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  
    Ambuja Cements219950.8
    Bharat Petroleum Corporation131350.48
    Bharti Airtel1822086.59
    Dr. Reddy's108940.39
    GAIL India320291.16
    GlaxoSmithKline Pharma94860.34
    Grasim Industries315261.14
    HCL Technologies203400.74
    HDFC Bank506191.83
    Hero Honda Motors148770.54
    Hindalco Industries201630.73
    Hindustan Unilever483181.75
    ICICI Bank1125424.07
    Indian Petrochemicals Corporation138790.5
    Infosys Technologies1094353.96
    Larsen & Toubro812162.94
    Mahanagar Telephone Nigam Limited103420.37
    Mahindra & Mahindra184630.67
    Maruti Udyog283181.02
    National Aluminium Co.198960.72
    Oil and Natural Gas Corporation of India2080597.5
    Power Grid Corporation of India  
    Punjab National Bank168290.61
    Ranbaxy Labs156750.57
    Reliance Communications1191094.31
    Reliance Energy255300.92
    Reliance Industries32305711.71
    Reliance Petroleum Ltd.679282.46
    Satyam Computer Services295791.07
    State Bank of India989813.58
    Steel Authority of India830423.01
    Sterlite Industries Ltd.538841.95
    Sun Pharmaceuticals Ind.187840.68
    Suzlon Energy417461.51
    Tata Consultancy Services1039773.76
    Tata Motors289601.05
    Tata Power174940.63
    Tata Steel484131.75
    Videsh Sanchar Nigam Limited126970.46
    Zee Entertainment141340.51

    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
    Tim Ord
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    Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

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