NIFTY ENERGY (NIFTY ENERGY) live share price today at NSE
11 October, 2025 06:13 | NSE : NIFTY ENERGY
What is the Nifty Energy Index?
The Nifty Energy Index is a thematic index of the National Stock Exchange launched on 1st July 2005. The index acts as a benchmark to evaluate the performance and behaviour of India’s energy sector. The Nifty Energy index comprises 10 energy sector shares, which represent industries like petroleum, gas, power, etc.
The basic industries covered by the Nifty Energy Index include coal, Gas transmission/marketing, heavy electrical equipment, integrated power utilities, LPG/CNG/PNG/LNG Supplier, Lubricants, Offshore Support Solution Drilling, Oil Exploration & Production, and Oil Storage & Transportation.
The index was constituted by NSE Indices Limited, a wholly-owned subsidiary of the National Stock Exchange (NSE). This organisation is responsible for managing, operating, and governing the index to ensure that the Nifty Energy Index reflects the true image of the health and performance of the energy sector.
- The Nifty Energy Index falls under the thematic index category of the NSE indices.
- Nifty Energy Index constituents consist of 10 energy sector stocks.
- The index was launched by NSE Indices Limited on 1st July 2005, with a base date of 1st January 2001 and a base index value of 1000.
- The index share price provides a real-time image of India's energy sector’s performance.
Nifty Energy Index Stocks - Selection Criteria
- The company must be domiciled in India.
- The company must form part of India’s energy sector.
- The trading frequency of the company must be at least 90% in the last six months.
- As of the cutoff date, the company must have a minimum listing history of 1 month.
- Companies should form part of the Nifty 500 at the time of review. In case the number of eligible stocks representing a particular sector within the Nifty 500 falls below 10, then the deficit number of stocks shall be selected from the universe of stocks ranked within the top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used for index rebalancing of Nifty 500.
- The weight of any stock included in the Nifty Energy index cannot be more than 33%, and the weightage of the top 3 stocks must not be more than 62% at the time of rebalancing.
Nifty Energy Index - Formula & Calculation
The Nifty Energy Index is calculated using the free-float market capitalisation method, in which the index level represents the aggregate free-float market value of the stocks in the index. To calculate the index value, the following formula is used:
Nifty Energy Index Formula = Current index market capitalisation / (base market cap * base index value)
Here,
Current index market cap = Shares outstanding * IWF * Capping Factor * Price
Free float = The amount of outstanding shares available for secondary trading
IWF (Investible Weight Factor) = 1 (because it is based on the market capitalisation)
Also, the Nifty Energy Index is subject to a semi-annual review for which the cutoff dates are 31st January and 31st July each year. For this rebalancing, the average data for the past six months ending the cutoff dates is considered.
Key Takeaways on Nifty Energy Index
- The Nifty Energy Index is a thematic index that portrays a real-time image of the performance of India’s energy sector.
- It comprises 10 energy sector stocks spread across industries like Gas transmission/marketing, heavy electrical equipment, coal, etc.
- The index value is calculated using the free float market capitalisation method, and the constituents have a weightage cap of 33%.
FAQs
What are the Nifty Energy Index Stocks?
The Nifty Energy stocks are equity shares that represent the listed companies that operate in the Indian energy sector. Within the index, these are the top 5 constituents as per weightage:
Reliance Industries Limited - (10.06%)
Oil & Natural Gas Corporation Limited - (9.19%)
Coal India Limited - (8.63%)
NTPC Limited - (6.71%)
Power Grid Corporation of India Limited - (5.95%)
How can I invest in the Nifty Energy index?
You can invest in the Nifty Energy Index through the direct or indirect methods. Under the direct method, you have to invest in the 10 index stocks separately in the same manner and proportion as they are present in the index. This means you have to create a portfolio of stocks replicating the performance of the Nifty Energy Index, and the weightage of the stocks in the portfolio should be identical to the index.
Under the indirect method, you can choose the ETF or the index fund route. Both these financial instruments are managed by professional fund managers who structure these funds’ portfolios to generate returns similar to those of the Nifty Energy Index. The key difference between an ETF and an index fund is that ETFs are tradable instruments like equity shares, whereas index funds are not traded on the stock market.
What are the returns of the Nifty Energy index?
Per the official data of 31st December 2024, the Nifty Energy Index has provided 15.98% price returns and 18.66% total returns since its inception. In 1 year, the index’s price returns stood at 5.14%, and the total returns were 6.50%.
What is the energy sector of India?
India's energy sector comprises businesses that deal with the production, distribution, and marketing of various forms of energy to Indian consumers. The primary input for energy generation in India is Coal and other fossil fuels such as oil and natural gas. With the advancements in technology, the sector is experiencing a shift towards renewable energy, which includes solar, wind, and hydro energy.
Is it safe to invest in the energy sector stocks?
It is good if you invest in energy sector stocks as they represent a rapidly growing/booming industry in India. However, investing in the Indian stock market generally comes with financial risks. It is essential to conduct research and understand all the related pros and cons before investing in the energy sector stocks.
