Understanding the Nifty 50 Stocks List with Weightage is crucial for savvy stock enthusiasts to gauge market trends and sector performance. It is like having a GPS to stay ahead in your market games guiding you through the market landscape, showing which sectors are driving the action. Stay informed to steer your portfolio in the right direction!
What is the Nifty 50 Index
The Nifty 50 Index, a benchmark stock market index of the National Stock Exchange of India (NSE), showcases the performance of 50 large-cap Indian companies listed on the NSE. It relies on free-float market capitalisation, focusing solely on shares available for trading, ensuring a fair representation of actively tradable shares. This method accurately mirrors the Indian equity market’s performance.
Leading companies from sectors like banking, finance, technology, energy, and consumer goods are handpicked based on their free float market capitalisation, liquidity, and sector representation. The Nifty 50 Index acts as a yardstick for evaluating India’s stock market performance, reflecting trends, investor sentiment, and economic conditions.
It also provides the framework for financial instruments including exchange-traded funds (ETFs), options, futures, and index funds. Through these channels, financiers can actively participate in the dynamics of the Indian stock market by being aware of the performance of the Nifty 50 Index.
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What is Free-Float Market Capitalisation?
Free-float market capitalisation refers to the market value of a company’s outstanding shares that are available for trading in the open market. It is a measure of a company’s equity value, taking into account only those shares that are actively traded and not held by insiders, promoters, or locked-in shareholders.
In other words, the free-float market cap excludes shares that are not readily available for trading and might not influence the stock’s price due to being held by long-term investors or company insiders. This measure provides a more accurate representation of a company’s market value as it reflects the portion of shares that can be bought and sold in the open market, influencing stock prices and market dynamics.
How are weights assigned to the stocks and sectors in the Nifty 50 Index?
Weights assigned to stocks and sectors in the Nifty 50 Index are determined based on several factors.
Market Capitalisation: Stocks with higher market capitalisation contribute more weight to the index.
Example: Company A with a market cap of billion will have a higher weight than Company B with a market cap of billion.
Liquidity and Trading Volume: Stocks that are more actively traded and have higher liquidity influence the index more.
Example: If Company C has a high trading volume compared to Company D, it will likely have a greater impact on the index.
Sector Representation: The index aims to represent various sectors of the economy.
Example: If three technology companies and two banking companies are in the index, the technology sector will have a higher weightage.
Weightage Adjustments: Adjustments are made periodically to reflect changes in market conditions.
Example: If Company E experiences a significant increase in its stock price, its weight in the index may be increased to reflect its growing importance in the market.
The objective is to ensure that the index accurately reflects the performance of the market. By assigning weights based on market cap, liquidity, and sector representation, the Nifty 50 Index provides a balanced view of the Indian stock market.
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Sector Representation of Nifty 50 Stocks List with Weightage
The sector representation of the Nifty 50 stocks list with weightage offers a holistic view of the Indian stock market. The Index showcases a diverse array of sectors within the Indian economy. This includes Financial Services, Information Technology, Oil, Gas & Consumable Fuels, FMCG, and more. The weightage assigned to each sector depends on its collective market capitalisation, with sectors like Financial Services commanding 33.00% of the total index. It is followed by Information Technology (14.14%), Oil, Gas & Consumable Fuels (12.67%), FMCG (8.78%), and Automobile and Auto Components (6.71%). In contrast, the chemical sector holds a 0.28% weight in the Index. Data Source: Factsheet NSE India Nifty Index
For the index to accurately represent the overall composition of the market, maintaining a balanced distribution is essential. This ensures a broad perspective by preventing any industry from taking the front stage. Market movements and investor mood are influenced by sector representation, with variations indicating changes in the market dynamics.
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| Sector | Weight (%) |
| Financial Services | 33.00 |
| Information Technology | 14.18 |
| Oil, Gas & Consumable Fuels | 12.67 |
| Fast Moving Consumer Goods (FMCG) | 8.78 |
| Automobile and Auto Components | 6.71 |
| Construction | 4.33 |
| Healthcare | 4.31 |
| Metals & Mining | 3.75 |
| Telecommunication | 3.12 |
| Consumer Durables | 3.03 |
| Power | 2.83 |
| Construction Materials | 2.08 |
| Services | 0.93 |
| Chemicals | 0.28 |
As of 13-02-2024 | Data Source: Factsheet NSE Nifty Index
Nifty 50 Stocks List with Weightage in 2024
And here it is, the much-anticipated Nifty 50 Stocks List with Weightage for 2024. This roster of 50 stocks typically sees dominance from market leaders, but emerging industries are not lagging in securing their spots. Large-cap stocks with stability have managed to hold prominent positions, reflecting their resilience in the market.
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Nifty 50 Stocks List with Weightage in 2024
| Stocks | Industry | Index weight | Free float Market Cap values (in ₹ thousand crore) | Current Price |
| HDFC Bank Ltd | Financial Services | 11.14% | 1,042.00 | ₹ 1,395 |
| Reliance Industries Ltd | Oil, Gas & Consumable Fuels | 10.63% | 993.90 | ₹ 2,922 |
| ICICI Bank Ltd | Financial Services | 7.46% | 697.11 | ₹ 1,017 |
| Infosys Ltd | Information Technology | 6.22% | 581.16 | ₹ 1,672 |
| Tata Consultancy Services Ltd | Information Technology | 4.28% | 400.24 | ₹ 4,119 |
| Larsen & Toubro Ltd | Construction Materials | 4.10% | 382.82 | ₹ 3,326 |
| ITC Ltd | FMCG | 3.85% | 359.69 | ₹ 408 |
| Axis Bank Ltd | Financial Services | 3.43% | 320.61 | ₹ 1,064 |
| Bharti Airtel Ltd | Telecommunication | 2.91% | 271.73 | ₹ 1,120 |
| State Bank of India | Financial Services | 2.85% | 266.56 | ₹ 717 |
| Kotak Mahindra Bank Ltd | Financial Services | 2.60% | 242.95 | ₹ 1,728 |
| Hindustan Unilever Ltd | FMCG | 2.28% | 213.02 | ₹ 2,393 |
| HCL Technologies Ltd | Information Technology | 1.86% | 173.77 | ₹ 1,651 |
| Bajaj Finance Ltd | Financial Services | 1.82% | 170.18 | ₹ 6,611 |
| Sun Pharmaceuticals Industries Ltd | Healthcare | 1.80% | 168.54 | ₹ 1,547 |
| Tata Motors Ltd | Automobile and Auto Components | 1.69% | 157.60 | ₹ 914 |
| Mahindra & Mahindra Ltd | Automobile and Auto Components | 1.63% | 153.00 | ₹ 1,674 |
| NTPC Ltd | Power | 1.63% | 152.39 | ₹ 321 |
| Maruti Suzuki India Ltd | Automobile and Auto Components | 1.51% | ₹ 10,764 | ₹ 10,764 |
| Titan Company Ltd | Consumer Durables | 1.41% | 131.55 | ₹ 3,593 |
| Power Grid Corporation of India Ltd | Power | 1.30% | 120.97 | ₹ 268 |
| Asian Paints Ltd | Consumer Durables | 1.26% | 117.35 | ₹ 2,945 |
| Tata Steel Ltd | Metals & Mining | 1.17% | 109.03 | ₹ 137 |
| UltraTech Cement Ltd | Construction Materials | 1.17% | 108.63 | ₹ 9,799 |
| Adani Ports & Special Economic Zone Ltd | Services | 1.15% | 107.14 | ₹ 1,272 |
| Coal India Ltd | Oil, Gas & Consumable Fuels | 1.09% | 101.44 | ₹ 448 |
| ONGC | Oil, Gas & Consumable Fuels | 1.07% | 99.54 | ₹ 257 |
| Bajaj Auto Ltd | Automobile and Auto Components | 0.97% | 89.82 | ₹ 7,910 |
| Bajaj Finserv Ltd | Financial Services | 0.95% | 87.86 | ₹ 1,564 |
| Nestle India Ltd | FMCG | 0.95% | 87.70 | ₹ 2,448 |
| IndusInd Bank Ltd | Financial Services | 0.92% | 85.15 | ₹ 1,443 |
| Adani Enterprises Ltd | Metals & Mining | 0.89% | 83.04 | ₹ 3,207 |
| Tech Mahindra Ltd | Information Technology | 0.87% | 80.61 | ₹ 1,295 |
| Cipla Ltd | Healthcare | 0.81% | 74.97 | ₹ 1,434 |
| Dr Reddy's Laboratories Ltd | Healthcare | 0.80% | 73.99 | ₹ 6,250 |
| Grasim Industries Ltd | Construction Materials | 0.78% | 72.76 | ₹ 2,039 |
| Hindalco Industries Ltd | Metals & Mining | 0.78% | 72.57 | ₹ 507 |
| Tata Consumer Products Ltd | FMCG | 0.76% | 70.95 | ₹ 1,129 |
| Wipro Ltd | Information Technology | 0.75% | 69.73 | ₹ 500 |
| JSW Steel Ltd | Metals & Mining | 0.74% | 68.77 | ₹ 800 |
| Apollo Hospitals Enterprise Ltd | Healthcare | 0.74% | 68.76 | ₹ 6,742 |
| SBI Life Insurance Company Ltd | Financial Services | 0.66% | 61.46 | ₹ 1,460 |
| Hero MotoCorp Ltd | Automobile and Auto Components | 0.66% | 61.36 | ₹ 4,752 |
| Britannia Industries Ltd | FMCG | 0.63% | 58.61 | ₹ 4,998 |
| Bharat Petroleum Corporation Ltd | Oil, Gas & Consumable Fuels | 0.62% | 57.49 | ₹ 588 |
| HDFC Life Insurance Company Ltd | Financial Services | 0.59% | 54.82 | ₹ 583 |
| LTIMindtree Ltd | Information Technology | 0.54% | 50.52 | ₹ 5,443 |
| Eicher Motors Ltd | Automobile and Auto Components | 0.54% | 50.51 | ₹ 3,885 |
| Divis Laboratories Ltd | Healthcare | 0.50% | 46.46 | ₹ 3,637 |
| UPL Ltd | Chemicals | 0.26% | 24.27 | ₹ 479 |
As of 13-02-2024 | Data Source: NSE India
Computing the Nifty 50 Index with Free Float Market Cap Method
Determine Free Float Market Cap: Calculate the market capitalisation of each stock by multiplying its current market price by the number of shares available for trading in the open market.
Assign Weightage: Assign weightage to each stock based on its free float market capitalisation. Stocks with higher free float market caps contribute more significantly to the index.
Sum of Weighted Market Caps: Calculate the sum of the weighted market capitalisations of all 50 stocks in the Nifty 50 Index.
Compute Index Value: Divide the sum of weighted market caps by a divisor, which is a constant number predetermined by the NSE. This yields the value of the Nifty 50 Index.
The formula for computing the Nifty 50 Index based on free-float market capitalisation is:
Nifty 50 Index = Σ(Weighted Free Float Market Caps of Constituent Stocks) / Index Divisor
By using this method, the Nifty 50 Index accurately reflects the performance of actively tradable shares in the Indian equity market.
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Bottom Line
Summing up the Nifty 50 Stocks List with Weightage, the composition of the Nifty 50 Index is not fixed forever. The index is periodically reviewed and rebalanced by the NSE (National Stock Exchange of India) based on certain criteria. These criteria might include the market capitalisation, liquidity, and sector representation of the stocks.
As market conditions change and companies’ performances vary, the stocks included in the Nifty 50 Index can change accordingly. New companies might be added to the index, while others may be removed. This process ensures that the Nifty 50 Index continues to reflect the performance of the top 50 companies listed on the NSE at any given time.
That’s all for today’s post. Hope you get some valuable insights from here.
Happy reading!
Disclaimer
The blog is meant for informational purposes and serves the general analysis of the stocks. The contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a while. The post does not consist of any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfil their responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.
