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Tel: +91 22 26598386
Fax: +91 22 26598120
Index
Methodology
Nifty Next 50
The Nifty Next 50 Index comprises of the next rung of liquid
securities after those forming part of Nifty 50. It may be useful
to think
of the Nifty 50 and the Nifty Next 50 as making up the 100 most
liquid stocks in India.
The maintenance of the Nifty 50 and the Nifty Next 50 are
synchronized so that the two indices will always be disjoint sets;
i.e. stock
will never appear in both indices at the same time.
Nifty Next 50 is computed using free float market capitalization
method wherein 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. Nifty Next 50 Index can be used
for a
variety of purposes such as benchmarking fund portfolios,
launching of index funds, ETFs and structured products.
Index Variants: Nifty Next 50 Total Returns Index.
Eligibility Criteria for Selection of
Constituent Stocks
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 Govenance:
A professional team at IISL manages
Nifty Next 50 Index. There is a three-tiergovernance structure
comprising the
Board of Directors of IISL, the Index
Policy Committee, and the Index
Maintenance Sub-Committee.
For inclusion in the index, the security
should have traded at an average impact
cost of 0.5% or less during the last 6 months
for 90% of the observations for a basket size
of Rs.50 lakhs (Rs.5 million).
Companies forming part of Nifty 50 index
are excluded from the index.
The company must have demonstrated a
trading frequency of at least 90 % in the last
six months.
The company should have an investable
weight factor (IWF) of at least 10%.
All constituents of the Nifty Next 50 Index
must have a minimum listing record of 6
months.
A company which comes out with an IPO
will be eligible for inclusion in the index, if
it fulfills the normal eligibility criteria for
the index for a 3 month period instead of a 6
month period.
Bloomberg:
Thomson Reuters:
NIFTYJR Index
NSMIDCP
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December 31, 2015
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Nifty Next 50December 31, 2015
Statistics
Returns (%)
QTD YTD 1 Year 5 YearsSince
Inception
1 Year 5 YearsSince
Inception
1.14 6.96 6.96 10.30 16.97
Sector Representation
SectorWeight
(%)
FINANCIAL SERVICES 22.27
CONSUMER GOODS 21.86
AUTOMOBILE 11.10
PHARMA 10.28
ENERGY 9.78
INDUSTRIAL MANUFACTURING 6.31
TELECOM 5.62
METALS 4.06
FERTILISERS & PESTICIDES 2.33
HEALTHCARE SERVICES 1.97
SERVICES 1.73
IT 1.43
CHEMICALS 1.25
Top 10 constituents by weightage
Company’s NameWeight
(%)
Aurobindo Pharma Ltd. 4.16
Bharti Infratel Ltd. 4.06
Indiabulls Housing Finance Ltd. 3.99
Indian Oil Corporation Ltd. 3.72
Eicher Motors Ltd. 3.65
Britannia Industries Ltd. 3.10
Godrej Consumer Products Ltd. 2.91
Dabur India Ltd. 2.75
LIC Housing Finance Ltd. 2.71
United Spirits Ltd. 2.68
Methodology
No. of Constituents
Launch Date
Base Date
Base Value
Calculation Frequency
Index Rebalancing
Free Float Market Capitalization
50
January 01, 1997
November 04, 1996
1000
Real-time Daily
Semi-Annually
Std. Deviation *
Beta (Nifty 50)
Correlation (Nifty 50)
18.08
0.97
0.86
17.98
0.90
0.85
28.55
0.97
0.85
Portfolio Characteristics
Fundamentals
P/E P/B Dividend Yield
22.14 2.84 1.62
#
Disclaimer: All information contained herewith is provided for
reference purpose only. IISL ensures accuracy and reliability of
the above information to the best of its endeavors. However,
IISL
makes no warranty or representation as to the accuracy,
completeness or reliability of any of the information contained
herein and disclaim any and all liability whatsoever to any person
for anydamage or loss of any nature arising from or as a result of
reliance on any of the information provided herein. The information
contained in this document is not intended to provide any
professional advice.
# QTD,YTD and 1 year returns are absolute returns.Returns for
greater than one year are CAGR returns.
* Average daily standard deviation annualised
