Nifty 50 is India’s most trusted market index, the National Stock Exchange’s official benchmark index. Prices and the economy of 13 different sectors are influenced by Nifty 50, including I.T., Energy, Automobiles, Pharmaceuticals, Metals, Finance, Banks, Oil, Media, Entertainment, and many more.
Nifty 50 gets its name from National and Fifty, representing the NSE and the Top 50 actively traded stocks and how their value is doing. It is an indicator of how an entire country’s economy is, based on the prices of these shares.
1. List of Nifty 50 Stocks with their weightage
Many well-known companies that most of us know and some others form Nifty 50. It is dependent on these companies, and Nifty share prices fluctuate along with changes in these stocks.
a) List of Nifty 50 stocks and their weightage
| Sr.No. | Company Name | Sector | Weightage |
|---|---|---|---|
| 1 | HDFC Bank Ltd. | Banks | 10.75% |
| 2 | Reliance | Petroleum Products | 8.82% |
| 3 | HDFC | Finance | 8.07% |
| 4 | Infosys Limited | Software | 6.66% |
| 5 | ICICI Bank Ltd. | Banks | 6.06% |
| 6 | ITC Ltd. | Consumer Non-Durables | 5.13% |
| 7 | TCS | Software | 5.12% |
| 8 | Kotak Mahindra Bank Limited | Banks | 4.49% |
| 9 | L&T | Construction Project | 3.79% |
| 10 | Axis Bank Ltd. | Banks | 3.04% |
| 11 | SBI | Banks | 2.82% |
| 12 | HUL | Consumer Non Durables | 2.73% |
| 13 | Bajaj Finance Ltd. | Finance | 1.71% |
| 14 | Indusind Bank Ltd | Banks | 1.69% |
| 15 | Maruti Suzuki India Limited | Auto | 1.61% |
| 16 | Asian Paints Limited | Consumer Non-Durables | 1.52% |
| 17 | Bharti Airtel Ltd. | Telecom – Services | 1.42% |
| 18 | HCL Technologies Ltd. | Software | 1.24% |
| 19 | NTPC Limited | Power | 1.22% |
| 20 | Mahindra & Mahindra Ltd. | Auto | 1.13% |
| 21 | Power Grid Corporation | Power | 1.10% |
| 22 | Sun Pharmaceutical | Pharmaceuticals | 1.04% |
| 23 | UltraTech Cement Limited | Cement | 1.00% |
| 24 | ONGC | Oil | 0.97% |
| 25 | Titan Company Ltd. | Consumer Durables | 0.97% |
| 26 | Bajaj Finserv Ltd | Finance | 0.95% |
| 27 | Wipro Ltd. | Software | 0.92% |
| 28 | Tech Mahindra Ltd. | Software | 0.89% |
| 29 | Coal India Ltd. | Minerals/Mining | 0.81% |
| 30 | Indian Oil Corporation Ltd. | Petroleum Products | 0.75% |
| 31 | Bajaj Auto Limited | Auto | 0.72% |
| 32 | Tata Steel Ltd. | Ferrous Metals | 0.72% |
| 33 | UPL Ltd. | Pesticides | 0.72% |
| 34 | Dr Reddys Laboratories Ltd. | Pharmaceuticals | 0.69% |
| 35 | Grasim Industries Ltd | Cement | 0.69% |
| 36 | Britannia Industries Ltd. | Consumer Non Durables | 0.68% |
| 37 | Hero MotoCorp Ltd. | Auto | 0.68% |
| 38 | Adani Ports | Transportation | 0.66% |
| 39 | Vedanta Ltd. | Non – Ferrous Metals | 0.62% |
| 40 | BPCL | Petroleum Products | 0.61% |
| 41 | Hindalco | Non – Ferrous Metals | 0.61% |
| 42 | Cipla | Pharmaceuticals | 0.58% |
| 43 | Tata Motors | Auto | 0.54% |
| 44 | GAIL (India) | Gas | 0.53% |
| 45 | JSW Steel | Ferrous Metals | 0.53% |
| 46 | Eicher Motors | Auto | 0.50% |
| 47 | Zee Entertainment | Media & Entertainment | 0.48% |
| 48 | Bharti Infratel | Telecom – Equipment & Accessories | 0.46% |
| 49 | Indiabulls Housing | Finance | 0.39% |
| 50 | Yes Bank Ltd. | Banks | 0.37% |
2. Advantages of trading Nifty share prices
Investors and traders are more comfortable trading in Nifty than in stocks due to some of the clear benefits:
Diversified risk – The index comprises 50 stocks in different sectors, which means buying shares in Nifty will put a smaller chance, seeing how your investments are diversified. One particular stock will not affect Nifty in its entirety.
Manipulation – There is no scope to manipulate stocks in this index, seeing how it moves according to the collective movement of the 50 stocks.
Liquidity – It is probably India’s most liquid market amidst all secondary markets. Traders especially appreciate the cash and can easily attain any quantity with minimum slippages.
Minimum Margin – While individual stocks require over 20-25% margins, Nifty only needs 3-5%, making the difference quite stark.
Not Highly Volatile – Nifty 50 index can assure some controlled or predictable shifts in prices, whereas it is impossible with regular stocks. Stocks see 20-25% movement in one day, whereas the highest fall in a day for Nifty 50 was 3.69%.
Does not need Fundamental Analysis – For studying and trading stocks, most people study both fundamental and technical analytics to understand their investment and the merit in that investment. Nifty50 index, however, does not expect these from you, as one can quickly analyze it.
Nifty 50 is India’s best stock index and was ranked 4th in the world in 2015. Stock trades become quite comfortable with Nifty, and understanding Nifty Share prices can give you enough edge to start trading. Find a professional to guide you through the first few trading steps to ensure you don’t make terrible investments.