What is Nifty 50 – Stocks – Companies list – weightage of stocks

What is Nifty 50? Nifty 50 companies latest list with live share price, PE ratio, Market Cap, ROE, and their weightage in Nifty 50

This post was most recently updated on December 23rd, 2022

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 NameIndustrySymbol
Adani Ports and Special
 Economic Zone Ltd.
ServicesADANIPORTS
Apollo Hospitals Enterprise Ltd.HealthcareAPOLLOHOSP
Asian Paints Ltd.Consumer DurablesASIANPAINT
Axis Bank Ltd.Financial ServicesAXISBANK
Bajaj Auto Ltd.Automobile and 
Auto Components
BAJAJ-AUTO
Bajaj Finance Ltd.Financial ServicesBAJFINANCE
Bajaj Finserv Ltd.Financial ServicesBAJAJFINSV
Bharat Petroleum Corporation Ltd.Oil Gas & Consumable FuelsBPCL
Bharti Airtel Ltd.TelecommunicationBHARTIARTL
Britannia Industries Ltd.Fast Moving Consumer GoodsBRITANNIA
Cipla Ltd.HealthcareCIPLA
Coal India Ltd.Oil Gas & Consumable FuelsCOALINDIA
Divi’s Laboratories Ltd.HealthcareDIVISLAB
Dr. Reddy’s Laboratories Ltd.HealthcareDRREDDY
Eicher Motors Ltd.Automobile and 
Auto Components
EICHERMOT
Grasim Industries Ltd.Construction MaterialsGRASIM
HCL Technologies Ltd.Information TechnologyHCLTECH
HDFC Bank Ltd.Financial ServicesHDFCBANK
HDFC Life Insurance Company Ltd.Financial ServicesHDFCLIFE
Hero MotoCorp Ltd.Automobile and 
Auto Components
HEROMOTOCO
Hindalco Industries Ltd.Metals & MiningHINDALCO
Hindustan Unilever Ltd.Fast Moving Consumer GoodsHINDUNILVR
Housing Development Finance 
Corporation Ltd.
Financial ServicesHDFC
ICICI Bank Ltd.Financial ServicesICICIBANK
ITC Ltd.Fast Moving Consumer GoodsITC
IndusInd Bank Ltd.Financial ServicesINDUSINDBK
Infosys Ltd.Information TechnologyINFY
JSW Steel Ltd.Metals & MiningJSWSTEEL
Kotak Mahindra Bank Ltd.Financial ServicesKOTAKBANK
Larsen & Toubro Ltd.ConstructionLT
Mahindra & Mahindra Ltd.Automobile and 
Auto Components
M&M
Maruti Suzuki India Ltd.Automobile and 
Auto Components
MARUTI
NTPC Ltd.PowerNTPC
Nestle India Ltd.Fast Moving Consumer GoodsNESTLEIND
Oil & Natural Gas Corporation Ltd.Oil Gas & Consumable FuelsONGC
Power Grid Corporation of India Ltd.PowerPOWERGRID
Reliance Industries Ltd.Oil Gas & Consumable FuelsRELIANCE
SBI Life Insurance Company Ltd.Financial ServicesSBILIFE
Shree Cement Ltd.Construction MaterialsSHREECEM
State Bank of IndiaFinancial ServicesSBIN
Sun Pharmaceutical Industries Ltd.HealthcareSUNPHARMA
Tata Consultancy Services Ltd.Information TechnologyTCS
Tata Consumer Products Ltd.Fast Moving Consumer GoodsTATACONSUM
Tata Motors Ltd.Automobile and 
Auto Components
TATAMOTORS
Tata Steel Ltd.Metals & MiningTATASTEEL
Tech Mahindra Ltd.Information TechnologyTECHM
Titan Company Ltd.Consumer DurablesTITAN
UPL Ltd.ChemicalsUPL
UltraTech Cement Ltd.Construction MaterialsULTRACEMCO
Wipro Ltd.Information TechnologyWIPRO
NIFTY 50 companies list

NIFTY 50 Index 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 Services36.82
Information Technology13.82
Oil, Gas & Consumable Fuels 12.47
Fast Moving Consumer Goods9.18
Automobile and Auto Components 5.83
Healthcare4.06
Metals & Mining 3.85
Consumer Durables3.43
Construction2.95
Telecommunication2.59
Power1.96
Construction Materials1.79
Services0.78
Chemicals0.47
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. 10.84
HDFC Bank Ltd. 8.27
ICICI Bank Ltd. 7.94
Infosys Ltd.6.84
Housing Development Finance Corporation 5.48
Tata Consultancy Services Ltd.4.07
ITC Ltd3.86
Kotak Mahindra Bank Ltd. 3.53
Hindustan Unilever Ltd.3.18
Larsen & Toubro Ltd. 2.95
NIFTY 50 top weightage stocks

NIFTY 50 Index historical performance

The below graph shows the historical performance of NIFTY 50. Nifty has come a long way from 1000 in 1996 to 18000 in 2022. That’s 18x returns in 25 years!

Nifty historical performance
Nifty 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.

we hope you have liked this article, if you did then please share it with your friends!

FAQs on the NIFTY 50 Index

  1. 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

  2. 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

  3. 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.

  4. 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.

  5. What are nifty's returns last 10 years?

    From the level of around 5500 in Nifty in 2010; Nifty has reached 18000 in 2022 thus giving around 300% returns in 10 years.

  6. 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

Newsletter Updates

Enter your email address below to subscribe to our newsletter

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!

Join our mailing list to receive latest updates and newsletters!

You have successfully subscribed to our blog!

There was an error while trying to send your request. Please try again.

We Invest Smart will use the information you provide on this form to be in touch with you and to provide updates and marketing.