What is The Nifty Next 50?
The Nifty Next 50 is an Indian Stock Market Indice like the Nifty 50 and Sensex. It comprises of the 50 companies in the Nifty 100 that are not a part of the Nifty 50 Index.
Where the companies in the Nifty 50 are considered Blue Chip Companies because of their Market Cap, the constituents of the Nifty Next 50 are thought of to be the next up Blue Chip Companies.
Similar to how one can take part in being invested in the Nifty, there are also funds that allow one to invest in the Nifty Next 50 Index.
What are Nifty Next 50 Stocks?
Currently, the constituents, i.e. the Nifty Next 50 Stocks are:
- Idea Cellular
- Avenue Supermarts Ltd.
- Page Industries
- United Spirits
- United Breweries
- Cadila Health
- ICICI Lombard General Insurance Company Ltd.
- SBI Life Insurance Company Ltd.
- Berger Paints
- Bajaj Holdings
- Dabur India
- ICICI Prudential Life Insurance Company
- Divis Laboratories
- Bank of Baroda
- Pidilite Ind
- Aurobindo Pharma
- Oracle Finance
- HDFC AMC Ltd.
- The New India Assurance Company Ltd.
- Bandhan Bank Ltd.
- HDFC Life Insurance Company Ltd.
- Havells India
- Shree Cements
- Interglobe Avaition Ltd.
- Sriram Trans Fin
- Motherson Sumi
- Hindustan Zinc
- Godrej Consumer
- Petronet LNG
- Piramal Ent.
- Ashok Leyland
- General Insurance Corporation of India
- L&T Fin Holding
- Ibull HousingFin
For details on each of the stocks and the movement of the Index itself, visit this link.
Is The Nifty Next 50 Index Good?
Historically, the Nift Next 50 has outperformed the Nifty 50 in the long term. It is important to understand that the Nifty 50 comprises of companies that have already reached their maximum target audience and have none to very little room to grow. Whereas, companies in the Nifty Next 50 are those that are in their transition phase of becoming market leaders.
Companies that become market leaders provide their shareholders with the best returns. It is the hope that these companies will become future market leaders that have caused this index to perform well.
Another aspect of the Nifty Next 50 is that the index offers better diversification than the Nifty 50. The Nifty Next 50 comprises of 14 different sectors, with consumer goods haveing the most weightage.
Is Nifty Next 50 Large Cap?
No, the Nifty Next 50s constituents are a mix of Large Caps and Mid Caps. The Market Capitalization of The Nifty Next 50 is about 30,000 Crore v/s that of Nifty 50s which averages at about 65,000 Crore.
Nifty Next 50 Index Live
For a look at the Nifty Next 50 Index live, visit this link here.
Nifty Next 50 Returns
Since the Nifty Next 50 was first formed which was back in November of 1996, it has delivered an annual return of 17.2%. Comparing it with the country’s most famous benchmark index, it has provided an additional 5% return since the Nifty 50 has delivered an annualized return of 12.2%.
Nifty Next 50 Historical Data
Here is a picture of the Nifty Next 50 Historical Data alongside the Nifty 50 Data: