NIFTY Next 50

The NIFTY Next 50 and the NIFTY 50 together comprise the NIFTY 100, which represents the top 100 companies trading on the National Stock Exchange of India based on full market capitalisation. The Nifty Next 50 Index represents 50 companies from Nifty 100 after excluding the Nifty 50 companies.

The Nifty Next 50 Index represents about 10% of the free float market capitalization of the stocks listed on NSE as on September 29, 2023. The total traded value for the last six months September 2023 of all index constituents is approximately 11.2% of the traded value of all stocks on NSE.

Methodology

The level of the index reflects total free float market value of all the stocks in the index relative to a particular base market capitalization value. This methodology is similar to the one employed to add stocks to NIFTY 50.

Stocks are added to the index based on the following criteria:

1. Represents 50 companies from Nifty 100 after excluding the constituents of Nifty 50.
2. Cumulative weight of index constituents that are not available for trading in F&O segment (Non F&O stocks) is capped at 10% on a quarterly rebalance dates.
3. Weightage of non F&O stocks in the index are individually capped at 4.5% on quarterly rebalance dates.

The index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 every year and average data for the previous six months from the cut-off date is considered to filter stocks. A notice of 4 weeks from the date of change is given to market participants so that they can prepare for any changes.