Nifty50

Journey of 25 Years (1995 - 2021)

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Introduction
Nifty 50 Index is a broad-based index consisting of 50 fair representation of the Indian equity market focusing
blue chip large and liquid stocks listed on the National on portfolio diversification, liquidity and replicability.
Stock Exchange of India. Since inception, the Nifty 50 Over the years, the Nifty 50 has become the most widely
Index has successfully become the ‘stock of the nation’, used benchmark for exchange traded products on Indian
helping investors gauge the pulse of Indian capital equity market.
market. It has lived up to its core purpose of providing a

Evolution of Nifty 50
Nifty 50 Index has an inception date of November 3, At inception, Nifty 50 constituents captured 33.7% of
1995. The index was constructed using a unique concept full market capitalization and 62.2% of turnover of active
of impact cost, which helps in the selection of highly traded equities on NSE. Over the years, market
liquid stocks and results in the creation of a replicable representation in terms of full market capitalization by
index. Initially, index constituents were weighted based Nifty 50 constituents has grown to 53.2%, and in terms
on their full market capitalization, however, starting June of turnover, representation is currently 32.5% of active
26, 2009, the index computation was changed to free traded equities on NSE.
float methodology.

Nifty 50 Attributes across years

Nifty 50 Attributes across years 2021 2015 2005 1995

Market Representation by Full MCAP (%)* 53.2 57.6 57.9 33.7

Market Representation by Average Turnover (%)* 32.5 45.1 42.2 62.2
Cumulative weight of top five stocks (%) 41.2 34.7 38.5 31.7
Cumulative weight of bottom five stocks (%) 2.2 1.7 2 1.8

*Based on 6-month average as of Dec 31 (except for 2021 which is as of Nov 30). Weights for 2021 are as of December 15, 2021; Weights for 2015, 2005 and 1995
are as of December 31 for the respective year. Weights for 2021 and 2015 are calculated based on Free-Float market capitalization; Weights for 2005 and 1995 are
based on Full market capitalization.

The Nifty 50 currently has exposure to 13 sectors. Since 17.9% of weight in the index. Similarly, weights of stocks
Nifty 50 index’s inception, the weights of sectors have from the financial services sector have grown from 20%
changed over time due to evolving market dynamics. For to 37%, while weights of Consumer goods and Metals
example, the IT sector was not represented at the time sectors have declined from 19.0% to 10.8% and 10.9%
of inception, but as of December 15, 2021, it represents to 3.4% respectively over the same time period.

Sector composition of Nifty 50 across years

Sector 2021 2015 2005 1995

FINANCIAL SERVICES 37.0 31.0 12.8 20.0

IT 17.9 16.3 20.0 -
OIL & GAS 11.9 9.1 25.0 9.8
CONSUMER GOODS 10.8 10.1 8.0 19.0
AUTOMOBILE 5.1 9.9 6.8 12.2
METALS 3.4 2.8 5.5 10.9
PHARMA 3.3 7.3 4.2 2.7
CONSTRUCTION 3.0 3.7 1.8 4.5

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Sector composition of Nifty 50 across years

Sector 2021 2015 2005 1995

CEMENT & CEMENT PRODUCTS 2.5 2.8 2.5 5.5

TELECOM 2.2 2.2 6.3 -
POWER 1.8 2.6 1.5 2.0
SERVICES 0.7 0.8 1.1 1.1
FERTILISERS & PESTICIDES 0.5 - - 1.9
TEXTILES - - - 2.2
CHEMICALS - - 0.8 5.8
CONSUMER SERVICES - - - 1.9
MEDIA, ENTERTAINMENT & PUBLICATION - 0.8 0.5 -
INDUSTRIAL MANUFACTURING - 0.5 3.1 0.6

Weights for 2021 are as of December 15, 2021; Weights for 2015, 2005 and 1995 are as of December 31 for the respective year. Weights for 2021 and 2015 are
calculated based on Free-Float market capitalization; Weights for 2005 and 1995 are based on Full market capitalization.

12 companies present in Nifty 50 since inception

Reliance Industries Ltd. Hindustan Unilever Ltd. Tata Motors Ltd.

HDFC Bank Ltd. ITC Ltd. Tata Steel Ltd.
Housing Development Finance Corporation Ltd. State Bank of India Hindalco Industries Ltd.
ICICI Bank Ltd. Bajaj Auto Ltd. Larsen & Toubro Ltd.

Each of the 12 companies in the above table was present and are currently still in the Nifty 50 as of December 15,
on the inception date of the Nifty 50 in November 1995 2021.

Nifty 50 Total Return index Performance

Since June 30, 1999, the Nifty 50 Total Return (TR) index index has returned 11.8% CAGR, 17.6% CAGR and
has given annualized returns of 14.2% CAGR with annu- 28.4% CAGR over the last 15 years, 5 years and 1 year
alized volatility of 22.9%. TR index assumes dividends respectively. Volatility has been 22% over the last 15
are reinvested in the index and hence represent both years, 18.2% over the last 5 years and 15.8% over the
Price Return (PR) and Dividend return. The Nifty 50 TR last 1 year. All data are as of December 15, 2021.

20000
Nifty 50 performance–Price Return index values (Nov’ 95 –Dec’ 21)
18000
16000
14000
12000
10000
8000
6000
Pandemic Crisis
4000
Dot Com Crisis Sub Prime Crisis
2000
0
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021

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Return and Volatility Profile of Nifty 50 TR index (As of Dec 15, 2021)

Period Returns Volatility

Since June 30, 1999 14.2% 22.9%

15 Years 11.8% 22.2%
10 Years 15.2% 17.0%
7 years 12.5% 17.5%
5 years 17.6% 18.2%
3 years 18.2% 21.7%
1 Year 28.4% 15.8%

Returns data is CAGR returns as of Dec 15, 2021

Calendar Year Returns for Nifty 50 TR index

In terms of calendar year returns between 1999 and and exceeded 40% in 4 calendar years. Out of the 5
2020, the Nifty 50 TR index has given positive returns in calendar years where the Nifty 50 TR index had negative
17 out of 22 calendar years. Returns were between 0 to returns, returns were between 0 to -20% in 3 calendar
20% in 8 calendar years, 20 to 40% in 5 calendar years years and less than -20% in 2 calendar years.

Nifty 50 TR index calendar year returns

100.0%
80.0% 76.6% 77.6%
56.8%
60.0%
41.9%
40.0% 38.6% 32.9%
29.4% 30.3% 24.6%
24.4% 16.1%
19.2%
20.0% 13.0% 13.5%
5.3% 8.1% 4.4% 4.6%
0.0%
-20.0% -3.0%
-13.4% -15.0%
-40.0% -23.8%

-60.0% -51.3%
*
04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20
99

00

01

02

03

21
20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20
19

20

20

20

20

20

20

Data for the year 1999 is from Jun 30, 1999 to Dec 30, 1999. *Data for 2021 is till December 15, 2021

Rolling Returns for Nifty 50 TR index

Percentage of total instances of positive and negative returns on a daily rolling basis
Nifty 50 TR index
Investment Horizon Negative Positive returns
returns
<0% CAGR >=0% CAGR 0-5% CAGR 5-10% CAGR 10-15% CAGR >15% CAGR
10 years 0.0% 100.0% 0.0% 20.0% 32.1% 47.9%
7 years 0.0% 100.0% 0.1% 19.9% 40.3% 39.8%
5 years 0.1% 99.9% 6.5% 24.3% 31.4% 37.7%
3 years 7.6% 92.4% 10.1% 20.2% 24.6% 37.5%
2 years 20.0% 80.0% 10.7% 12.9% 11.1% 45.4%
1 year 25.8% 74.2% 8.0% 9.0% 11.4% 45.8%
Data as of Dec 15, 2021
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The Nifty 50 TR index has delivered positive returns based on daily rolling return analysis, the Nifty 50 TR
74%-92% of the time over horizons of 1, 2 and 3 years, index has delivered a return of more than 15% p.a. for
based on daily rolling return analysis. As the investment 39.8% of the time. Likewise, for the 10-year investment
horizon increased to 5 years and longer, the frequency of horizon, based on daily rolling return analysis, the Nifty
outperformance approached 100% for 7-year and 50 TR index has delivered a return of more than 15% p.a.
10-year horizons. For the 7-year investment horizon, for 47.9% of the time.

Passive funds launched on Nifty 50 Index

Domestic Presence - ETFs
Nifty 50 is the most widely used ETF benchmark in the markets. The total AUM of all the ETFs tracking the Nifty
Indian domestic market with 16 ETFs accounting for 50 index is Rs. 163,287 Cr as of November 30, 2021.
52% of total equity ETF AUM tracking Indian domestic

Sr. Aum Sr. Aum

Scheme Name Scheme Name
No (in Rs. Cr.) No (in Rs. Cr.)

1 SBI ETF Nifty 50 118,703 9 Aditya Birla SL Nifty ETF 443

2 UTI-Nifty ETF 31,396 10 Tata Nifty Exchange Traded Fund 371
3 Nippon India ETF Nifty BeES 5,113 11 AXIS Nifty ETF 64
4 ICICI Pru Nifty ETF 3,088 12 Invesco India Nifty ETF 60
5 Kotak Nifty ETF 1,581 13 Motilal Oswal M50 ETF 27
6 HDFC Nifty 50 ETF 1,123 14 Indiabulls Nifty50 Exchange Traded Fund 16
7 Mirae Asset Nifty 50 ETF 649 15 IDFC Nifty ETF 16
8 LIC MF ETF NIFTY 625 16 Quantum Nifty ETF 12

Source: CMOTS. Data as of November 30, 2021

Domestic Presence – Index Funds

There are 18 Index funds on the Nifty 50 index in the the total equity Index Fund AUM as of November 30,
Indian domestic market. The total AUM of Index funds 2021.
on Nifty 50 is Rs. 16,105 Cr. which accounts for 52% of

Sr. Aum Sr. Aum

Scheme Name Scheme Name
No (in Rs. Cr.) No (in Rs. Cr.)

1 UTI-Nifty Index Fund 5,455 10 Tata Index Nifty Fund 208

2 HDFC Index Fund-Nifty 50 Plan 4,164 11 Navi Nifty 50 Index Fund 153
3 ICICI Pru Nifty Index Fund 2,287 12 DSP Nifty 50 Index Fund 133
4 SBI Nifty Index Fund 1,643 13 Motilal Oswal Nifty 50 Index Fund 115
5 Franklin India Index Fund-NSE Nifty Plan 447 14 Kotak Nifty 50 Index Fund 107
6 Nippon India Index Fund - Nifty 405 15 L&T Nifty 50 Index Fund 80
7 IDFC Nifty Fund 335 16 LIC MF Index Fund - Nifty Plan 50
8 Aditya Birla SL Index Fund 296 17 Edelweiss Nifty 50 Index Fund 11
9 IDBI Nifty Index Fund 213 18 Taurus Nifty Index Fund 2

Source: CMOTS. Data as of November 30, 2021

ETF and Index Fund AUM trend of Nifty 50

The total AUM of ETFs on Nifty 50 stands at Rs. 163,287 at Rs. 16,105 Cr as of November 30, 2021 as against Rs.
Cr as of November 30, 2021 as against Rs. 79,566 Cr as 4,515 Cr as of September 30, 2019, which has grown at
of September 30, 2019, which has grown at ~39% ~80% CAGR.
CAGR. The total AUM of Index Funds on Nifty 50 stands

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Nifty 50 ETF AUM Nifty 50 Index Fund AUM

NIFTY 50 INDEX FUND AUM IN RS.CR

180,000 164,226 163,287 18,000
NIFTY 50 ETF AUM IN RS.CR

160,000 138,766 16,000

140,000 125,698 16,105 14,000
120,255
15,396
120,000 99,820 12,000
88,647 90,769 12,729
100,000 79,566 10,000
72,612 10,718
80,000 9,414 8,000
60,000 7,918 6,000
7,137
40,000 5,278 4,000
4,515 5,018
20,000 2,000
0 0
Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

Source: CMOTS; Data as of November 30, 2021

International Presence - ETFs

Global ETF providers like iShares and DWS Xtrackers Nifty 50 with total AUM of USD 1.07 Bn as of November
have chosen Nifty 50 as a benchmark to launch ETFs on 2021.
Indian markets. There are 7 international ETFs based on

Sr. Aum Sr. Aum

ETF Name ETF Name
No (USD Mn) No (USD Mn)

1 iShares India ETF 717 5 ETFS NAM India Nifty 50 ETF 24

2 Next Funds Nifty 50 Linked ETF 134 6 Fubon Nifty 50 ETF 18
3 Xtrackers Nifty 50 Swap ETF 127 7 KSM ETF Nifty 50 2
4 Kiwoom KOSEF Synth India ETF 49

Source: ETFGI; Data as of November 2021

Derivatives on Nifty 50
Derivatives on Nifty 50 Index are currently traded on 3 exchanges globally, namely

1. NSE 2. NSE IFSC 3. Singapore Stock Exchange

Domestic presence:
Futures and options contracts on Nifty 50 are widely futures and options is Rs. 5.2 Tn. and Rs. 111.0 Tn.
traded on National Stock Exchange of India Ltd. (NSE). respectively.
Since 2006, average monthly notional value of Nifty 50

Gross Notional Value of F&O’s on Nifty 50 Index

GROSS NOTIONAL VALUE OF FUTURES IN RS.TN

GROSS NOTIONAL VALUE OF OPTIONS IN RS.TN

Nifty 50 Futures Nifty 50 Options

14 1,200
12 1,000
10
800
8
600
6
400
4
2 200
0 0

Data period from January 2006 till November 2021; Based on Gross Notional turnover value

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Gross No. of contracts traded (in Cr.) in F&O on Nifty 50 Index

Nifty 50 Futures Nifty 50 Options
FY 2022*

FY 2019

FY 2016

FY 2013

FY 2010

FY 2007
0 100 200 300 400 500 600 700 800
GROSS NO. OF CONTRACTS TRADED (IN CR.)

Data period from April 2006 till November 2021. *From April 2021 to November 2021

International Market:
On Singapore stock exchange, no. of contracts traded 2021. Since April 2011, 19.5 Mn. contracts have traded
have consistently increased from 14.6 Mn. in FY on average in a financial year.
2011-12 to 16.6 Mn. in FY 2021-22 YTD till November

No. of Contracts traded on Nifty 50 futures at Singapore Stock Exchange (in Mn.)
FY 2022* 16.6
FY 2021 24.9
FY 2020 23.1
FY 2019 20.3
FY 2018 22.5
FY 2017 20.8
FY 2016 21.0
FY 2015 19.9
FY 2014 16.5
FY 2013 14.7
FY 2012 14.6
0.0 5.0 10.0 15.0 20.0 25.0 30.0

Source: Data period from Apr 2011 – Nov 2021. *From April 2021 to November 2021

Current Characteristics of Nifty 50

Nifty 50 index constituents have an aggregate average 5% by weight in the Nifty 50 Index.
full market capitalization of Rs. 132.4 lakh Cr. and Currently there are 5 stocks with weight greater than
aggregate average daily turnover of ~Rs. 25,000 Cr. 5%, with Reliance Industries Ltd. having the highest
based on 6-month average data November 2021 ended. weight of 10.27%. There are a total of 26 stocks in the
Current constituents of Nifty 50 capture 63.4% of free Nifty 50 which contribute more than 1% by weight.
float market capitalization and 32.5% of turnover of the As of December 15, 2021, the Nifty 50 consists of stocks
entire equity market. As of December 15, 2021, the Nifty from 13 sectors. The Financial Services sector with 11
50 traded at a P/E of 23.75 (calculated using constituents, has the highest weightage of 37%. The IT
consolidated earnings) and P/B of 4.3. sector with 5 constituents has next highest weight of
As of December 15, 2021, the top 10 stocks by weight 18%.
contribute to 58.3% and bottom 10 stocks contribute to

3.0 2.5 2.2 1.8 0.7 0.5

3.3
3.4 37.0
5.1
10.8 11.9 17.9

FINANCIAL SERVICES IT OIL & GAS CONSUMER GOODS AUTOMOBILE METALS PHARMA CONSTRUCTION
CEMENT & CEMENT PRODUCTS TELECOM POWER SERVICES FERTILISERS & PESTICIDES

Data as of December 15, 2021

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Nifty 50 Methodology

The Nifty 50 Index tracks the performance of a portfolio Nifty 50 is re-balanced on semi-annual basis. The cut-off
of 50 largest and most liquid Indian securities. Top 50 date is January 31 and July 31 of each year, i.e. for
companies are selected from the universe of Nifty 100 semi-annual review of indices, average data for six
based on free-float market capitalization and liquid months ending the cut-off date is considered. Four
companies having average impact cost of 0.50% or less weeks prior notice is given to market from the effective
for 90% of the observations for a basket size of Rs. 10 date.
Crores. The constituents should have derivative
contracts available on NSE.

Do You Know Facts?

There are 12 companies Across 25 years, there

which are part of Nifty have been 101 inclu-
50 since inception sions in Nifty 50, aver-
aging 4 per year.

There are 7 ETFs based Derivatives on Nifty 50

on Nifty 50 listed inter- index are traded on 3
nationally having AUM exchanges globally
of USD 1.07 Bn.

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Contact details

Analytical contacts Business Development contact

Aman Singhania, CFA, FRM Rohit Kumar, FRM
Vice President and Head – Products (NSE- Indices) Vice President & Head of Sales – Index & Market Data
+91-22-26598214 +91-22- 26598386
[email protected] [email protected]

Shikhar Sethi
Senior Manager – Products (NSE- Indices)
[email protected]

Vrushali Rane
Manager – Products (NSE- Indices)
[email protected]

Contact us:
Email: [email protected] | Tel: +91 22 26598386
Address: Exchange Plaza, Bandra Kurla Complex,
Bandra (East), Mumbai– 400 051(India)

Disclaimer: All information contained herewith is provided for reference purpose only. NSE Indices Limited (formerly known as India Index Services &
Products Limited-IISL) ensures accuracy and reliability of the above information to the best of its endeavors. However, NSE makes no warranty or
representation as to the accuracy, completeness or reliability of any of the information contained herein and disclaim any and all liability whatsoever to any
person for any damage or loss of any nature arising from or as a result of reliance on any of the information provided herein. The information contained in
this document is not intended to provide any professional advice.

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Journey of 25 Years (1995 - 2021)