Nifty and Sensex: Both Nifty and Sensex are market indices but still there are some differences between them like –
The top 50 companies of India have been kept in Nifty while the top 30 companies have been kept in Sensex.
Nifty is the index of NSE i.e. National Stock Exchange while Sensex is the index of BSE i.e. Bombay Stock Exchange.
The full form of NIFTY is National Stock Exchange Index while the full form of SENSEX is Sensitivity Index because it reflects the sentiment of the market.
Which Sectors Are Included in Nifty?
Stocks of 50 companies from 14 sectors of India have been included in the Nifty50 index. And companies of these 14 sectors have been included in Nifty 50.
The names of these 14 sectors are given below –
1. Financial Services (Banking Sector)
2. Internet Technology (IT Sector)
3. Energy (Oil, Gas, Fuel)
4. Fast Moving Consumer Goods (FMCG Sector)
5. automobile
6. Metals & Mining
7. Healthcare
8. construction
9. consumer durables
10. Telecommunication
11. power
12. construction materials
13. Services
14. chemicals
What is the weightage of which sector in Nifty 50?
1. Banking Sector has the highest weightage of 36%
2. It Sector at 14.70%
3. Energy Sector at 12.7%
4. FMCG Sector Weightage is 9%
Which indices are formed by combining Nifty?
Nifty is not the only index but many other indices are formed by combining it like –
Nifty IT
Nifty Bank
Nifty FMCG
Nifty Auto
Nifty Pharma
Nifty Oil & Gas
Nifty Realty index
Apart from this, there are many Nifty indices but among these, Nifty Bank or BankNifty index is the most popular, through which lakhs of people trade in the stock market every day and earn money.
What is Bank Nifty? And how do banks trade in Nifty?
Just as NIFTY50 includes stocks of top 50 companies, similarly there are other indices like – NIFTY Next50, NIFTY100, Nifty200, NIFTY Midcap etc.
Which is NIFTY Next50, it contains 50 companies coming after Nifty50, Nifty100 contains the top 100 companies of the country and Nifty Midcap contains medium sized companies.
Many traders in the share market prefer trading in Nifty Next50 and Nifty Midcap index instead of NIFTY50 because their shares grow very fast and liquidity is also good.
How to invest money in Nifty – How to trade in Nifty?
To invest money or trade in Nifty, you have to go to your broker app and activate the Future and Option (F&O) segment.
Because you cannot invest money in Nifty like a share, meaning Nifty is not a share but it is an index in which you can invest money only when you do future trading or option trading.
In NIFTY you cannot buy a single share, rather you have to buy shares according to the lot size. The lot size of NIFTY is 75 and you have to buy at least 1 lot
Meaning, if you want to invest money in Nifty and the premium price of any call or put option of Nifty is Rs 50, then you will need at least (75×50) = Rs 3750 to buy 1 lot.
If you have bought a call option on Nifty, you will benefit only if the Nifty index goes up.
But if you buy put option then you will benefit if Nifty falls.
But if you do not know how to do option trading then the easiest way to invest in Nifty 50 is to buy NiftyBees ETF.
ETF means exchange traded fund. These are like mutual funds which can be bought directly like shares.
If you want, you can buy ETF by going to your broker app and searching Nifty BEES, this will invest your money in Nifty index and you will join the growth of Nifty.
I hope now you have understood how to invest in Nifty, let us now see which companies are in Nifty 50 –
Nifty 50 companies Nifty50 Share List 2023
1. ITC Ltd
2. Indusind Bank Ltd
3. Larsen & Toubro Ltd
4. Axis Bank Ltd
5. UltraTech Cement Ltd
6. Tata Motors Ltd
7. Titan Company Ltd
8. Britannia Industries Ltd
9. Mahindra and Mahindra Ltd
10. JSW Steel Ltd
11. NTPC Ltd
12. Eicher Motors Ltd
13. Apollo Hospitals Enterprise Ltd
14. Nestle India Ltd
15. ICICI Bank Ltd
16. Grasim Industries Ltd
17. Hindalco Industries Ltd
18. Tata Steel Ltd
19. Bajaj Finance Ltd
20. State Bank of India
21. Bajaj Finserv Ltd
22. Bharti Airtel Ltd
23. Bajaj Auto Ltd
24. Coal India Ltd
25. Bharat Petroleum Corporation Ltd
26. Asian Paints Ltd
27. Housing Development Finance Corporation Ltd
28. Maruti Suzuki India Ltd
29. Sun Pharmaceutical Industries Ltd
30. Hindustan Unilever Ltd
31. HCL Technologies Ltd
32. HDFC Bank Ltd
33. SBI Life Insurance Company Ltd
34. Tata Consumer Products Ltd
35. Power Grid Corporation of India Ltd
36. Dr Reddy’s Laboratories Ltd
37. Oil and Natural Gas Corporation Ltd
38. HDFC Life Insurance Company Ltd
39. Adani Enterprises Ltd
40. Hero MotoCorp Ltd
41. Tech Mahindra Ltd
42. Adani Ports and Special Economic Zone Ltd
43. Kotak Mahindra Bank Ltd
44. Cipla Ltd
45. UPL Ltd
46. Tata Consultancy Services Ltd
47. Divi’s Laboratories Ltd
48. Reliance Industries Ltd
49. Infosys Ltd
50. Wipro Ltd
What is the meaning of Nifty?
Nifty means index of National Stock Exchange. Meaning Nifty 50 is a benchmark index of the stock market which shows the condition of the stock market.
How many companies are included in Nifty?
The top 50 companies of India are included in NSE 50 i.e. Nifty. Nifty50 index is made up of the 50 largest companies of the country. On the other hand, the top 100 companies of India are included in Nifty 100 and the top 200 companies of India are included in Nifty 200.
How to invest in Nifty?
You can invest money in Nifty through option trading, for this you have to buy serials of Nifty in lot size. Apart from this, you can also invest money in Nifty50 by buying Nifty bees ETF i.e. exchange traded fund.
Q 1. Which is the best company in Nifty 50?
Reliance Industries,
Tata Consultancy Services (TCS),
HDFC Bank,
Infosys,
Hindustan Unilever
these are best performing companies of Nifty 50. These are all big large cap companies which come under the category of blue chip stocks.
Q 2. Which Stock Has the Highest Weightage in Nifty 50?
Reliance Industries Company’s shares have the highest weightage (10%) in Nifty 50. After this come TCS, HDFC Bank and Hindustan Unilever.
Q 3. How Many Banks Are Listed in Bank Nifty?
There are 12 banks listed in Bank Nifty out of which HDFC Bank has the highest weightage. After this comes Kotak Mahindra Bank, ICICI Bank, SBI and Axis Bank etc.
Q 4. What is the Difference Between Share and Nifty?
The biggest difference between share and Nifty is that share is a part of a company whereas Nifty is an index made up of many shares. You can buy shares directly through the broker app whereas Nifty can be bought through option trading or ETF.
Q 5. Is It Safe to Invest in Nifty 50?
Yes, it is absolutely safe to invest money in Nifty 50 because by investing in Nifty you invest money in the Indian economy. Meaning, with the growth of our country’s economy, Nifty also grows and we all know that India is a growing economy, that is why investing in Nifty50 is completely safe.
Q 6. How Many Lots of Nifty Can I Buy?
You can buy as many lots of Nifty as you want but you have to buy at least one lot minimum. One lot size of Nifty consists of 75 shares, hence to invest money in Nifty index one has to buy at least 75 units.
Q 7. Who Runs Nifty?
Nifty is run by stock market investors, meaning buyers and sellers keep moving the price of Nifty up and down. If there are more buyers in the market today, Nifty will go up a few points and if there are more sellers in the market, Nifty will go down.
Q 8. How to Invest in Nifty 100?
You can buy index funds to invest in Nifty 100. There are some mutual funds or index funds in the stock market which have bought Nifty 100 stocks instead of Nifty50, if you want, you can invest in Nifty 100 by investing money in such index funds.
Q 9. What is the Number in Stock Market in India?
In the Indian stock market, a number is a value which tells the performance of the market. By moving up or down the numbers of Sensex and Nifty, we come to know about the rise and fall of the stock market.
Q 10. How Many Indices Are There in the Stock Market?
There are only two main indices in the stock market, Sensex and Nifty. Both these indices keep telling the price of the stock market. Nifty is an index of 50 companies of the National Stock Exchange while Sensex is an index of 30 companies of the Bombay Stock Exchange.
I hope you would have found this information useful on what is the meaning of Nifty. After reading this, you must have understood what Nifty is in the stock market.
