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NIFTY 500: Difference between revisions
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{{Infobox exchange | {{Infobox exchange | ||
|name = NIFTY 500 | |name = NIFTY 500/S&P CNX 500 | ||
|type = [[Stock market index]] | |type = [[Stock market index]] | ||
|city = [[Mumbai]] | |city = [[Mumbai]] | ||
|country = [[India]] | |country = [[India]] | ||
|owner = [[National Stock Exchange of India]] | |owner = [[National Stock Exchange of India]] | ||
}} | |homepage={{URL|www.nseindia.com/}}|currency=[[Indian Rupee]]|mcap=}} | ||
'''NIFTY 500''' is [[India]]’s first broad-based [[stock market index]] of the Indian stock market.<ref>{{Cite web|last=India|first=NSE|date=|title=NSE NIFTY 500|url=https://www1.nseindia.com/products/content/equities/indices/nifty_500.htm|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref> The NIFTY 500 index represents about 96% of | '''NIFTY 500''' is [[India]]’s first broad-based [[stock market index]] of the Indian stock market.<ref>{{Cite web|last=India|first=NSE|date=|title=NSE NIFTY 500|url=https://www1.nseindia.com/products/content/equities/indices/nifty_500.htm|url-status=live|archive-url=|archive-date=|access-date=|website=}}</ref> It contains top 500 listed companies on the NSE. The [[NIFTY 500]] index represents about 96.1% of free float market capitalization and about 96.5% of the total turnover on the National Stock Exchange ([[National Stock Exchange of India|NSE]]).<ref>{{cite web|url=http://finance.indiamart.com/markets/nse/sp_cnx_500.html |title= Current Status S&P CNX 500|publisher=Indiamart}}</ref> | ||
NIFTY 500 companies are disaggregated into 72 [[Industry (economics)|industry]] indices. Industry weights in the index reflect industry weights in the market. For example, if the [[banking]] sector has a 5% weight in the universe of stocks traded on the NSE, banking stocks in the index would also have an approximate representation of 5% in the index. | NIFTY 500 companies are disaggregated into 72 [[Industry (economics)|industry]] indices.<ref>{{cite web |title=Ministry of Corporate Affairs |url=http://www.iepf.gov.in/IEPF/FAQs-INDICES.html |website=www.iepf.gov.in |publisher=Ministry of Corporate Affairs}}</ref> Industry weights in the index reflect industry weights in the market. For example, if the [[banking]] sector has a 5% weight in the universe of stocks traded on the [[National Stock Exchange of India|NSE]], banking stocks in the index would also have an approximate representation of 5% in the index.<ref>{{cite web |title=Introducing a New Broad-based Index of Financial Development |url=https://www.imf.org/external/pubs/ft/wp/2016/wp1605.pdf |publisher=www.imf.org}}</ref>NIFTY 500 can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and other structured products. | ||
== Other Notable Indices == | |||
[[NIFTY 50]]: Top 50 listed companies on the NSE. A diversified 50 stock index accounting for 13 sectors of the Indian economy. | |||
[[NIFTY Next 50]]: Also called NIFTY Juniors. Represents 50 companies from NIFTY 100 after excluding the NIFTY 50 companies. | |||
NIFTY 100:<ref>{{Cite web |title=NIFTY 100 |url=https://www.nseindia.com/market-data/live-market-indices}}</ref> Diversified 100 stock index representing major sectors of the economy. NIFTY 100 represents top 100 companies based on full market capitalization from NIFTY 500. | |||
NIFTY 200:<ref>{{Cite web |title=NIFTY 200 |url=https://www.nseindia.com/market-data/live-market-indices}}</ref> Designed to reflect the behavior and performance of large and mid market capitalization companies. | |||
== Index Methodology == | |||
Eligibility Criteria for Selection of Constituent Stocks: | |||
All equity shares listed on the NSE are eligible for inclusion in the NIFTY indices. Convertible stock, bonds, warrants, rights, and preferred stock that provide a guaranteed fixed return are not eligible for inclusion in the NIFTY indices. | |||
To be considered for inclusion in [https://www1.nseindia.com/content/indices/ind_nifty_500.pdf NIFTY 500 index], companies must form part of eligible universe. The eligible universe includes: | |||
i. Companies ranked within top 800 based on both average daily turnover and average daily full market capitalization based on previous six months period data | |||
ii. Companies traded for at least 90% of days during the previous six months period | |||
iii. Securities will be included if rank based on full market capitalization is among top 350 | |||
iv. Securities will be included if full market capitalization is 1.50 times of the last constituent in NIFTY 500 | |||
v. Securities will be excluded if rank based on full market capitalization falls below 800 | |||
vi. Eligibility criteria for newly listed security is checked based on the data for a three-month period instead of a six-month period | |||
'''Index Re-Balancing''': Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change. | |||
'''Index Governance''': A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee. | |||
==References== | ==References== | ||
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{{DEFAULTSORT:SandP Cnx 500}} | {{DEFAULTSORT:SandP Cnx 500}} | ||
[[Category:S&P Dow Jones Indices]] | [[Category:S&P Dow Jones Indices]] | ||
[[Category:Year of establishment missing]] | |||
[[Category:National Stock Exchange of India]] | |||
[[Category:Indian stock market indices]] | [[Category:Indian stock market indices]] | ||