Nifty Next 50

Nifty Next 50 is a stock market index that represents 50 companies that a part of the Nifty 100 index. The index serves as a benchmark for those companies that can be later included in the Nifty 50. Find the latest information on the index here.

The NIFTY Next 50 is a benchmark stock market index which is designed and managed by the India Index Services and Products Limited. It captures the performance of top 50 blue-chip companies

listed at NSE. NIFTY NEXT 50 comprises of 50 companies from NIFTY 100 after excluding the NIFTY 50 companies. To put in other words, NIFTY Next 50 represents companies which are currently present on the NIFTY 100 and could be potential candidates to be included in NIFTY 50.

Companies listed on the Nifty Next 50

As of May 31, 2018, the 50 companies which comprise of NIFTY NEXT 50 index have been mentioned below. The NIFTY NEXT 50 index reflects the overall dynamics of India’s equity market as well as the Indian economy. NIFTY NEXT 50 provides a representative benchmark for investments in top large-cap companies in India. It has a well-diversified portfolio across sectors and has relatively less concentrated exposure to any particular sector. Britannia Industries Ltd. holds the highest weightage at 5.06% followed by JSW Steel Ltd. at 5.01%.

*Note: Last Updated on 27th July 2018

Symbol Name of the Company Industry
ABB ABB India Ltd. INDUSTRIAL MANUFACTURING
ACC ACC Ltd. CEMENT & CEMENT PRODUCTS
ABCAPITAL Aditya Birla Capital Ltd. FINANCIAL SERVICES
AMBUJACEM Ambuja Cements Ltd. CEMENT & CEMENT PRODUCTS
ASHOKLEY Ashok Leyland Ltd. AUTOMOBILE
AUROPHARMA Aurobindo Pharma Ltd. PHARMA
DMART Avenue Supermarts Ltd. CONSUMER GOODS
BANKBARODA Bank of Baroda FINANCIAL SERVICES
BEL Bharat Electronics Ltd. INDUSTRIAL MANUFACTURING
BHEL Bharat Heavy Electricals Ltd. INDUSTRIAL MANUFACTURING
BOSCHLTD Bosch Ltd. AUTOMOBILE
BRITANNIA Britannia Industries Ltd. CONSUMER GOODS
CADILAHC Cadila Healthcare Ltd. PHARMA
COLPAL Colgate Palmolive (India) Ltd. CONSUMER GOODS
CONCOR Container Corporation of India Ltd. SERVICES
CUMMINSIND Cummins India Ltd. INDUSTRIAL MANUFACTURING
DLF DLF Ltd. CONSTRUCTION
DABUR Dabur India Ltd. CONSUMER GOODS
EMAMILTD Emami Ltd. CONSUMER GOODS
GICRE General Insurance Corporation of India FINANCIAL SERVICES
GODREJCP Godrej Consumer Products Ltd. CONSUMER GOODS
HAVELLS Havells India Ltd. CONSUMER GOODS
HINDZINC Hindustan Zinc Ltd. METALS
ICICIPRULI ICICI Prudential Life Insurance Company Ltd. FINANCIAL SERVICES
IDEA Idea Cellular Ltd. TELECOM
INDIGO InterGlobe Aviation Ltd. SERVICES
JSWSTEEL JSW Steel Ltd. METALS
L&TFH L&T Finance Holdings Ltd. FINANCIAL SERVICES
LICHSGFIN LIC Housing Finance Ltd. FINANCIAL SERVICES
MRF MRF Ltd. AUTOMOBILE
MARICO Marico Ltd. CONSUMER GOODS
MOTHERSUMI Motherson Sumi Systems Ltd. AUTOMOBILE
NHPC NHPC Ltd. ENERGY
NMDC NMDC Ltd. METALS
OIL Oil India Ltd. ENERGY
OFSS Oracle Financial Services Software Ltd. IT
PETRONET Petronet LNG Ltd. ENERGY
PIDILITIND Pidilite Industries Ltd. CHEMICALS
PEL Piramal Enterprises Ltd. PHARMA
PFC Power Finance Corporation Ltd. FINANCIAL SERVICES
PGHH Procter & Gamble Hygiene & Health Care Ltd. CONSUMER GOODS
PNB Punjab National Bank FINANCIAL SERVICES
RECLTD Rural Electrification Corporation Ltd. FINANCIAL SERVICES
SBILIFE SBI Life Insurance Company Ltd. FINANCIAL SERVICES
SHREECEM Shree Cement Ltd. CEMENT & CEMENT PRODUCTS
SRTRANSFIN Shriram Transport Finance Co. Ltd. FINANCIAL SERVICES
SIEMENS Siemens Ltd. INDUSTRIAL MANUFACTURING
SAIL Steel Authority of India Ltd. METALS
SUNTV Sun TV Network Ltd. MEDIA & ENTERTAINMENT
MCDOWELL-N United Spirits Ltd. CONSUMER GOODS

Sector Representation

The selection of securities and weights are based on free float market capitalization. When it comes to sector-wise representation of the index, the consumer goods sector tops the list at 25.60% while the financial services sector follows at 17.65%.

Sector Weightage (%)
Consumer Goods 25.60
Financial Services 17.65
Pharma 6.59
Energy 4.11
Automobile 11.83
Construction 1.36
Information Technology 1.27
Industrial Manufacturing 6.68
Cement and Cement Products 6.84
Metals 8.75
Chemicals 2.58
Telecom 1.60
Services 3.83
Media and Entertainment 1.31

Eligibility Criteria

According to the NIFTY market indices methodology document, which is published by the India Index Services & Products Limited, the following are the eligibility criteria to be fulfilled by the companies to become a part of the NIFTY NEXT 50 index:

  • In order to be considered to be included in the NIFTY NEXT 50 index, companies must form part of NIFTY 100, but should not be a part of the NIFTY 50.
  • Eligibility criteria for newly listed security are checked based on the data for a three-month period instead of a six-month period

The NIFTY NEXT 50 index has a base date of November 03, 1996 while the base value is 1,000. As per the whitepaper of NIFTY Next 50 index, it has historically outperformed NIFTY 50 index since its inception with a higher return to risk ratio for longer periods.

How is NIFTY NEXT 50 calculated?

The NIFTY NEXT 50 is calculated using free float market capitalisation method. It is calculated online on all days that the National Stock Exchange of India is open for trading in equity shares and disseminated through trading terminals and website. Some of the popular utilisation of the NIFTY NEXT 50 index is to benchmark fund portfolios, launch Exchange Traded Funds (ETFs), index funds, and structured products. Constituent changes in the index along with corporate actions like right issuance, stock splits etc. are taken into consideration at the time of calculating the index. As NIFTY NEXT 50 is included in the broad based indices, it is reviewed twice every year based on six month data ending January 31 and July 31.

The NIFTY NEXT 50 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 means the number of shares which are available to the public for general trading.

How to Invest in NIFTY NEXT 50?

You can invest in individual stocks that are a part of NIFTY NEXT 50. It is strongly advised to do a thorough research before investing your hard-earned money in stock markets as it is volatile 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.

DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.

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