NIFTY 50

The NIFTY 50 index is National Stock Exchange of India's benchmark stock market index for Indian equity market, launched on 21st April 1996. Nifty is owned and managed by India Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited. IISL had a marketing and licensing agreement with Standard & Poor's for co-branding equity indices until 2013.

NIFTY 50 Index has shaped up as a largest single financial product in India, with an ecosystem comprising: exchange traded funds (onshore and offshore), exchange-traded futures and options (at NSE in India and at SGX and CME abroad), other index funds and OTC derivatives (mostly offshore). NIFTY 50 is the world’s most actively traded contract. WFE, IOMA and FIA surveys endorse NSE’s leadership position.^[1]

The NIFTY 50 covers 13 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. During 2008-12, NIFTY 50 50 Index share of NSE market capitalisation fell from 65% to 29%^[2] due to the rise of sectoral indices like NIFTY Bank, NIFTY IT, NIFTY Pharma, NIFTY SERV SECTOR, NIFTY Next 50, etc. The NIFTY 50 Index gives 29.70% weightage to financial services, 0.73% weightage to industrial manufacturing and nil weightage to agricultural sector.^[3]

The NIFTY 50 index is a free float market capitalisation weighted index. The index was initially calculated on full market capitalisation methodology. From June 26, 2009, the computation was changed to free float methodology. The base period for the CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of National Stock Exchange Equity Market Segment. The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion.^{[4] [5]}

Components

List of 50 companies that form part of NIFTY 50 Index as on 01 April 2017:

^[6]

Major falls

On the following dates, the NIFTY 50 index suffered major single-day falls (of 150 or more points)

1. 11 Nov 2016 --- 229.45 Points (by US election results & demonetisation move by the government)
2. 24 June 2016 --- 181.85 Points (driven by the Brexit referendum)^[7]
3. 24 Aug 2015 --- 490.95 Points (driven by meltdown in the Chinese stockmarket)^[8]
4. 16 Aug 2013 --- 234.45 Points(because of rupee depreciation)^[9]
5. 27 Aug 2013 --- 189.05 Points^[10]
6. 03 Sep Aug 2013 --- 209.30 Points
7. 06 May 2015 - NSE Nifty slipped below the 8,200-level by falling 179.25 points or 2.15 per cent to 8145.55. Besides, overnight losses in the US markets on worries about surging oil prices, poor trade data and growing tensions over the Greek debt crisis weighed on sentiments.^[11]
8. In 1991, New Delhi kickstarted the economic reforms process owing mainly to the serious balance of payments crisis it was facing.
9. 1997 Asian Financial Crisis - Investors deserted emerging Asian shares, including an overheated Hong Kong stock market. Crashes occur in Thailand, Indonesia, South Korea, Philippines, and elsewhere, reaching a climax in the October 27, 1997 mini-crash.
10. 21st January 2008 Nifty went down by more than 10% on a single day due to US sub-prime crisis. That was the beginning of a year long bear market

All Time High

• All time intraday high was 10105.00 on July 27, 2017
• All time closing high was 10020.55 on July 27, 2017.

See also

• India Index Services and Products Ltd
• CRISIL
• National Stock Exchange of India

References

External links

• Products linked to CNX Nifty Index
• Historical CNX Nifty Index values
• Bloomberg page for NIFTY:IND