Nifty 100 (NIFTY 100) live share price today at NSE

Nifty 100 Index - A Brief Introduction 

The Nifty 100 is a broad-based index of the National Stock Exchange (NSE) launched on 1st December 2005. It is part of the Nifty 500 and tracks the performance of the top 100 companies listed on the NSE. The Nifty 10o share price also summarises the behaviour of the Nifty 50 and Nifty Next 50 indexes.

The Nifty 100 is a benchmark index that helps investors gauge the overall sentiment of the stock market. This index includes the top 100 companies distributed among the 17 sectors of the stock market. 

 Stocks like HDFC Bank, ICICI Bank, Reliance Industries Ltd., and many other big companies hold a major weight in the Nifty 100 index and are ranked according to their free-float market capitalisation value within the index. 

The Nifty 100 index is used for various purposes, such as launching ETFs, index funds, and other financial products. The index variants of the index are the Nifty 100 Total Returns Index and the Nifty 100 Equal Weight Index. 

Nifty 100 is a broad-based index that was launched by the National Stock Exchange. 

This index is owned and operated by NSE Indices Limited. 

Nifty 100 tracks the performance of the top 100 NSE-listed stocks. 

Nifty 100 Share Price - Formula & Calculation 

The Nifty 100 is calculated based on the free float market capitalisation method. The index value is derived through the following formula:

Nifty 100 Index Formula = Free float market capitalisation / (Base market cap * Base index value)

The Nifty 100 index is revised semi-annually on the last day of January and July. During such revision, companies are excluded or included in the index, with a cap of only five replacements per review in a year. 

The index value of Nifty 100 is based on a free-float market capitalisation method. 

A company must fulfil certain criteria to be included in this index. 

Nifty 100 is rebalanced semi-annually, and only 5 replacements are possible per review in a year. 

Nifty 100 Index - Eligibility Criteria for Stock Selection

The eligible universe/ minimum eligibility criteria for Nifty 100 include the following:

The company should be a part of the Nifty 500 index and must be domiciled in India. 

The company must be listed on the National Stock Exchange of India. 

The investible weight factor (IWF) of stock should be at least 0.10 (10% free float)

The company should be ranked among the top 90 based on its full market capitalisation value. 

As of the cutoff date, a security must have a listing history of at least 1 month. 

A security will be excluded from the index if it is removed from the Nifty 500 or falls below the rank of 110 based on its full market capitalisation. 

How To Invest In the Nifty 100 index?

To invest in the Nifty 100 index, investors can choose the direct or indirect method of investing. Two methods to invest in Nifty 100 are:

Direct method

Manual investing in Nifty 100 stocks - This method includes replicating the performance of the Nifty 100 stocks by identifying and investing in stocks in the same proportion as they are constituted in the index. However, this is a cumbersome and expensive method of investing in the Nifty 100 because it is challenging to create a portfolio that is identical to the Nifty 100 without devoting a tremendous amount of time, brains, and, most importantly, money. 

Indirect method

Mutual funds and ETFs - The indirect method works as a solution for investors who are not able to invest in the Nifty 100 through the direct method. Now, investors can easily invest in the Nifty 100 through index mutual funds and ETFs, which are managed by professional fund managers who structure these index funds and ETFs to replicate the performance of the Nifty 100 index. 

Through these investment vehicles, investors can get exposure to the top 100 NSE stocks with a small amount of capital. Investors can also choose the amount and frequency of capital they want to invest in index funds or ETFs. 

Investors can either choose to invest directly or indirectly in the Nifty 100 index. 

In the direct method, investors have to construct a portfolio of stocks manually that replicates the Nifty 100. 

Under the indirect method, investors invest in the Nifty 100 through index funds and ETFs. 

Key Takeaways on Nifty 100 Index

• Nifty 100 is an index that evaluates the behaviour of Nifty 50 and Nifty Next 50. 
• It is a broad market index launched by the National Stock Exchange (NSE). 
• The Nifty 100 index tracks the performance of the top 100 large-cap stocks listed on the NSE. 
• The Nifty 100 share price is based on a free float-adjusted market capitalisation method.