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  
ABB 27244 0.99
ACC 22278 0.81
Ambuja Cements 21995 0.8
Bharat Petroleum Corporation 13135 0.48
Bharti Airtel 182208 6.59
BHEL 99874 3.61
Cipla 13680 0.5
Dr. Reddy's 10894 0.39
GAIL India 32029 1.16
GlaxoSmithKline Pharma 9486 0.34
Grasim Industries 31526 1.14
HCL Technologies 20340 0.74
HDFC 67878 2.46
HDFC Bank 50619 1.83
Hero Honda Motors 14877 0.54
Hindalco Industries 20163 0.73
Hindustan Unilever 48318 1.75
ICICI Bank 112542 4.07
Indian Petrochemicals Corporation 13879 0.5
Infosys Technologies 109435 3.96
ITC 69786 2.53
Larsen & Toubro 81216 2.94
Mahanagar Telephone Nigam Limited 10342 0.37
Mahindra & Mahindra 18463 0.67
Maruti Udyog 28318 1.02
National Aluminium Co. 19896 0.72
NTPC 159921 5.79
Oil and Natural Gas Corporation of India 208059 7.5
Power Grid Corporation of India    
Punjab National Bank 16829 0.61
Ranbaxy Labs 15675 0.57
Reliance Communications 119109 4.31
Reliance Energy 25530 0.92
Reliance Industries 323057 11.71
Reliance Petroleum Ltd. 67928 2.46
Satyam Computer Services 29579 1.07
Siemens 22786 0.82
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
Suzlon Energy 41746 1.51
Tata Consultancy Services 103977 3.76
Tata Motors 28960 1.05
Tata Power 17494 0.63
Tata Steel 48413 1.75
Videsh Sanchar Nigam Limited 12697 0.46
Wipro 67183 2.43
Zee Entertainment 14134 0.51

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.
 

NSE CNX Nifty 50