Nifty 50 FAQs
Nifty 50 is a benchmark index that represents market performance of fifty stocks that are listed on the NSE. Nifty is 50 derived from words 'national' and 'fifty'.
Nifty 50 index is calculated by free-float market capitalisation method, and has a base value of 1000. The index recently in August 2024 has surpassed 25,000 mark.
The major constituents of Nifty 50 index include: HDFC Bank, Shriram Finance, Adani Ports and SEZ, Adani Enterprises, Dr Reddy's Laboratories, Nestle India, BPCL, Coal India, Kotak Mahindra Bank, Titan, Power Grid, NTPC, ONGC, Hero Motocorp, Hindalco, Hindustan Unilever. SBI, Infosys, Tech Mahindra, Reliance Industries, ICICI Bank, Bajaj Finance, and Bajaj Finserv.
One can invest Nifty 50 directly by purchase of stocks on the NSE or invest in index mutual funds that track the index. These index funds pool money from various investors and are low risk instruments compared to stocks.
Nifty 50 is calculated by the free-float market capitalisation method considering shares available for trading, except those held by promoters, government, and other shares that are not actively traded. The base year is considered as November 3, 1995, and the base value is 1000.
Nifty index = (Free flat market capitalisation of 30 companies / Base market capitalisation) * Base value of index
Nifty 50 is driven by various factors including corporate performance, government policies, interest rates, monetary policies, key political announcements, inflation, and exchange rates. The index recently crossed 25,000 level fueled by various factors such as GDP growth, domestic liquidity and favourable monsoon conditions.
The real-time information is available on the NSE website. Investors, shareholders and middlemen also get access to data on brokerage platforms such as Groww, Zerodha.
Nifty 50 ETF (exchange traded fund) is a set of securities that track the composition of Nifty 50 index. Its trading value represent the net asset value of the underlying stock it represents.
According to NSE data, equity segment is open for trading on all days, except weekends, and declared stock market holidays, between regular trading sessions from 9.15 am to 3.30 pm. The pre-market session is open from 9 am to 9.08 am, and the block deal session operates between 8.45 am to 9 am, and 2.05 pm to 2.20 pm.
