Nifty50 Value 20

Nifty50 Value 20

The goal of the Nifty50 Value 20 Index is to replicate the performance and behaviour of a diverse portfolio of value companies included in the Nifty 50 Index. To understand the Nifty50 Value 20 meaning, it's a group of the 20 most liquid blue-chip businesses listed on the NSE. The Nifty50 Value 20 Index can be used for various purposes such as benchmarking fund portfolios, allocation of index funds, ETFs, and structured products.

Calculation of Nifty 50 Value 20

The index calculates the market capitalisation-weighted average of the prices of its 20 constituent stocks. It is used as a benchmark for various investment products like index funds, ETFs, and structured products.Since January 1, 2009, the Nifty50 Value 20 Index has been calculated historically. At the time of rebalancing of shares, change in index constituents, or change in investable weight factors (IWFs), the weightage of the index constituent (wherever applicable) is capped at 15%. Weightage of such stocks may increase beyond 15% between the rebalancing periods.

Eligibility Criteria for Selection of Constituent Stocks:

• The business ought to be included in the Nifty 50.
• Businesses that comply with the IRDA dividend standards will be given consideration for index inclusion. 
• Based on ROCE, PE, PB, and DY, companies are chosen. 
• Businesses that have greater DY and ROCE are chosen over those with comparatively lower PE and PB.

Stocks in Nifty 50 Value 20

The Nifty 50 Value 20 includes prominent stocks such as Bajaj Auto, Britannia Industries, Coal India, Dr. Reddy’s Laboratories, Grasim Industries, HCL Tech, Hero MotoCorp, Hindalco Industries, ICICI Bank, IndusInd Bank, Infosys, ITC, NTPC, Oil & Natural Gas, Power Grid, SBI, Tata Consultancy, Tata Steel Ltd, Tech Mahindra, and Wipro.