Nifty Next 50

Nifty Next 50 Today

The NIFTY Next 50 is a broad index on the National Stock Exchange (NSE) that tracks the performance of the top 50 companies after excluding them from the NIFTY 100 universe. The index covers 16 sectors, including Financial Services, FMCG, Metals & Mining, and Consumer Services. It also covers Chemicals, Power, Healthcare, Oil, Gas & Consumable Fuels, Construction Materials, Consumer Durables, IT, Capital Goods, Realty, Telecommunication, Services, and Automobile and Auto Components sectors.

The index captures almost 12% of float-adjusted market capitalization on NSE and has a total traded value of approximately 13% of all stocks on NSE for the last six months. Launched on The Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee comprise the three-tier organisation that oversees the index, which was introduced on December 24, 1996. The NIFTY Next 50 Total Returns Index is a variant ideal for benchmarking fund portfolios, nifty next 50 index fund, ETFs, and structured products.

How is NIFTY Next 50 Calculated?

This formula is used to calculate the index value:

Index value = Current free-float market capitalization/ (Base free-float market capitalization * Base Index Value)- H3

The NIFTY Next 50 index is reviewed semi-annually using data from the six months ending in January and July. Beginning on the final trading day of March and September, stocks in the NIFTY Next 50, if any, are replaced. Since 2002, 52 stocks have graduated from the NIFTY Next 50, with Tata Consumer Products replacing GAIL in 2021.

How are Stocks Selected to be Included in the NIFTY Next 50?

The 50 stocks in the NIFTY Next 50 stocks list are weighted according to their total free-float market capitalization in relation to a specific base market value, which is how the Nifty Next 50 share price is determined. The term "free float" describes shares that are easily traded by the general public and are not owned by promoters. You can check out the Nifty Next 50 index with BlinkX app

Eligibility Criteria for Constituent Stocks:

1. Listed on the National Stock Exchange.
2. Includes all 50 NIFTY 100 companies, excluding NIFTY 50 constituents.
3. Index constituents not available for the F&O segment are capped at 15% cumulative weight quarterly.
4. Non-F&O stocks individually capped at 4.5% weightage quarterly.