Nifty Next 50 stocks with weights for October 2020

Published: October 7, 2020 at 8:13 pm

List of Nifty Next 50 stocks with index weightage and market capitalization are tabulated for October 2020. These are 50 companies from NIFTY 100 after excluding the NIFTY 50 companies representing about 10-11% of the free-float market capitalization of the stocks listed on NSE.

To be included in the Nifty Next 50, a stock must be part if the Nifty 100 index and in turn the NIfty 500 index. A Stock will be included in the Nifty 100 (primary criterion) if it is among the top 90 in terms of full market capitalisation.

It will also be included if its full market capitalisation is 1.50 times of the last constituent in NIFTY 100. Stocks will be removed from the NIfty 100 if their rank based on full market capitalisation falls below 110 or if it is removed from the NIFTY
500. The index has a base date of Jan 1st 1997, and a base value of 1000

Nifty Next 50 Calculation

From May 4th 2009, the index was created using the float-adjusted market capitalization-weighted method. This is computed by multiplying the market capitalization with an investible weight factor (IWF). The IWF is a 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 Jan 1st, 1997
Index Value = (Current Market Value / Base Market Capital )* Base Index Value

Here: Base Market Capital: Rs 0.43 trillion and Base Index Value: 1000. In comparison, The base capital of Nifty 50 is Rs 2.06 trillion.

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.

Top Ten Nifty Next 50 Stocks (Oct 2020)

The top 5 stocks constitute 19.81% of the total weight (compare this with 44% for the Nifty – Nifty 50 stocks with weights for October 2020 ) and the top 10, 36.24% (62.6% for the Nifty.

Security NameIndustryWeightage (%)
Avenue Supermarts Ltd.MISCELLANEOUS4.37
Tata Consumer Products Ltd.TEA AND COFFEE3.99
Adani Green Energy Ltd.POWER3.84
Dabur India Ltd.PERSONAL CARE3.84
ICICI Lombard General Insurance Company Ltd.FINANCE3.77
Info Edge (India) Ltd.COMPUTERS – SOFTWARE3.67
Godrej Consumer Products Ltd.PERSONAL CARE3.65
Lupin Ltd.PHARMACEUTICALS3.22
Aurobindo Pharma Ltd.PHARMACEUTICALS2.98
Pidilite Industries Ltd.CHEMICALS – SPECIALITY2.91
Biocon Ltd.PHARMACEUTICALS2.65
Colgate Palmolive (India) Ltd.PERSONAL CARE2.54
Marico Ltd.PERSONAL CARE2.5
Bandhan Bank Ltd.BANKS2.46
Havells India Ltd.ELECTRICAL EQUIPMENT2.26
Petronet LNG Ltd.GAS2.2
ICICI Prudential Life Insurance Company Ltd.FINANCE2.17
Ambuja Cements Ltd.CEMENT AND CEMENT PRODUCTS2.12
United Spirits Ltd.BREW/DISTILLERIES2.05
Bharti Infratel Ltd.TELECOMMUNICATION – EQUIPMENT1.99
Berger Paints India Ltd.PAINTS1.89
Piramal Enterprises Ltd.FINANCE1.88
Motherson Sumi Systems Ltd.AUTO ANCILLARIES1.83
Torrent Pharmaceuticals Ltd.PHARMACEUTICALS1.83
Hindustan Petroleum Corporation Ltd.REFINERIES1.8
Indraprastha Gas Ltd.GAS1.8
Muthoot Finance Ltd.FINANCE1.63
Bajaj Holdings & Investment Ltd.FINANCE1.61
HDFC Asset Management Company Ltd.FINANCE1.61
InterGlobe Aviation Ltd.TRAVEL AND TRANSPORT1.6
SBI Cards and Payment Services Ltd.FINANCE1.59
Bosch Ltd.AUTO ANCILLARIES1.56
Alkem Laboratories Ltd.PHARMACEUTICALS1.5
Siemens Ltd.ELECTRICAL EQUIPMENT1.5
Larsen & Toubro Infotech Ltd.COMPUTERS – SOFTWARE1.42
United Breweries Ltd.BREW/DISTILLERIES1.41
Cadila Healthcare Ltd.PHARMACEUTICALS1.35
Container Corporation of India Ltd.TRAVEL AND TRANSPORT1.33
Power Finance Corporation Ltd.FINANCIAL INSTITUTION1.33
DLF Ltd.CONSTRUCTION1.26
Procter & Gamble Hygiene & Health Care Ltd.PERSONAL CARE1.25
Abbott India Ltd.PHARMACEUTICALS1.17
NMDC Ltd.MINING1.01
Oracle Financial Services Software Ltd.COMPUTERS – SOFTWARE0.95
Adani Transmission Ltd.POWER0.89
Hindustan Zinc Ltd.METALS0.71
Bank of BarodaBANKS0.66
Punjab National BankBANKS0.5
General Insurance Corporation of IndiaFINANCE0.4

Source: NSE monthly reports

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