NIFTY 50 is NSE's diversified index comprising of top 50 stocks from 12 sectors. It tracks the market performance of largest cap companies stocks, and hence, broadly reflects the sense of the Indian economy. From June 26, 2009, the NIFTY 50 is computed based on free float methodology i.e. based on the number of shares in active circulation at any point of time. The NIFTY 50 Index represents about 63% of the free float market capitalization of the stocks listed on NSE as on March 31, 2017. It is used as benchmark for Mutual Funds, index funds and index-based derivatives.
In the table below you will find important data on Nifty 50 Share prices, 52-week High and Low, PE ratio etc. Look for Green and Orange companies for investing. Bookmark this page for your easy reference in future.
Here is the Eligibility Criteria for Selection of Constituent Stocks:
1. 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.
2. The company should have a listing history of 6 months.
3. Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index.
4. A company which 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.
When is the Nifty 50 list re-balanced?
Nifty 50 Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change.
Who manages the Nifty 50 Index?
NIFTY 50 is owned and managed by India Index Services and Products Ltd. (IISL), a subsidiary of NSE Ltd. IISL is India's specialised company focused upon the index as a core product. A professional team at IISL manages NIFTY 50 Index (and all 67 other indices under the NIFTY brand). There is a three-tier governance structure comprising the Board of Directors of IISL, the Index Policy Committee and the Index Maintenance Sub-Committee.
Why is the value of Nifty less than Sensex?
Nifty 50 and BSE Sensex are indices and show change% of value over time. Here are the differences in these 2 indices,
Sensex: Base year 1978-79, and the base value 100
Nifty: Base year 1995, and the base value 1,000
Nifty was started approximately after 17 year from the base year of Sensex. If one takes the same base year for both the indices, one would get a similar value.
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