What is Nifty 50 – Stocks / Companies list – weightage of stocks in 2022

What is NIFTY 50

Last Updated on 5 months ago by Raj Kumar

What is Nifty 50?

What is NIFTY 50? For a newbie investor, it’s often hard to get started with understanding all the details of stock markets. We will revisit the basics of the stock market and understand the different stock indices that we have in India. We will learn the basics of Indices and how they affect our stock market investing journey.

What is Nifty 50
What is Nifty 50

In this article, we will talk about What is Nifty 50 index?

What is Nifty 50 index?

To start with Nifty 50 index is one of many Indices that NSE India has. NSE India is a stock exchange where it allows investors/traders to invest/trade in stocks. NSE India has created many stock indices to track the performance of markets in general, NIFTY 50 is one among the many Indices.

History of NIFTY 50 index

NIFTY 50 Index was launched on 22nd April 1996. The index was launched with a base value of 1000. As the name suggests, NIFTY 50 has 50 companies as part of its index.

The NIFTY 50 index is a well-diversified 50 companies index reflecting overall market conditions. NIFTY 50 Index is computed using the free-float market capitalization method.NIFTY 50 can be used for a variety of purposes such as benchmarking fund portfolios, launching index funds, ETFs, and structured products.

Which companies/stocks are part of NIFTY 50?

As of May 2022 below are the 50 companies/stocks which are part of the NIFTY 50 Index.

Company Name / Stock NameIndustrySymbolISIN Code
Adani Ports and Special
 Economic Zone Ltd.
ServicesADANIPORTSINE742F01042
Apollo Hospitals Enterprise Ltd.HealthcareAPOLLOHOSPINE437A01024
Asian Paints Ltd.Consumer DurablesASIANPAINTINE021A01026
Axis Bank Ltd.Financial ServicesAXISBANKINE238A01034
Bajaj Auto Ltd.Automobile and 
Auto Components
BAJAJ-AUTOINE917I01010
Bajaj Finance Ltd.Financial ServicesBAJFINANCEINE296A01024
Bajaj Finserv Ltd.Financial ServicesBAJAJFINSVINE918I01018
Bharat Petroleum Corporation Ltd.Oil Gas & Consumable FuelsBPCLINE029A01011
Bharti Airtel Ltd.TelecommunicationBHARTIARTLINE397D01024
Britannia Industries Ltd.Fast Moving Consumer GoodsBRITANNIAINE216A01030
Cipla Ltd.HealthcareCIPLAINE059A01026
Coal India Ltd.Oil Gas & Consumable FuelsCOALINDIAINE522F01014
Divi’s Laboratories Ltd.HealthcareDIVISLABINE361B01024
Dr. Reddy’s Laboratories Ltd.HealthcareDRREDDYINE089A01023
Eicher Motors Ltd.Automobile and 
Auto Components
EICHERMOTINE066A01021
Grasim Industries Ltd.Construction MaterialsGRASIMINE047A01021
HCL Technologies Ltd.Information TechnologyHCLTECHINE860A01027
HDFC Bank Ltd.Financial ServicesHDFCBANKINE040A01034
HDFC Life Insurance Company Ltd.Financial ServicesHDFCLIFEINE795G01014
Hero MotoCorp Ltd.Automobile and 
Auto Components
HEROMOTOCOINE158A01026
Hindalco Industries Ltd.Metals & MiningHINDALCOINE038A01020
Hindustan Unilever Ltd.Fast Moving Consumer GoodsHINDUNILVRINE030A01027
Housing Development Finance 
Corporation Ltd.
Financial ServicesHDFCINE001A01036
ICICI Bank Ltd.Financial ServicesICICIBANKINE090A01021
ITC Ltd.Fast Moving Consumer GoodsITCINE154A01025
IndusInd Bank Ltd.Financial ServicesINDUSINDBKINE095A01012
Infosys Ltd.Information TechnologyINFYINE009A01021
JSW Steel Ltd.Metals & MiningJSWSTEELINE019A01038
Kotak Mahindra Bank Ltd.Financial ServicesKOTAKBANKINE237A01028
Larsen & Toubro Ltd.ConstructionLTINE018A01030
Mahindra & Mahindra Ltd.Automobile and 
Auto Components
M&MINE101A01026
Maruti Suzuki India Ltd.Automobile and 
Auto Components
MARUTIINE585B01010
NTPC Ltd.PowerNTPCINE733E01010
Nestle India Ltd.Fast Moving Consumer GoodsNESTLEINDINE239A01016
Oil & Natural Gas Corporation Ltd.Oil Gas & Consumable FuelsONGCINE213A01029
Power Grid Corporation of India Ltd.PowerPOWERGRIDINE752E01010
Reliance Industries Ltd.Oil Gas & Consumable FuelsRELIANCEINE002A01018
SBI Life Insurance Company Ltd.Financial ServicesSBILIFEINE123W01016
Shree Cement Ltd.Construction MaterialsSHREECEMINE070A01015
State Bank of IndiaFinancial ServicesSBININE062A01020
Sun Pharmaceutical Industries Ltd.HealthcareSUNPHARMAINE044A01036
Tata Consultancy Services Ltd.Information TechnologyTCSINE467B01029
Tata Consumer Products Ltd.Fast Moving Consumer GoodsTATACONSUMINE192A01025
Tata Motors Ltd.Automobile and 
Auto Components
TATAMOTORSINE155A01022
Tata Steel Ltd.Metals & MiningTATASTEELINE081A01012
Tech Mahindra Ltd.Information TechnologyTECHMINE669C01036
Titan Company Ltd.Consumer DurablesTITANINE280A01028
UPL Ltd.ChemicalsUPLINE628A01036
UltraTech Cement Ltd.Construction MaterialsULTRACEMCOINE481G01011
Wipro Ltd.Information TechnologyWIPROINE075A01022
NIFTY 50 companies list

NIFTY 50 weightage by sector

By far the biggest sector within NIFTY 50 is the Financial services sector which is dominated by banks. The below table shows the weightage by sector for NIFTY 50.

Sector Weight(%)
Financial Services34.82
Information Technology16.15
Oil, Gas & Consumable Fuels 14.62
Fast Moving Consumer Goods7.75
Automobile and Auto Components 5.17
Healthcare4.06
Consumer Durables3.32
Metals & Mining 3.25
Construction2.74
Construction Materials2.33
Telecommunication2.33
Power2.03
Services0.82
Chemicals0.6
NIFTY 50 weightage by sector

NIFTY 50 top weightage stocks / companies

Nifty 50 stocks weightage in 2022; Below are the top 10 companies as per their weightage. Reliance Industries, HDFC Bank, and Infosys contribute 30 % of the NIFTY 50.

Company’s Name Weight(%)
Reliance Industries Ltd. 12.86
HDFC Bank Ltd. 8.1
Infosys Ltd.7.66
ICICI Bank Ltd. 6.9
Housing Development Finance Corporation 5.39
Tata Consultancy Services Ltd.4.91
Kotak Mahindra Bank Ltd. 3.51
ITC Ltd3.03
Larsen & Toubro Ltd. 2.74
Hindustan Unilever Ltd.2.67
NIFTY 50 top weightage stocks

NIFTY 50 historical performance

The below graph shows the historical performance of NIFTY 50. Nifty has come a long way from 1000 in 1996 to 11000 in 2020. That’s 11x returns in 25 years!

NIFTY 50 historical performance

What are the eligibility criteria for a stock/company to be part of NIFTY 50?

As per NSE website

Eligibility Criteria for Selection of Constituent Stocks:

  • Market impact cost is the best measure of the liquidity of a stock. It accurately reflects the costs faced when actually trading an index. For a stock to qualify for possible inclusion into the NIFTY50, have traded at an average impact cost of 0.50% or less during the last six months for 90% of the observations, for the basket size of Rs. 100 Million.
  • The company should have a listing history of 6 months.
  • Companies that are allowed to trade in the F&O segment are only eligible to be constituents of the index.
  • A company that comes out with an IPO will be eligible for inclusion in the index if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.

NIFTY 50 Index Re-Balancing:

The index is re-balanced on a semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For a semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to the market from the date of the change.
Index Governance:

A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee.

Consider reading

Zero debt companies in India

Best dividend paying stocks in India

What is Penny stock? – List of penny stock in India

Top 100 Blue chip stocks India in 2020

What is the importance of NIFTY 50 in the Indian stock market?

Although BSE Sensex is the oldest indices in the Indian stock market NIFTY 50 is being tracked by many investors in India and all over the world. NIFTY 50 is considered the major Index of the Indian stock market. NIFTY 50’s performance is used to measure the stock market performance.

If you are a new investor then we suggest you get familiarised with NIFTY 50 stocks as they are often the top 50 stocks in Indian stock markets. The NIFTY 50 stocks are mostly considered the safest stocks to invest in.

There are many ETFs and Index funds that invest directly in Indices with a low cost of managing the fund. In that case, understanding NIFTY 50 becomes a crucial part of your investing journey.

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  • What does NIFTY 50 mean?

    Nifty 50 is one of the Indexes created in NSE which consists of 50 stocks. The purpose of NIFTY 50 is to track the underline performance of these 50 stocks which are part of the index

  • What do Sensex and nifty meaning?

    Sensex is an index of 30 stocks and Nifty also called NIFTY 50 is an index of 50 stocks. Sensex is an index created by BSE and NIFTY 50 is an index created by NSE India

  • Sensex vs NIFTY which is better?

    There is no comparison between Sensex and NIFTY as they are separate indexes on their own. SENSEX is an Index of 30 stocks so Sensex tracks the performance of 30 stocks only whereas NIFTY 50 is an index of 50 stocks that tracks the performance of 50 stocks.

    Historically Sensex and NIFTY have given similar returns on an index basis.

  • How do I invest in the NIFTY 50 Index?

    If you want to directly invest in NIFTY 50 then you can either buy an ETF that invests in NIFTY 50 or you can buy an index fund that invests in NIFTY 50.
    If you are looking to invest in stocks that are part of NIFTY 50 then you can buy any stocks which are part of NIFTY 50 via your broker.

  • What is nifty's returns last 10 years?

    From the levels of around 5500 in Nifty in 2010; Nifty has reached 12000 in 2020 thus giving around 120% returns in 10 years.

  • What are the top 10 nifty 50 stocks?

    As per the market cap, the top 10 nifty 50 stocks as of Jan 2021 are as below:-

    RELIANCE
    TCS
    HDFCBANK
    HINDUNILVR
    INFY
    HDFC
    KOTAKBANK
    ICICIBANK
    BAJFINANCE
    BHARTIARTL

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