Nifty 50 stocks with index weightage and market capitalization is tabulated for June 2020. These 50 out of the 1600 companies traded on the NSErepresenting 65% its float-adjusted market capitalization. The index started trading in April 1996.

To be included in the Nifty, a stock must have an impact cost of less than 0.5% during the last six months for 90% of the observations for a portfolio of Rs. 10 crores. This means that large quantities of stocks can be bought or sold without too much disparity between buying and asking price. This is a good way to measure market liquidity.

Thus the 50 stocks of Nifty represent the most liquid stocks on the NSE weights as per their free-float market capitalization. The base date is November 3, 1995 (1st anniversary of the NSE) and the base value is 1000 with a base capital of Rs 2.06 trillion.

NIfty 50 Calculation

From 26th 2009, the index was created using float-adjusted market capitalization-weighted method. This is computed by multiplying the market capitalization with an investible weight factor (IWF). The IWF is measure of shares that are freely available for trading.

IWF = [Total Shares– (A+B +C +D +E +F)] /Total Shares

where:

• A= Shareholding of promoter and promoter group
• B= Government holding in the capacity of a strategic investor
• C= Shares held by promoters through ADR/GDRs.
• D= Equity held by associate/group companies (cross-holdings)
• E= Employee Welfare Trusts
• F= Shares under lock-in category

Market Capitalization = Shares outstanding X Price
Free Float Market Capitalization = Market Capitalization X IWF

The level of the Index reflects the total market value of all the stocks in the Index relative to the base period November 3, 1995
Index Value = (Current Market Value / Base Market Capital )* Base Index Value

Here: Base Market Capital: Rs 2.06 trillion and Base Index Value: 1000

Stocks with the highest free-float market cap have the highest weight in the index.

​Index Level= SUM of (​Price ×Free Float Market Capitalization)​​/Divisor

The SUM is carried out over all the 50 stocks. The divisor is proprietary to the NSE tacking corporate actions into account and changes each time a stock is replaced.

Nifty Sector weights (%) June 2020

1. Financial services 34.38
2. Oil & gas 14.76
3. It 14.17
4. Consumer goods 13.46
5. Automobile 5.52
6. Telecom 3.53
7. Pharma 3.03
8. Construction 2.66
9. Metals 2.58
10. Cement & cement products 2.31
11. Power 2.10
12. Services 0.60
13. Fertilisers & pesticides 0.54
14. Media & Entertainment 0.36

Nifty 50 stocks with weights for June 2020

Source: NSE monthly reports