Mini project on nifty 50

UNDER THE GUIDANCE OF:

DR. Leelambeshwar Singh sir

(Associate professor)
 ABSTRACT

India’s premier index, the NIFTY 50 over years has

successfully become the ‘stock of the nation’ helping investors gauge the pulse
of Indian capital market. It has lived up to its core purpose of providing a fair
representation of the Indian equity market focusing on portfolio diversification,
liquidity and replicability. With 50 blue chip companies as a part of its
composition, the NIFTY 50 represents 67% of the total free float market
capitalization of all listed equity companies on NSE as on March 29, 2019.
NIFTY 50 stocks account for 53% of the total liquidity of all listed equity stocks
on NSE based on 6 month average as on March 29, 2019. The NIFTY 50
portfolio provides a sector exposure pattern that is broadly similar to one
provided by all listed equity stocks on NSE.

NIFTY 50 tracks the performance of top 50 large cap companies selected

based on Free Float Market capitalization (subject to other index criteria) to
most popular global indices – and as a part of its semiannual review, removes
stocks that would have fallen in market cap and adds emerging stocks that
would have increased in market cap thereby increasing the exposure of the index
to emerging stocks and sectors. Thanks to this methodical and dynamic rules-
based portfolio review approach, the NIFTY 50 total return index delivered
returns of 15.98% per annum during the previous 10 year period (as on March
29, 2019). Interestingly, these returns also converge with India’s GDP growth
which has shown a 10-year CAGR of 13% in nominal terms (Gross Domestic
Product at Current Prices) over the same period (FY09 - 19E) – 3 validating the
long-term behavior of equity markets delivering returns aligned with the income
growth trajectory of the nation.

INTRODUCTION TO NIFTY50:

The NIFTY 50 index is National Stock Exchange of India’s

benchmark stock market index for Indian equity market. Nifty is owned and
managed by India Index Services and Products (IISL).

 The base year is taken as 1995 and the base value is set to 1000.

 Nifty is calculated on 50 stocks actively traded in the NSE

 50 top stocks are selected from 24 sectors.

NSE has a total market capitalization of more than US$ 2.27 trillion,
making it the world’s 11th-largest stock exchange as of April 2018.

NSE’s index, the NIFTY 50, is used extensively by investors in India and
around the world as a barometer of the Indian capital market. Just as the Sensex
which was introduced by the Bombay stock exchange (BSE), Nifty is a major
stock index in India introduced by the National stock exchange (NSE). NIFTY
50 Index is computed using free float market capitalization method. NIFTY 50
can be used for a variety of purposes such as benchmarking fund portfolios,
launching of index funds, ETFs, and structured products. NSE and BSE are the
two most important pillars of Indian stock trading. NSE- National Stock
Exchange .BSE- Bombay Stock Exchange .NIFTY is the major stock index
introduced by the NSE.

  The word NIFTY originates from 2 words, `National' and 'Fifty'.

NIFTY basically means the index of the 50 most actively traded stocks from
across all sectors. NIFTY represents the top stocks of the NSE and when we talk
about NIFTY going up, it means that all the heavyweight stocks of NSE across
all sectors are moving up. Most of the stock trading in the country is done
through NSE and BSE.

NIFTY consists of top 50 companies from 24 different sectors.

NIFTY is computed from the performance of top stocks from different sectors.
Some mutual funds use NIFTY as a benchmark. The performance of the mutual
funds is assessed against the performance of the NIFTY. On NSE, futures and
options are available for trading with the NIFTY as an underlying index.

NIFTY is calculated by using the market capitalization weighted

method according to which weights are assigned according to the size of the
company. It is used for a variety of purposes such as benchmarking fund
portfolios, index based derivatives and index funds. NIFTY 50 is owned and
managed by India Index Services and Products Ltd. (IISL). IISL is India's
specialized company focused upon the index as a core product.

Trader get margin to trade on NIFTY. Trader can do day trading that
is intraday trading as well as carry forward till the expiry period of trader
contract minimum one month expiry and maximum three month. If you feel that
market is going up then you can buy NIFTY contract and if you feel like that is
market is falling then you short sell NIFTY and later buy it to cover up your
positions. Trader can square off at any time and at any price due to very high
volumes are traded in NIFTY future contract.
Profile literature

Nifty50: It’s an average of 50 top stocks from 24 sectors.

Nifty has various sector indices as well which are as follows:-

Bank Nifty: It’s an average of 12 banking stocks.

Nifty Auto: It’s an average of 16 auto sector stocks.

Nifty Energy: It’s an average of 10 Energy sector stocks.

Nifty Financial Services: It’s an average of 15 stocks from fiancé sectors like

Bajaj finance, LIC housing finance etc.

Nifty FMCG: It includes 15 FMCG stocks like Britannia, ITC, Marico and 12
more such stocks.

Nifty IT: 10 It companies are included in this indices to get an average number.

Nifty Media: 15 media companies like Hathway, Network18, Dish TV and 12

more companies are included to get an average number to compute Nifty Media.

Nifty Metal: Metal companies such as Hind Zinc, Hind copper are included to
compute metal nifty indices.

Nifty Pharma: To judge the sentiment of pharma sector, top 10 pharma

companies like Sunpharma, Cadila and more 8 companies are included to
compute Nifty Pharma.

Nifty PSU Bank: It includes 12 public sector banks like PN, SBI, Union Bank
etc.

Nifty Realty: It has companies from real estate sector such as DLF, Prestige,
and Unitech etc.

Nifty Private Bank: Just like PSU bank, it comprises of large private sector
banks.
Here is the list of 50 companies consisting of Nifty as of
sep ’2019:

Adani Ports HDFC Bank Ltd. NTPC Ltd.

and Special
Economic
Zone Ltd.

Ambuja Hero MotoCorp Ltd. Oil & Natural Gas Corporation Ltd.
Cements
Ltd.

Asian Paints Hindalco Industries Ltd. Power Grid Corporation of India

Ltd. Ltd.

Aurobindo Hindustan Petroleum Corporation Reliance Industries Ltd.

Pharma Ltd. Ltd.

Axis Bank Hindustan Unilever Ltd. State Bank of India

Ltd.

Bajaj Auto Housing Development Finance Sun Pharmaceutical Industries Ltd.

Ltd. Corporation Ltd.

Bajaj I T C Ltd. Tata Consultancy Services Ltd.

Finance
Ltd.

Bharat ICICI Bank Ltd. Tata Motors Ltd.

Petroleum
Corporation
Ltd.

Bharti Indiabulls Housing Finance Ltd. Tata Motors Ltd DVR

Airtel Ltd.

Bharti Indian Oil Corporation Ltd. Tata Steel Ltd.

Infratel Ltd.
Bosch Ltd. IndusInd Bank Ltd. Tech Mahindra Ltd.

Cipla Ltd. Infosys Ltd. UPL Ltd.

Coal India Kotak Mahindra Bank Ltd. UltraTech Cement Ltd.

Ltd.

Dr. Reddy’s Larsen & Toubro Ltd. Vedanta Ltd.

Laboratorie
s Ltd.

Eicher Lupin Ltd. Wipro Ltd.

Motors Ltd.

GAIL Mahindra & Mahindra Ltd. Yes Bank Ltd.

(India) Ltd.

Maruti Zee Entertainment Enterprises Ltd.

Suzuki
India Ltd.
NIFTY 50`s Equity stock watch…
 Traded Traded 52 Week 52 Week 365 Days % 30 Days %
Symbol Open High Low LTD Volume(lacs) Value(crs) High Low Change Change
NIFTY 50 10,872.80 10,885.15 10,804.85 10,842.00 2,403.60 7,694.10 12,103.05 10,004.55 -4.71 -1.92
TATASTEEL 348 356 345.35 355.5 71.94 252.64 647.6 322.2 -42.33 -1.13
BAJFINANCE 3,407.00 3,464.50 3,394.65 3,449.40 10.8 371.69 3,762.00 1,912.20 32.43 3.65
JSWSTEEL 217.55 222.7 217.25 221.25 36.58 80.53 427.55 201.75 -46.28 -2.19
GAIL 133.1 135.2 131.65 134.95 55.33 73.78 197.28 119.5 -63.78 6.01
BAJAJFINSV 7,221.00 7,308.00 7,196.00 7,290.00 1.39 100.69 8,580.00 4,955.00 11.3 -1.17
VEDL 146 148.6 145.1 147.95 51.33 75.6 246.9 125.3 -37.02 2.53
M&M 525 530 518.2 530 11.62 61.03 976.7 502.55 -44.26 1.82
SBIN 277.2 278.9 274.4 277.9 96.55 267.39 373.8 247.4 -2.59 -3.12
KOTAKBANK 1,450.00 1,472.85 1,449.90 1,464.45 7.49 109.82 1,555.90 1,002.20 19.02 -2.13
GRASIM 705.85 711.2 701.5 708.65 2.98 21.06 1,082.00 680.05 -33.47 -3.24
ASIANPAINT 1,542.15 1,551.50 1,535.00 1,545.45 3.24 49.96 1,622.50 1,118.00 18.09 -2.58
TATAMOTORS 123.05 125.9 120.5 123.15 307.74 377.32 264.1 106 -52.68 1.95
BPCL 379.7 382.1 369.05 372.2 93.97 353.41 421.7 238.55 2.25 7.26
HINDALCO 198.4 200.55 198.05 199.65 26.16 52.11 259.75 171.1 -17.28 10.21
BAJAJ-AUTO 2,798.00 2,819.00 2,750.10 2,795.90 3.29 91.37 3,149.95 2,420.00 -2.26 2.58
HCLTECH 1,059.65 1,065.00 1,050.65 1,064.35 3.65 38.69 1,187.60 920 -1.3 0.03
INFRATEL 251.3 253 249.25 252.15 15.88 39.81 335 238.7 -5.51 -1.23
HEROMOTOCO 2,590.00 2,617.00 2,517.00 2,587.55 8.11 208.24 3,380.00 2,225.60 -17.28 -1.67
IOC 127.6 128.4 125.3 126.1 47.82 60.56 170.75 105.25 -19.45 0.24
AXISBANK 645.5 649.7 641.55 644.8 45.08 291.22 827.75 534.55 3.01 -5.87
TCS 2,126.40 2,142.50 2,113.15 2,136.80 7.89 167.92 2,296.20 1,784.35 3.02 -1.21
ULTRACEMCO 3,910.10 3,937.95 3,885.05 3,925.70 1.62 63.43 4,904.95 3,260.45 -4.33 -5.59
TECHM 710 713.75 701.9 709.9 5.97 42.3 846.5 607.15 -7.51 5.9
RELIANCE 1,204.95 1,216.30 1,197.20 1,203.05 32.4 391.11 1,417.50 1,016.40 -1.86 -6.93
LT 1,320.10 1,328.40 1,313.30 1,318.55 8.78 115.86 1,607.00 1,182.50 -1.95 -2.49
INDUSINDBK 1,340.00 1,349.00 1,323.70 1,337.00 16.32 218.12 1,889.30 1,267.25 -28.77 -7.31
NTPC 121.55 121.75 119.65 121.3 24.96 30.1 146.17 106.67 -29.58 2.02
WIPRO 245.4 245.4 243.3 244.7 9.65 23.57 301.6 222.01 -25.83 -2.94
DRREDDY 2,739.80 2,751.80 2,715.15 2,743.95 1.5 40.98 2,964.00 1,872.95 6.83 9.36
ADANIPORTS 365 368.3 364.2 366 6.43 23.53 430.6 292.1 -3.89 2.41
POWERGRID 200.5 201.65 198.25 200.75 21.47 43 216.25 172.5 -0.57 -3.04
MARUTI 6,165.00 6,211.80 5,986.60 6,135.00 10.9 662.01 8,659.70 5,446.05 -28.14 2.55
HDFC 2,010.00 2,012.40 1,982.40 1,997.40 17.34 346.19 2,357.85 1,644.50 6.31 -5.52
TITAN 1,163.00 1,168.00 1,150.55 1,158.70 7.75 89.72 1,340.90 732.3 40.71 6.41
HINDUNILVR 1,839.50 1,843.95 1,818.65 1,831.75 3.22 58.86 1,889.00 1,477.20 14.1 0.6
IBULHSGFIN 436 438.7 426.1 429.05 48.28 208.39 1,222.00 405 -64.27 -20.08
ICICIBANK 405.45 405.45 396.5 400.35 76.16 304.86 443.9 294.8 22.92 -5.44
HDFCBANK 2,217.30 2,224.15 2,198.10 2,205.05 13.77 304.26 2,503.30 1,885.00 10.68 -0.08
ZEEL 338.15 342.3 334.5 336.2 13.19 44.45 506.9 288.3 -29.26 -3.4
YESBANK 66 66.45 61.7 64.8 961.33 617.46 328.95 53.2 -79.66 -15.46
INFY 829.9 832.95 824 827 14.64 121.31 847 599.85 13.92 6.35
SUNPHARMA 423.9 424.6 414.25 417.9 22.36 93.72 668.25 344.55 -35.33 -1.9
ITC 237.7 238.05 235.1 235.4 46.71 110.4 310 234.65 -22.05 -6.42
BHARTIARTL 341.6 344.15 336.5 336.8 14.05 47.73 378.75 253.99 -11.84 -6.7
EICHERMOT 16,500.00 16,554.95 15,842.00 16,125.00 0.96 154.89 29,800.00 15,200.00 -45.64 -1.3
UPL 565 565 542.75 557.15 22.19 122.27 709.05 388.1 -22.99 2.79
CIPLA 461.4 462.8 454.35 455.5 6.96 31.82 678.45 449.2 -31.49 -4.28
COALINDIA 198.45 199.2 193.4 194.5 21.75 42.57 289.2 177.7 -29.26 -2.24
ONGC 129.7 129.95 126.05 126.45 59.5 76.25 185.4 115.55 -26.35 0.12
BRITANNIA 2,668.70 2,668.70 2,588.20 2,617.65 4.6 120.1 3,316.00 2,300.00 -56.53 5.62
OBJECTIVES OF NIFTY STOCKS:

NSE has helped transform India in various ways.

1. By providing an electronic trading interface that replaced the traditional

outcry trading method.
2. By enhancing transaction efficiency and transparency.
3. By providing every investor or trader with equal opportunity irrespective
of background, location or transaction size.
4. By providing a multi-asset exchange platform that global investors prefer.
5. By providing technology robustness, translating into a high systemic
uptime in line with the best global standards.
6. By maintaining market integrity and safety through effective regulations,
supervision and risk management. Helping take India confidently into the
future.
7. The main objective of the stocks is wealth maximization.
8. Every stock try to give investor surplus.
9. Stocks always market value must be high.
10. Stock consists of fundamentally strong.
11.Always all stocks must be bullish trend.
12.Every stock volatile is very low.
13.Every investor must trust on every stock.
14.Stock consists of shares, bonds, debentures.
15.To continue to be a leader, establish global presence and facilitate the
financial wellbeing of people.
16.Committed to improving the financial wellbeing of people
25 years. During this period, NSE did not just provide a
transaction exchange. It became a synonym for trust.
Scale
Exchange (NSE) is the largest multi – asset exchange stock exchange in India
and the second largest in the world (by number of equity trades in 2018). The
exchange has been the largest in India in terms of total and average daily
turnover for equity shares every single year since 1995.

Regulatory role and governance:

NSE’s Regulatory group comprising of Surveillance and Investigation, Member

Inspection and Enforcement, Investor Services and Listing Compliance works
proactively towards enhancing trust in markets through effective governance
and supervisory practices.

Share

NSE began operations in 1994 and enjoys leading market shares by total
turnover of 91.12% in equity cash trading, 99.99% in equity derivatives trading,
53.70% in currency derivatives trading, 68.81% in interest rate derivatives
trading and 78.44% in ETFs trading for fiscal 2019

Close to customers

NSE is headquartered at Exchange Plaza, Mumbai, India with client-facing

regional offices in Mumbai, Kolkata, Delhi, Chennai and Ahmedabad. In the last
few years, NSE commissioned offices in Indore, Kanpur, Pune, Jaipur, Rajkot,
Cochin, Hyderabad, Bangalore, Patna, Lucknow and Vadodara. NSE has
presence in all the major cities of the country
Technology-driven

NSE launched electronic screen-based trading in 1994, derivatives trading (in

the form of index futures) in 2000 and internet trading also in 2000, the first
time in India. NSE’s pan-India, high-speed network is supported by around
1,95,000 terminals (count of terminals include all activated terminals by the
Exchange and as reported by the trading member for CM, FO, CD and CO
segments) as of March 31, 2019

Integrated

NSE has a fully-integrated business model comprising exchange listings, trading

services, clearing and settlement services, indices, market data feeds, technology
solutions and financial education offerings. NSE also oversees compliance by
trading and clearing members and listed companies with the rules and
regulations of SEBI and the exchange. NSE delivers systemic reliability and
performance through a culture of technology innovation and investment

Inclusive

NSE believes that the scale and breadth of its products and services, sustained
leadership positions across multiple asset classes in India and globally enable it
to be highly responsive to market demands and changes and deliver innovation
in both trading and non-trading businesses to provide high-quality data and
services to market participants and clients.

Convenience

NSE facilitates trading in cash market and derivatives market. NSE’s clearing corporation and
subsidiary NSE Clearing Limited (NCL) provides clearing and settlement services for the exchange to
support members throughout the lifecycle of a trade. NCL was the first clearing corporation
established in India.

MILESTONES

2018 - 2019 Milestone

Launched Commodity Derivatives segment, go Bid Mobile app for government

securities and Tri-Party Repo of Corporate Debt Securities.

Weekly option on NIFTY 50 was launched

E-voting for corporates NSE derivatives access was extended to US clients

Signs Post Trade Technology and Strategic Partnership

Agreement with Nasdaq MoU with London Stock Exchange Group

2017 - 2018

Launched currency derivatives on Non-FCYINR pairs

Launched NIFTY SME EMERGE Index and 72 fixed income and three hybrid
indices

Entered into a MOU with The Colombo Stock Exchange (CSE).

2016 - 2017

Promoted NSE IFSC, the International Stock Exchange in India’s first IFSC
SEZ at GIFT City Gandhinagar
2015 -2016

Launched NIFTY 50 index futures trading on TAIFEX

Launched platform for sovereign gold bond issuances

Launched an electronic bookbuilding platform for the private placement of debt

securities

2014- 2015

Entered into a memorandum of understanding to enhance cooperation with the

London Stock Exchange Group Renamed...CNX NIFTY to NIFTY 50

2013- 2014

Launched NMFII platform for mutual funds

Launched NBF II segment for interest rate futures

Launched trading on India VIX index futures

Commenced trading on NIFTY 50 (then known as CNX NIFTY) on the Osaka

Exchange

2012- 2013

Launched the New Debt Segment (NDS

2011- 2012

Commenced trading in index futures and options contracts on the FTSE 100
index
Launched SMEspecific EMERGE platform for the listing and trading of
securities of SMEsc

2010 - 2011

Commenced trading in index futures and options on global indices, namely the
S&P 500 and Dow Jones Industrial Average.

2009- 2010

Launched NOW platform for mobile devices.

Launched trading in currency options.

2008-2009

Launched Mutual Fund Service System (MFSS)

Conclusion:

 Fiscal 2019 witnessed overall global slowdown particularly in the second

half of the year. This trend largely emerged in the context of the overhang
arising from trade tensions between USA and China, sluggish economic
performance of some of the significant countries in Europe and Asia and
the resultant overall weakening of the financial market sentiment.
 it is heartening to note that NSE has continued to maintain its leadership
position both domestically as well as globally
 The innate strength of the Indian economy continued to be robust with
sustained GDP growth rate of ~7% and the Indian economy continued to
retain its status as the fastest growing major economy of the world.
 NIFTY50, our flagship index, continued to evince significant traction
among its peer group, globally. As on March 31, 2019, NIFTY indices
continued with their market leadership position with 20 index funds and
48 ETFs in India linked to these indices. The total Assets under
Management (AUM) of ETFs (equity and debt) and Index Funds linked to
NIFTY indices in India was over H1 Lakh Crores with NSE’s market
share of about 78%. The total AUM of international ETFs linked to
NIFTY indices was US$1,100 million as on March 31, 2019.
 Further, NSE introduced Weekly Options Contracts on NIFTY 50 and
NIFTY IT Index in Future and Options segment w.e.f. February 11, 2019.
Addition of weekly options contract will add flexibility and support a
variety of trading strategies. Participants will be able to hedge more
efficiently against market movements resulting from economic data
releases, corporate announcements, particularly the financial results
announcements or market events taking place in specific time frames…..!!