Nifty Next 50 Index (Nifty 100 Stock Weightage)

The NIFTY Next 50 Index represents 50 companies from NIFTY 100 after excluding the NIFTY 50 companies.

Nifty Next 50

Next 50 is computed using the free-float market capitalization method wherein the level of the index reflects the total free-float market value of all the stocks in the index relative to a particular base market capitalization value.Next 50 can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.

Nifty Next 50 Index

• The index has a base date of November 03, 1996, and a base value of 1000
• The index aims to measure the performance of the next 50 large-cap companies which come after the top 50 companies on the basis of free-float market capitalization within NIFTY 100
• The selection of securities and weights are based on free-float market capitalization
• The Next 50 Index represents about 10% of the free-float market capitalization of the stocks listed on NSE as on December 31, 2018
• As on December 2018, six months average daily turnover of all index constituents is approximately 13% of six months average daily turnover of all stocks listed on NSE

Stocks of NIFTY 50 and NIFTY Next 50 together form the part of the large-cap index –‘NIFTY 100’, where, subject to index criteria, the top 50 stocks based on the free-float market cap is represented by NIFTY 50 stocks and ‘next 50’ stocks is represented by NIFTY Next 50 stocks.

S.No	Stock	weight %	Sector	Symbol
1	Avenue Supermarts Ltd	5.4	Consumer Discretionary	DMART
2	Muthoot Finance Ltd	4.0	Financials	MUTHOOTFIN
3	Apollo Hospitals Enterprise Ltd	3.9	Health Care	APOLLOHOSP
4	Adani Transmission Ltd	3.6	Utilities	ADANITRANS
5	Adani Enterprises Ltd	3.2	Industrials	ADANIENT
6	Vedanta Ltd	3.0	Materials	VEDL
7	Info Edge (India) Ltd	3.0	Communication Services	NAUKRI
8	Pidilite Industries Ltd	3.0	Materials	PIDILITIND
9	Adani Green Energy Ltd	2.7	Utilities	ADANIGREEN
10	Godrej Consumer Products Ltd	2.7	Consumer Staples	GODREJCP
11	ICICI Lombard General Insurance Company Ltd	2.6	Financials	ICICIGI
12	Piramal Enterprises Ltd	2.6	Financials	PEL
13	Dabur India Ltd	2.6	Consumer Staples	DABUR
14	Larsen & Toubro Infotech Ltd	2.5	Information Technology	LTI
15	Havells India Ltd	2.4	Industrials	HAVELLS
16	Jubilant Foodworks Ltd	2.2	Consumer Discretionary	JUBLFOOD
17	Ambuja Cements Ltd	2.1	Materials	AMBUJACEM
18	United Spirits Ltd	2.1	Consumer Staples	MCDOWELL-N
19	Marico Ltd	2.1	Consumer Staples	MARICO
20	PI Industries Ltd	1.9	Materials	PIIND
21	GAIL (India) Ltd	1.9	Utilities	GAIL
22	HDFC Asset Management Company Ltd	1.9	Financials	HDFCAMC
23	SBI Cards and Payment Services Ltd	1.9	Financials	SBICARD
24	DLF Ltd	1.9	Real Estate	DLF
25	Siemens Ltd	1.8	Industrials	SIEMENS
26	Bandhan Bank Ltd	1.7	Financials	BANDHANBNK
27	Lupin Ltd	1.7	Health Care	LUPIN
28	ICICI Prudential Life Insurance Company Ltd	1.7	Financials	ICICIPRULI
29	Cholamandalam Investment and Finance Company Ltd	1.7	Financials	CHOLAFIN
30	Gland Pharma Ltd	1.6	Health Care	GLAND
31	Aurobindo Pharma Ltd	1.6	Health Care	AUROPHARMA
32	Colgate-Palmolive (India) Ltd	1.6	Consumer Staples	COLPAL
33	Hindustan Petroleum Corp Ltd	1.5	Energy	HINDPETRO
34	ACC Ltd	1.5	Materials	ACC
35	Yes Bank Ltd	1.5	Financials	YESBANK
36	Indraprastha Gas Ltd	1.4	Utilities	IGL
37	Interglobe Aviation Ltd	1.4	Industrials	INDIGO
38	Indus Towers Ltd	1.4	Communication Services	INDUSTOWER
39	Bajaj Holdings and Investment Ltd	1.3	Financials	BAJAJHLDNG
40	Steel Authority of India Ltd	1.3	Materials	SAIL
41	NMDC Ltd	1.3	Materials	NMDC
42	Biocon Ltd	1.2	Health Care	BIOCON
43	Torrent Pharmaceuticals Ltd	1.2	Health Care	TORNTPHARM
44	Berger Paints India Ltd	1.2	Materials	BERGEPAINT
45	Bosch Ltd	1.1	Consumer Discretionary	BOSCHLTD
46	Procter & Gamble Hygiene and Health Care Ltd	1.1	Consumer Staples	PGHH
47	Bank of Baroda Ltd	1.1	Financials	BANKBARODA
48	Cadila Healthcare Ltd	1.0	Health Care	CADILAHC
49	Punjab National Bank	0.9	Financials	PNB
50	Jindal Steel And Power Ltd	0.2	Materials	JINDALSTEL

Nifty Next 50 Sector Weightage

NIFTY Next 50 has a well-diversified portfolio across sectors with the top 5 sectors accounting for 76% exposure. The index in all has exposure to 14 sectors with 11 sectors having individual weight lesser than 10% each. This makes NIFTY Next 50 a well-diversified index strategy which may appeal to proponents of ‘investment diversification’.

Sector Representation Sector Weight

Here is the List of sector with Weightage in Nifty Next 50 Index

• FINANCIAL SERVICES 29.13 % Sector Weightage
• CONSUMER GOODS 24.93 % Sector Weightage
• PHARMA 11.67 % Sector Weightage
• CEMENT & CEMENT PRODUCTS 6.90 % Sector Weightage
• ENERGY 6.74 % Sector Weightage
• AUTOMOBILE 5.12 % Sector Weightage
• SERVICES 3.97 % Sector Weightage
• CHEMICALS 2.81 % Sector Weightage
• METALS 1.98 % Sector Weightage
• TEXTILES 1.97 % Sector Weightage
• INDUSTRIAL MANUFACTURING 1.94 % Sector Weightage
• CONSTRUCTION 1.49 % Sector Weightage
• IT 0.96 % Sector Weightage
• TELECOM 0.38 % Sector Weightage

Top constituents by weightage

Here is the List of Stocks with weightage in Nifty Next 50 Index

S.No	Stock	weight %
1	Avenue Supermarts Ltd	5.4
2	Muthoot Finance Ltd	4.0
3	Apollo Hospitals Enterprise Ltd	3.9
4	Adani Transmission Ltd	3.6
5	Adani Enterprises Ltd	3.2
6	Vedanta Ltd	3.0
7	Info Edge (India) Ltd	3.0
8	Pidilite Industries Ltd	3.0
9	Adani Green Energy Ltd	2.7
10	Godrej Consumer Products Ltd	2.7
11	ICICI Lombard General Insurance Company Ltd	2.6
12	Piramal Enterprises Ltd	2.6
13	Dabur India Ltd	2.6
14	Larsen & Toubro Infotech Ltd	2.5
15	Havells India Ltd	2.4

NIFTY Next 50 has low weight concentration among individual stocks resulting in a highly diversified portfolio. On a stock level basis, NIFTY Next 50 boasts of a diversified and well-distributed portfolio with top 10 stocks contributing close to 35.4% exposure with individual stock weights ranging between 5.47% to 2.85%

Since its inception in November 1996, the NIFTY Next 50 index has delivered an annualized return (PR) of 16.3% as compared to 12.0% of NIFTY 50, a substantial excess return of 4.3% per annum. The outperformance of NIFTY Next 50 for period 10 year, 7 year and 5 year is even better at 6.1%, 6%, 5.4% respectively.

While the returns of NIFTY Next 50 have been impressive, the risk (read standard deviation) has been only marginally higher as compared to that of NIFTY 50 making the ‘return to risk’ ratio for the NIFTY Next 50 considerably better than that of the NIFTY 50 – at least for periods longer than 3 year.

NIFTY Next 50 has outperformed the NIFTY 50 in 13 out of 23 calendar years. Calendar years 1999, 2003, 2009, 2012 & 2017 specifically witnessed great outperformance by NIFTY Next 50.