Nifty 500

Nifty 500 is a stock market index designed and managed by the India Index Services and Products Limited. It features 500 companies that are selected on the basis of full market capitalization.

Companies listed on the Nifty 500

In order to be eligible to be a part of the NIFTY 500 index, companies should be ranked within top 800 based on average daily turnover and average daily full market capitalisation that is based on previous six months period data. Moreover, the companies should be into trading for minimum 90% of days during the previous six months period. Benchmarking fund portfolios, launching of Exchange Traded Funds (ETFs), index funds, and structured products are some of the cases where NIFTY 500 can be used. NIFTY broad based indices are reviewed twice every year based on six month data ending January 31 and July 31.

*Note: Last Updated on 31 July 2018

Sector Representation

Eligibility Criteria

According to the NIFTY market indices methodology document, which is published by the India Index Services & Products Limited, following are the eligibility criteria to be fulfilled by the companies to become a part of the NIFTY 500 index:

• In order to be included in the NIFTY indices, all equity shares must be listed on the NSE. Convertible stock, bonds, warrants, rights, and preferred stock that provide a guaranteed fixed return are not eligible for inclusion in the NIFTY indices.
• Equity shares of the companies will be included if the rank based on full market capitalisation is among top 350.
• Share of the companies will be included in the index if full market capitalisation is twice of the last constituent in NIFTY 500.
• Company shares will not be included in the index if rank based on full market capitalisation falls below 800.
• In case of newly listed shares, the eligibility criteria is checked based on the data for a 3 month period instead of a 6 month period.
• Instruments that provide a fixed return like convertible stock, bonds, preferred stock, rights, and warrants are not eligible for inclusion in the index.

How is NIFTY 500 Calculated?

The NIFTY 500 is calculated based on the following formula:

Free Float Market Capitalisation = Shares Outstanding x Price x Investible Weight Factor (IWF)

Index Value = [(Current Free Float Market Capitalisation)/(Base Free Float Market Capitalisation)] x (Base Index Value)

Investible Weight Factor refers to the number of shares that are available to the public for general trading.

Factors Affecting NIFTY 500

Here are some of the factors that affect NIFTY 500

• Inflation
• Interest rates
• Economic conditions
• Political Stability
• Gold Price

How to Invest in NIFTY 500?

You can invest in individual stocks that are a part of NIFTY 500. It is strongly advised to do a thorough research before investing your hard-earned money in stocks market as it is risky and uncertain in nature.

Stocks vs. Mutual Funds: here's what we recommend

Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.