNILVR Consumer Goods
Housing Development Finance Corporation Ltd. HDFC Financial Services
ITC Limited ITC Consumer Goods
ICICI Bank Ltd. ICICIBANK Banking & Financial Services
Idea Cellular Ltd. IDEA Telecommunications
IndusInd Bank Ltd. INDUSINDBK Banking
Infosys Ltd. INFY Information Technology
Kotak Mahindra Bank Ltd. KOTAKBANK Financial Services
Larsen & Toubro Ltd. LT
Lupin Limited LUPIN Pharmaceuticals
Mahindra & Mahindra Ltd. M&M Automobiles
Maruti Suzuki India Ltd. MARUTI Automobiles
NTPC Limited NTPC Electric Utility
Oil & Natural Gas Corporation Ltd. ONGC Oil & Gas
PowerGrid Corporation of India Ltd. POWERGRID Electric Utility
Punjab National Bank PNB Banking
Reliance Industries Ltd. RELIANCE Energy
State Bank of India SBIN Banking & Financial Services
Sun Pharmaceutical Industries Ltd. SUNPHARMA Pharmaceuticals
Tata Consultancy Services Ltd. TCS Information Technology
Tata Motors Ltd. TATAMOTORS Automobiles
Tata Power Co. Ltd. TATAPOWER Electric Utility
Tata Steel Ltd. TATASTEEL Steel
Tech Mahindra Ltd. TECHM Information Technology
UltraTech Cement Ltd. ULTRATECH Cement
Vedanta Ltd. VEDL Metals & Mining
Wipro WIPRO Information Technology
Yes Bank Ltd. YESBANK Banking & Financial Services
Zee Entertainment Enterprises Ltd. ZEEL Media & Entertainment

Major falls

On the following dates, the NIFTY 50 index suffered major single-day falls (of 150 or more points)

  1. 11 Nov 2016 --- 229.45 Points (driven by US election results & demonetisation move by the government)
  2. 24 June 2016 --- 181.85 Points (driven by the Brexit referendum)[6]
  3. 24 Aug 2015 --- 490.95 Points (driven by meltdown in the Chinese stockmarket)[7]
  4. 16 Aug 2013 --- 234.45 Points(because of rupee depreciation)[8]
  5. 27 Aug 2013 --- 189.05 Points[9]
  6. 03 Sep Aug 2013 --- 209.30 Points
  7. 06 May 2015 - NSE Nifty slipped below the 8,200-level by falling 179.25 points or 2.15 per cent to 8145.55. Besides, overnight losses in the US markets on worries about surging oil prices, poor trade data and growing tensions over the Greek debt crisis weighed on sentiments.[10]
  8. In 1991, New Delhi kickstarted the economic reforms process owing mainly to the serious balance of payments crisis it was facing.
  9. 1997 Asian Financial Crisis - Investors deserted emerging Asian shares, including an overheated Hong Kong stock market. Crashes occur in Thailand, Indonesia, South Korea, Philippines, and elsewhere, reaching a climax in the October 27, 1997 mini-crash.

See also

References

  1. ↑ https://www.nseindia.com/content/press/PR_cc_12052016.pdf
  2. ↑ NIFTY 50 loses importance to sectoral indices
  3. ↑ Sectoral weightage of CNX Nifty 50 Index
  4. ↑ CNX Nifty Index Methodology
  5. ↑ https://www.nseindia.com/products/content/equities/indices/indices.htm
  6. ↑ Bureau/Agencies, Our (2016-06-24). "Sensex, Nifty reel as Brexit spooks world markets". Retrieved 2016-06-26.
  7. ↑ "Global mayhem: Sensex crashes 1624 pts; Nifty breaches 7900". Moneycontrol.com.
  8. ↑ "Sensex crashes 769 points, Nifty 234 points down". IBNLive.
  9. ↑ Our Bureau. "Re, Sensex sink on fears Food Bill will feed deficit". The Hindu Business Line.
  10. ↑ http://www.financialexpress.com/article/markets/indian-markets/bse-sensex-down-82-pts-nse-nifty-slip-below-8300-mark/69790/

External links

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