NSE S&P CNX Nifty 50 History & Listing Requirements
What is the NSE CNX S&P Nifty 50
The CNX Nifty 50 is the list of blue chip stocks listed on the National Stock Exchange of India representing 24 sectors in the economy. The Nifty 50 and the Sensex are often used as the benchmark for tracking the health of the Indian stock market.
History of the CNX Nifty 50
The CNX stands for the Credit Rating Services of India Limited (CRISIL) and the National Stock Exchange (NSE). These two agencies partnered and formed the India Index Services and Products Ltd. (ISIL) which is a company whose primary function is to monitor and manage the Nifty 50 index. The index started with a base value of 1000 on November 3, 1995 and is calculated using the free float method which takes in account of market capitalization. Hence, the larger stocks will make up more of the index value.
Requirements for being Listed on Nifty 50
There are five requirements for a security to be listed on the Nifty 50: (1) Liquidity, (2) Market Capitalization, (3) Public Float, (4) Domicile and (5) Securities.
Components of the Nifty 50
The components of the Nifty 50 represent 77% of all the trading volume on the NSE and 60% of the total market capitalization. Below is a list of the Nifty 50 components as of 2007.
|Company name||Market Capitalization (Rs. Crore)||Weighting|
|Bharat Petroleum Corporation||13135||0.48|
|Hero Honda Motors||14877||0.54|
|Indian Petrochemicals Corporation||13879||0.5|
|Larsen & Toubro||81216||2.94|
|Mahanagar Telephone Nigam Limited||10342||0.37|
|Mahindra & Mahindra||18463||0.67|
|National Aluminium Co.||19896||0.72|
|Oil and Natural Gas Corporation of India||208059||7.5|
|Power Grid Corporation of India|
|Punjab National Bank||16829||0.61|
|Reliance Petroleum Ltd.||67928||2.46|
|Satyam Computer Services||29579||1.07|
|State Bank of India||98981||3.58|
|Steel Authority of India||83042||3.01|
|Sterlite Industries Ltd.||53884||1.95|
|Sun Pharmaceuticals Ind.||18784||0.68|
|Tata Consultancy Services||103977||3.76|
|Videsh Sanchar Nigam Limited||12697||0.46|
Chart Example of Nifty 50
Below is a chart example of the Nifty 50. Notice how the index shot from 6,000 to nearly 2,000 during the credit crisis of 2008.