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Nifty-50 Index Stock Companies List with Weightage 2021

Updated: Aug 30, 2021

Nifty-50 is the accurate reflection of the Indian economy as the top 50 Indian companies form it.


It was launched on 22-April-1996, and by investing in Nifty, an investor can invest in leading companies considering safety and diversification.


What is Nifty 50?


The Nifty-50 is one of the leading indexes in the National Stock Exchange of India (NSE).


The Nifty-50 consists of the top 50 listed Indian companies in NSE, representing 13 different sectors. NSE was the first exchange to provide an electronic trading system in India.


As per NSE’s statistics,

  • The NIFTY 50 Index represents about 66.8% of the free-float market capitalization of the NSE stocks.

  • The total traded value of NIFTY 50 index constituents is approximately 53.4% of all stocks' traded value on the NSE.

  • NIFTY 50 is ideal for derivatives trading.


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What are the 50 stocks of Nifty?


Below is the list of 50 companies that constitute Nifty.

Nifty 50 stocks list - Profiletraders.in

Below is the list of top-10 companies in Nifty-50.

Image - Nifty Top Companies by Weightage - Profiletraders.in
Image - Nifty Top Companies by Weightage


How is Nifty 50 Calculated?


As per NSE’s definition, the Nifty 50 is computed using a float-adjusted, market capitalization-weighted methodology, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period.


The base period for the NIFTY 50 index is November 3, 1995, which marked the completion of one year of operations of NSE's Capital Market Segment. The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion.




Is Nifty 50 a good investment?


The profit or loss in any investment depends on two parameters – 1) Entry and 2) Exit.

Nifty 30-Years Chart (monthly) - profiletraders.in
Image - Nifty 30-Years Chart (monthly)

If you look at the Nifty 30 years chart, the price displayed a steady rise all these years except a few corrections.


If someone had invested early but exited in these corrections, he would not have made much profit. Hence, it is always a good idea to invest in the long term.


Besides, Nifty witnessed a strong bounce after the Covid-10 pandemic impact. So simple strategy is to invest small portions during the corrections and hold them for a longer duration.


One can invest in three ways:


ETFs

Equity Exchange Traded Funds (ETFs) are simple products that combine the flexibility of stock investment and efficiency of index.


These ETFs are traded like any other stocks in the cash market and can be bought and sold anytime during market hours.


Stocks in Nifty

If you want to invest directly in Nifty 50, you can buy the top company's shares from Nifty.


However, it demands some involvement from the individual when the Nifty undergoes a rebalance scenario, or if a scrip undergoes a ban, or if a scrip doesn’t perform well.



Mutual Funds

It is a common pool of money collected from the investors, and a professional investment manager runs it.


Usually, mutual funds are invested in stocks, bonds, gold, and money market instruments. Many funds deploy a significant portion on the index. So, one can choose such a mutual fund and invest for the long run.



Other Key Indices of NSE


Nifty Bank

FinNifty

Nifty 100

Nifty IT

Nifty PSU Bank

Nifty Metal

Nifty Energy

Nifty FMCG



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