The Nifty Next 50 is an index in the Indian stock market. It is also called junior Nifty. It consists of the 50 companies that follow the Nifty 50 on the National Stock Exchange of India (NSE), but aren’t part of the Nifty 50 index itself. It’s a list of promising companies that are expected to grow and potentially join the Nifty 50 in the future. The Nifty Next 50 provides investors with exposure to a broader range of stocks beyond the top 50 by market capitalization and it offers opportunities for diversification and potential growth.
Table of Contents
When did Nifty Next 50 start?
The Nifty Next 50 index was introduced on January 1, 1997. Its base date was set to November 3, 1996, with a base value of 1,000. Initially, it started with a base capitalization of 0.43 trillion.
Top Sectors in Nifty Next 50
| SECTOR | Weight(%) |
|---|---|
| Financial Services | 23.76% |
| Capital Goods | 11.91% |
| Consumer Services | 11.57% |
| Fast Moving Consumer Goods | 10.62% |
| Oil, Gas & Consumable Fuels | 6.50% |
| Power | 6.07% |
| Automobile and Auto Components | 5.71% |
| Chemicals | 4.59% |
| Construction Materials | 3.90% |
| Metals & Mining | 3.72% |
| Realty | 3.18% |
| Consumer Durables | 2.98% |
| Services | 2.79% |
| Healthcare | 2.71% |
What is Nifty Next 50 companies?
There are 50 stocks listed in the Nifty Next 50 index that are just next to the Nifty 50 companies in terms of market capitalization. These stocks might get included in the Nifty 50 index in the near future.
Top 10 Companies of Nifty Next 50
| COMPANY | WEIGHTAGE |
|---|---|
| Trent Limited | 4.80% |
| Bharat Electronics Limited | 3.98% |
| Tata Power Co. Ltd. | 3.68% |
| Hindustan Aeronautics Ltd. | 3.43% |
| Indian Oil Corporation Ltd. | 3.39% |
| DLF Ltd. | 3.18% |
| Power Finance Corporation Ltd. | 3.12% |
| REC Ltd. | 3.08% |
| InterGlobe Aviation Ltd. | 2.79% |
| TVS Motor Company Ltd. | 2.76% |
Can I directly buy Nifty Next 50?
No, you cannot buy the Nifty Next 50 index directly like stocks. However, you can buy derivatives of the Nifty Next 50, such as futures and options, which the NSE has launched on April 24, 2024.
Alternatively, you can buy stocks of Nifty Next 50 companies through a registered broker. You cannot trade an index directly; instead, you can trade its derivatives like futures and options.
Where can I trade Nifty Next 50 options?
The NSE has launched the monthly futures and options of the Nifty Next 50 index on April 24, 2024. You can buy its options through a registered broker, such as Zerodha. However, before that, you must have a demat account to trade in the Indian stock market. If you don’t have one, open your demat account first.
Weekly options might be launched in the future.
Conclusion
The Nifty Next 50, also known as the Junior Nifty, is an index that includes companies that might be included in the Nifty 50 index in the future. It comprises the top companies in India by market capitalization from the 51st position onwards. Investors can consider these companies to diversify their portfolios.