NIFTY 500 Stocks

The NSE 500 Index or the NIFTY 500 is India’s first broad-based stock market index of the Indian stock market. It represents the top 500 companies based on full market capitalisation from the eligible base of listed companies in India.

The NSE NIFTY 500 represents about 96% of total market capitalisation and about 93% of the total turnover on the National Stock Exchange of India.

Index investing allows you to diversify your portfolio and minimize your risk. It gives you a better chance to earn inflation beating returns, returns that most active mutual funds find difficult to beat. Stocks present in the index are also widely tracked and very liquid, which also risk of the portfolio. All this happens at an extremely low cost, adding to the investor’s return.

The NIFTY 500 index is computed using the free-float market capitalisation weighted method. The formula used is as below:

Free Float Market Capitalization = Shares outstanding* Price * IWF.

Index Value = Current Free Float Market Capitalisation of index / Base Free Float Market Capitalisation of index * Base Index Value

Where,

Free float market capitalisation of index is the aggregate of free float market capitalisation of each scrip in the Index.

IWF: investible weight factor (Free float market capitalization/ Total market capitalization)

Base index value = 1000

Base date = January 01, 1995

At present the only option to invest in the Nifty 500 index is the Motilal Oswal Nifty 500 fund, which was launched in September 2019.

Research has shown that investing in the Nifty 50 and Nifty Next 50 index for the long term proves to be a powerful combination. Very few active mutual funds are able to beat returns generated by the two indexes.

Investing in Nifty 100 is basically the same, as the Nifty 100 index is nothing but the Nifty 50 and Nifty Next 50 index put together.

You can use different criterias to arrive at the list of best stocks in the company index. You can use return ratios like ROCE or ROE, that will help you choose companies with profitable growth.

Based on ROE, the best stocks in the companies index are:

Based on the past year's gain, the best performing stocks are:

To select the best stocks from the , you can check factors like stock returns over different time frames, the Return on Equity, the Price to Earnings (P/E) ratio, Price to Book Value (P/BV) ratio, and the company’s profitability.

Companies that have performed well fundamentally are more likely to see their stock prices gain too.

Stocks with the highest revenue growth in the past five years is :

Companies with high profit growth often witness their stock prices gaining, irrespective of the market movements.

companies that had the highest profit growth in the past five years is :