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| Company | Market Cap | Market Price | Sector |
|---|---|---|---|
1,08,648.20 | 428.30 -7.40 (-1.70%)▼ | E-Commerce,App based Aggregator | |
1,03,327.99 | 96.57 -1.33 (-1.36%)▼ | Auto Ancillaries | |
1,03,044.20 | 998.10 -12.05 (-1.19%)▼ | Steel | |
1,32,086.57 | 396.70 -3.55 (-0.89%)▼ | Finance | |
1,00,220.51 | 378.15 -2.45 (-0.64%)▼ | Finance |
What is the Nifty Next 50?
The Nifty Next 50 is a widely recognised stock market index in India, maintained by NSE Indices Limited, a subsidiary of the National Stock Exchange (NSE). It represents the 50 companies that rank immediately after the Nifty 50 constituents in terms of free-float market capitalisation. Essentially, it serves as a barometer for the “next rung” of large, liquid, and investable companies poised for potential inclusion in the flagship Nifty 50 index. The Nifty Next 50 is often seen as a breeding ground for future blue-chip stocks, offering exposure to fast-growing firms across diverse sectors, including consumer goods, financial services, pharmaceuticals, and industrials.
This index provides investors like you with a chance to participate in the growth stories of companies that have already achieved significant scale and stability but are still on the verge of joining the elite Nifty 50. As a result, the Nifty Next 50 is often used by mutual funds, ETFs, and portfolio managers as a benchmark for large-cap or emerging large-cap strategies. The index is reviewed and rebalanced semi-annually to ensure it accurately reflects the evolving market landscape. By tracking the performance of these 50 companies, the Nifty Next 50 offers a well-diversified, dynamic, and growth-oriented investment opportunity for investors seeking alternatives to the more established Nifty 50 index.
How is the Nifty Next 50 calculated?
The Nifty Next 50 index is calculated and maintained by NSE Indices Limited using the free-float market capitalisation-weighted methodology. This approach ensures that only the shares readily available for trading by the public (excluding promoter holdings, government holdings, and other locked-in shares) are considered when determining each constituent’s weight in the index. The index is designed to represent the performance of the 50 largest companies (by free-float market capitalisation) that are not part of the Nifty 50, making it a dynamic measure of emerging large-cap stocks in India.
The calculation of the index begins with the selection of eligible companies based on market capitalization, liquidity, and trading frequency. Only companies that are available for trading on the NSE and meet stringent criteria on listing history, trading volumes, and compliance are considered. The index’s base date is November 3, 1996, with a base value of 1,000 points, providing a long-term perspective on performance.
The index value is calculated using the following formula: Index Value = (Current Free-Float Market Capitalisation / Base Market Capitalization) x Base Index Value
Rebalancing of the Nifty Next 50 occurs semi-annually, typically in March and September, to ensure that the composition remains current with market trends. Companies are added or removed based on changes in their free-float market capitalisation and trading activity. Corporate actions such as stock splits, bonus issues, rights issues, and mergers are adjusted for in the index’s calculation to maintain continuity and accuracy.
Overall, the Nifty Next 50 provides a transparent, investable, and rules-based benchmark, reflecting the performance and prospects of India’s next set of large-cap companies and serving as a key tool for investors and fund managers.
Nifty Next 50 FAQs
What are Nifty Next 50 stocks?
Nifty Next 50 stocks are the 50 companies that rank immediately after the Nifty 50 in terms of free-float market capitalisation on the National Stock Exchange (NSE). These companies are large, well-established, and actively traded, but have not yet made it into the primary Nifty 50 index. They span diverse sectors such as finance, consumer goods, healthcare, and infrastructure. Many of these stocks are considered potential candidates for future inclusion in the Nifty 50, making them attractive for investors seeking growth opportunities in companies with a proven track record yet significant room for further expansion.
How to invest in the Nifty Next 50?
You cannot directly purchase the Nifty Next 50 index itself, but you can gain exposure by investing in index mutual funds or exchange-traded funds (ETFs) that track the Nifty Next 50. These investment vehicles pool funds from investors and replicate the index’s composition, offering diversification across all 50 companies. You can invest in these funds through online investment platforms, brokers, or directly via asset management companies. Alternatively, experienced investors may choose to build a portfolio by purchasing individual Nifty Next 50 stocks, though this approach requires substantial research, monitoring, and active management to mirror the index effectively.
What is the objective of the Nifty Next 50?
The primary objective of the Nifty Next 50 is to serve as a benchmark for tracking the performance of the 50 largest companies, by free-float market capitalisation, that are not part of the Nifty 50 index. It provides investors, fund managers, and analysts with a transparent and reliable measure of the returns and trends within the emerging large-cap segment of the Indian equity market. The index also supports the creation of index funds and ETFs, thereby enabling investors like you to benefit from the growth potential of companies likely to be future leaders in the Nifty 50.
Is investment in the Nifty Next 50 safe?
Investing in the Nifty Next 50 carries a moderate to high level of risk. While the index comprises large, relatively stable companies, they are generally more volatile than Nifty 50 constituents and may be more susceptible to economic cycles and sectoral shifts. However, the potential for higher returns exists as these companies are often in a growth phase. Diversification within the index helps reduce company-specific risks, but you should assess your risk tolerance and investment horizon before allocating significant funds to this segment. Regular review and a long-term approach can help manage volatility and optimize returns.
Can you trade shares on S&P Nifty Next 50?
Individual shares that constitute the Nifty Next 50 index are listed and actively traded on the National Stock Exchange (NSE), not directly on an S&P index. However, you can buy or sell these constituent stocks through your trading accounts on the NSE just like any other listed equity. Additionally, index-based products such as ETFs and index funds tracking the Nifty Next 50 can also be traded on the exchange.
What is the difference between Nifty Next 50 and Nifty 50?
The Nifty 50 is NSE’s flagship index, comprising the 50 largest and most liquid companies by free-float market capitalidation, representing the core of India’s equity market. The Nifty Next 50, on the other hand, includes the next 50 largest companies immediately after the Nifty 50, making it a barometer of emerging large-cap stocks. While the Nifty 50 is considered a blue-chip index, the Nifty Next 50 offers exposure to companies with high growth potential, some of which may eventually be promoted to the Nifty 50. Both indices are widely used for benchmarking and investment products.