This change in the stocks of Nifty 50 reflects the change in India’s economy from manufacturing to service-based.
But today, IT sector has the second highest weightage of 17.41% in Nifty 50. Similarly, Information and Technology (IT) companies had no place in the index in 1995. In 1995, financial services sector had 19.70% weightage in the index. In fact, there has been a visible yet gradual change in the composition of the Nifty 50 index. The stocks in Nifty 50 index keeps on changing. Let us now look at the 50 companies that make up the Nifty 50. Nifty 50’s base capital is considered as Rs 2.06 Trillion.Base value of Nifty 50 index is 1,000 points.Base date for calculating Nifty 50 index is 3rd November 1995.Things to note while calculating Nifty 50 Index This is because these stocks are not freely available for trading. This means that the stocks owned by promoters of these 50 companies is not included in calculating Nifty 50. But since 26 th June 2009, Nifty 50 is calculated on free-float market capitalisation basis.
Originally Nifty 50 was calculated on full market capitalisation basis. The below timeline shows Nifty 50’s major milestones in the last 25 years. Nifty 50 is one of the most actively traded contracts in the world. The total market capitalisation of the Nifty 50 companies is a staggering Rs 1,27,83,812 crores. IISL is a wholly owned subsidiary of NSE Strategic investment Corporation Ltd. It is owned and managed by Index and Services and Products Ltd (IISL). Nifty 50 index was launched by the NSE on 22 nd April 1996. Nifty 50 index is widely used by mutual fund companies as a benchmark to track the performance of actively managed mutual funds. Nifty 50 acts as a barometer for the overall movement of the stock market. In simple terms, Nifty 50 is a collection or a basket of the 50 most active stocks on the NSE. The term Nifty 50 is a combination of National Stock Exchange and Fifty (50). It represents the weighted average of 50 largest companies listed on the National Stock Exchange (NSE).