Nifty 50 (NIFTY 50) live share price today at NSE

What is the Nifty 50 Index?

The Nifty 50 index is the benchmark index of the Indian stock market that falls under the category of broad-based indices under the National Stock Exchange (NSE) of India. It is a key index that is tracked by the investing world to analyse the performance of the Indian stock market and asses the economic growth and health of the Indian economy. 

The Nifty 50 index represents India’s top 50 large-cap and most liquid companies. The Nifty 50 stocks have the highest market capitalisation among all the listed Indian equities. Hence, the index presents a comprehensive view and real-time measure of the stock market’s health. 

Since its inception, the index has been a solid yardstick for comparing the Indian stock market with other global markets. Nifty 50 has been successful in assisting investors to gauge the market pulse and track the performance of the top 50 blue-chip Indian companies. 

The stocks included in the Nifty 50 index are known for their stability and liquidity and are preferred equity shares for investing in the Indian stock market. An important thing to note is that Nifty 50 represents only those large-cap stocks listed on the National Stock Exchange (NSE). 

• The Nifty 50 is a broad-based market index that tracks the performance of India’s top 50 blue-chip companies. 
• The index portrays a real-time image of the health of the Indian stock market. 
• The constituents of the Nifty 50 index include the top 50 large-cap and most liquid Indian equities. 

Nifty 50 Index - Major Milestones

The Nifty 50 index was launched on the 22nd April 1996, and the constituents of the index were then weighted based on the full market capitalisation value of stocks. However, from 26th June 2009, the method was changed to the free-float market capitalisation method. 

In the initial stages, the index represented 33.7% of the full market cap and 62.2% of the turnover of actively traded NSE shares. However, the coverage of the Nifty 50 index has increased significantly to 57.35% of the average free-float market cap, 47.36% of the average full market cap, and 28.35% of the average daily turnover of all actively traded equities on NSE. 

As of 31st December 2024, the Nifty 50 covers 13 sectors of the Indian economy, which include key sectors like financial services, information technology, healthcare, construction, and many more. Currently, the financial services sector holds the highest weight in the index at 34.60%, followed by IT (14.06%), oil, gas & consumable fuels (10.00%), and fast-moving consumer goods (8.00%). 

Since the inception of the Nifty 50 index, 12 NSE-listed stocks have been its constituents till now.  These stocks represent companies such as HDFC Limited*, HDFC Bank Limited, State Bank of India, ICICI Bank Limited, Bajaj Auto Limited, Tata Motors Limited, ITC Limited, Reliance Industries Limited, and 5 other market-leading corporations. 

*HDFC Limited was part of the index until its merger with HDFC Bank in July 2023. 

• The Nifty 50 index was launched on 22nd April 1996, and the weights of its constituents were then based on the full market capitalisation method. 
• From 26th June 2009, the weights of the 50 Nifty constituents were calculated using the free market capitalisation method.   
• As per the data of 2024, the Nifty 50 covers approximately 57.35% of the average free float market cap and 47.36% of the average full market cap.  

Nifty 50 Index Features

These are the following points that summarise the features of the Nifty 50 index:

Tracker for the stock market 

The Nifty 50 index evaluates the performance of the top 50 listed Indian stocks. Therefore, it plays a crucial role as a stock market tracker while providing real-time data and insights about the general market sentiment.

Assists in decision-making 

By looking at the movement in the Nifty 50 share price over a trading period, investors gauge the overall market momentum, which eventually helps in robust decision-making. 

Benchmark of economic performance 

Many investors and other stock market participants consider the Nifty 50 index as a measure of the economy’s performance. This is because its growing value indicates that the performance of its constituents is improving, which is directly correlated to the country's economic performance.

Portfolio and fund benchmarking

Being one of the most important market indices, the Nifty 50 is significant among investors and fund managers. They use the index as a comparison tool for their portfolios and funds, which helps them make solid strategies for stock market investing. 

Key Takeaways on the Nifty 50 Index 

• The Nifty 50 index is a broad-based benchmark index of the National Stock Exchange (NSE). It represents the stocks of the most liquid blue-chip companies in India. 
• The Nifty 50 index tracks the behaviour and collective momentum of the top 50 NSE-listed companies and gives investors a snapshot of the stock market’s performance. 
• The index was launched on the 22nd April 1996, with a base index value of 1000 and a base market cap of ₹2.06 trillion. 
• The Nifty 50 index covers 13 sectors of the economy, within which the Financial services sector holds the highest weight, followed by the information technology and healthcare sectors.