Description

NSE circular providing detailed information about the Nifty 50 index methodology, constituents, performance statistics, and semi-annual rebalancing process as of September 30, 2025.

Summary

NSE has released detailed information about the Nifty 50 index as of September 30, 2025. The Nifty 50 is a well-diversified 50-company index computed using free float market capitalization method, reflecting overall market conditions. The index comprises 50 constituents across 15 sectors with Financial Services having the highest weightage at 36.47%. The index is rebalanced semi-annually with cut-off dates of January 31 and July 31.

Key Points

  • Nifty 50 contains 50 constituents computed using free float market capitalization methodology
  • Base date: November 03, 1995 with base value of 1000
  • Launch date: April 22, 1996
  • Calculation frequency: Real-time
  • Index rebalancing: Semi-annually (January 31 and July 31 cut-off dates)
  • Top 3 constituents by weight: HDFC Bank (12.87%), ICICI Bank (8.52%), Reliance Industries (8.18%)
  • Financial Services sector dominates with 36.47% weightage
  • Index variants available: Nifty50 USD, Nifty 50 Total Returns Index (Gross and Net), Nifty50 Dividend Points Index
  • P/E ratio: 21.76, P/B ratio: 3.37, Dividend Yield: 1.35%

Regulatory Changes

No new regulatory changes introduced. This is an informational circular providing current index composition and methodology.

Compliance Requirements

Eligibility Criteria for Stock Selection:

  • Market impact cost must be 0.50% or less during last six months for 90% of observations (basket size Rs. 100 Million)
  • Companies must be allowed to trade in F&O segment
  • Minimum listing history of 1 month as on cut-off date

Index Rebalancing:

  • Semi-annual rebalancing with cut-off dates of January 31 and July 31 each year

Important Dates

  • Data as of: September 30, 2025
  • Semi-annual rebalancing cut-off dates: January 31 and July 31
  • Historical base date: November 03, 1995
  • Launch date: April 22, 1996

Impact Assessment

Market Impact: Low - This is an informational circular providing transparency on index composition and methodology. No immediate action required from market participants.

Operational Impact: Low to Medium - Fund managers and index fund operators should note the current composition and upcoming rebalancing dates for portfolio management purposes.

Performance Metrics (as of September 30, 2025):

  • QTD Price Return: -3.55%
  • YTD Price Return: 4.09%
  • 1 Year Price Return: -4.65%
  • 5 Year CAGR: 16.95%
  • Since Inception CAGR: 11.30%
  • 1 Year Standard Deviation: 12.95%

Sector Concentration: High concentration in Financial Services (36.47%), followed by Information Technology (9.91%) and Oil, Gas & Consumable Fuels (9.79%). Top 10 constituents represent significant index weight with HDFC Bank alone at 12.87%.

Usage: The index serves as a benchmark for fund portfolios and is used for launching index funds, ETFs, and structured products.

Impact Justification

Informational circular about Nifty 50 index composition and methodology. Important for market participants and fund managers but does not introduce new regulatory requirements or operational changes.