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Understand what the Nifty 50 is, how it represents the top 50 companies on the NSE, and why it is the most actively traded index in the Indian stock market.
Understand what the Nifty 50 is, how it represents the top 50 companies on the NSE, and why it is the most actively traded index in the Indian stock market.
| Metric | NIFTY 50 |
|---|---|
| Base Year | 1995 |
| Base Value | 1,000 |
| Number of Constituents | 50 Companies |
| Calculation Methodology | Free-Float Market Capitalization |
| Exchange | National Stock Exchange (NSE) |
| Maintained By | NSE Indices Limited |
The Nifty 50 is the benchmark stock index of the National Stock Exchange of India (NSE). It tracks the performance of 50 large-cap, highly liquid Indian companies spanning 13 major sectors of the economy.
Managed by NSE Indices Limited, the Nifty 50 represents approximately 62% of the free-float market capitalization of all stocks listed on the NSE.
To qualify for inclusion in the Nifty 50, a stock must satisfy strict liquidity and market capitalization thresholds: 1) It must trade at an average impact cost of 0.50% or less for 90% of observations, 2) It must have a minimum 6-month free-float market cap, and 3) It must be available for trading in the NSE Derivatives (F&O) segment.