“ The review of NIFTY 50 is undertaken semi-annually based on data for six months ending January and July. (reproduced from the above website’s content) According to material available on the NSE on the Nifty 50 index methodology, the index review frequency is as follows: Like all other Nifty-based indices, the Nifty 50 is reconstituted semi-annually in March and September. Besides, there are also derivative instruments linked to Nifty 50 that are traded at the Singapore Exchange (SGX), which is also a closely watched indicator in Indian markets. The NSE also has futures contracts and options based on the Nifty 50. NIFTY 50 is computed in four currencies namely Indian Rupee (INR), US Dollar (USD), Australian Dollar (AUD) and Canadian Dollar (CAD). The weight given to each stock is based on the free-float market cap size it commands.Īs a bellwether index, the Nifty 50 is used as a benchmark for local and global managed portfolios, index-based derivatives and has passive products such as ETFs and index funds that track it. Those that fall below the 50 get eliminated from the index and those that move up get added to the index. What this means is that only the top stocks in terms of market cap remain in the index. The Nifty 50 is a market cap-based index, like many of the top global indices. These stocks are also the most liquid securities and together account for over two-thirds of the free-float market cap of traded securities in Indian exchanges. This index tracks the performance of the 50 large bluechip companies traded in the NSE based on free-float market capitalisation. The NIFTY 50 is a diversified 50 stock index that represent key sectors of the economy.