Exploring Nifty Equity Indices

Nifty Equity Indices : 13 Broad Based Indices

Exploring Nifty Equity Indices

Detailed Explanation of Nifty 50, Nifty Next 50 & 11 More Nifty Indices

Introduction

Nifty50 and Sensex are the most popular, also widely tracked and traded indices in the Indian stock markets. However, these are not the only two. There are many more Nifty Indices. In this article, we are exploring the Nifty equity indices in broad based index category in detail.

Exploring Nifty Equity Indices

NSE Indices Limited maintains equity indices comprising broad-based benchmark indices(13), sectoral indices(11), strategy indices(27) and thematic indices(20).

Exploring the World of Nifty Equity Indices
Exploring the World of Nifty Equity Indices
Source : NSE Indices

What are Nifty Broad Based Indices?

  • Nifty Equity Indices in Broad Based category are the indices which consist of the large, liquid stocks listed on the Exchange.
  • They serve as a benchmark for measuring the performance of the stocks or portfolios such as mutual fund investments.
  • NSE is having total 13 broad based indices. These are:
    1. Nifty 50
    2. Nifty Next 50
    3. Nifty 100
    4. Nifty 200
    5. Nifty 500
    6. Nifty Midcap 50
    7. Nifty Midcap 100
    8. Nifty Midcap 150
    9. Nifty Smallcap 50
    10. Nifty Smallcap 100
    11. Nifty Smallcap 250
    12. Nifty LargeMidcap 250
    13. Nifty MidSmallcap 400
Nifty Equity Indices : 13 Broad Based Indices
Nifty Equity Indices : 13 Broad Based Indices
Source : NSE Indices

Above Nifty index structure efficiently represents large, mid and small market capitalization segments of the Indian capital market. Let us try to understand this structure in detail :

NIFTY 500

NIFTY 500 represents the top 500 companies based on full market capitalization from the eligible universe. In a way, you can say that it includes all the other 12 indices within itself.

  1. NIFTY 100
    • NIFTY 100 represents top 100 companies based on full market capitalization from NIFTY 500. This index intends to measure the performance of large market capitalization companies.
  2. NIFTY Midcap 150
    • NIFTY Midcap 150 represents the next 150 companies (companies ranked 101-250) based on full market capitalization from NIFTY 500. This index intends to measure the performance of mid market capitalization companies.
  3. NIFTY Smallcap 250
    • NIFTY Smallcap 250 represents the balance 250 companies (companies ranked 251- 500) from NIFTY 500. This index intends to measure the performance of small market capitalization companies.

So as you see, the index Nifty 500 is basically made up of the following 3 heads :

  • (1 to 100) – Nifty 100
  • (101 to 250) – Nifty Midcap 150
  • (251 to 500) – Nifty Smallcap 250

NIFTY 100

The Nifty 100 has 2 parts : NIFTY 50 and NIFTY Next 50

  1. NIFTY 50
    • The index represents 50 companies selected from the universe of NIFTY 100 based on free-float market capitalization and liquid companies having average impact cost of 0.50% or less for 90% of the observations for a basket size of Rs. 10 Crores.
    • The constituents should have derivative contracts available on NSE.
  2. NIFTY Next 50
    • It represents the balance 50 companies from NIFTY 100 after excluding the NIFTY 50 companies.
Detailed Stock Analysis by Invest Yadnya
Detailed Stock Analysis by Invest Yadnya

NIFTY Midcap 150

It has also 2 parts : NIFTY Midcap 50 and NIFTY Midcap 100.

  1. NIFTY Midcap 50
    • It includes top 50 companies based on full market capitalization from NIFTY Midcap 150 index and on which derivative contracts are available on NSE.
    • In case 50 Midcap stocks do not have derivatives contract available on them then it could have less than 50 stocks in the index.
  2. NIFTY Midcap 100
    • It was formerly known as ‘NIFTY Free float Midcap 100’.
    • It includes all companies from NIFTY Midcap 50. Remaining companies are selected based on average daily turnover from NIFTY Midcap 150 index.

NIFTY Smallcap 250

It has also 2 parts : NIFTY Smallcap 50 and NIFTY Smallcap 100.

  1. NIFTY Smallcap 50
    • It represents top 50 companies selected based on average daily turnover from top 100 companies selected based on full market capitalization in NIFTY Smallcap 250 index.
  2. NIFTY Smallcap 100
    • It was formerly known as ‘NIFTY Free float Smallcap 100’.
    • It includes all companies from NIFTY Smallcap 50.
    • Remaining companies are selected based on average daily turnover from top 150 companies selected based on full market capitalization from NIFTY Smallcap 250 index.

There are 3 more NIFTY Broad based indices.

NIFTY 200

In simple words, we can say NIFTY 200 includes all companies forming part of NIFTY 100 and NIFTY Midcap 100 index. ie. (NIFTY 50 + NIFTY Next 50 + NIFTY Midcap 100)

NIFTY LargeMidcap 250

It includes all companies from NIFTY 100 and NIFTY Midcap 150. It intends to measure performance of the large and mid-market capitalization companies.

NIFTY MidSmallcap 400

It includes all companies from NIFTY Midcap 150 and NIFTY Smallcap 250. It intends to measure performance of the mid and small market capitalization companies.

Base Date

The base date and base value for the NIFTY indices is as follows :

base date and base value for the NIFTY indices
Base date and base value for the NIFTY indices
Source : NSE Indices

Calculation and dissemination

  • The broad indices such as NIFTY 50, NIFTY Next 50, NIFTY 500, NIFTY 100, NIFTY Midcap 150, NIFTY Smallcap 250, NIFTY 200, NIFTY Midcap 50, NIFTY Midcap 100, NIFTY Smallcap 50, NIFTY Smallcap 100 and NIFTY MidSmallcap 400 are calculated online on all days that the National Stock Exchange of India is open for trading in equity shares and disseminated through trading terminals and website and
  • NIFTY LargeMidcap 250 is computed at end of the day.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: