Everyone interested in the stock market, whether investing or not, knows about Nifty and especially about the index called Nifty 50, as it is one of the prime benchmarking indices. However, there is another index that tracks 50 more companies present in the Nifty 100 universe, and that is Nifty Next 50. 

In this article, we will be discussing the index, Nifty Next 50, and see how it helps investors and traders track the market. From its performance to how you can invest in this index directly, we will cover it all. 

NIFTY NEXT 50 Index – Overview & Constituents 

The Nifty Next 50 index is an index that tracks the top 50 companies out of the NSE 100 index after excluding the companies that are present in the Nifty 50 index. However, as of now, there are 51 companies present in this index. 

Here is a complete list of the companies present in the Nifty Next 50 index (as of 2 June 2025)

ABB India Ltd.	Indian Hotels Co. Ltd.
Adani Energy Solutions Ltd.	Indian Oil Corporation Ltd.
Adani Green Energy Ltd.	Indian Railway Finance Corporation Ltd.
Adani Power Ltd.	Info Edge (India) Ltd.
Ambuja Cements Ltd.	InterGlobe Aviation Ltd.
Avenue Supermarts Ltd.	JSW Energy Ltd.
Bajaj Holdings & Investment Ltd.	Jindal Steel & Power Ltd.
Bajaj Housing Finance Ltd.	LTIMindtree Ltd.
Bank of Baroda	Life Insurance Corporation of India
Bharat Petroleum Corporation Ltd.	Macrotech Developers Ltd.
Bosch Ltd.	Pidilite Industries Ltd.
Britannia Industries Ltd.	Power Finance Corporation Ltd.
CG Power and Industrial Solutions Ltd.	Punjab National Bank
Canara Bank	REC Ltd.
Cholamandalam Investment and Finance Company Ltd.	Samvardhana Motherson International Ltd.
DLF Ltd.	Shree Cement Ltd.
Dabur India Ltd.	Siemens Ltd.
Divi’s Laboratories Ltd.	Swiggy Ltd.
Dummy Siemens Ltd.	TVS Motor Company Ltd.
GAIL (India) Ltd.	Tata Power Co. Ltd.
Godrej Consumer Products Ltd.	Torrent Pharmaceuticals Ltd.
Havells India Ltd.	United Spirits Ltd.
Hindustan Aeronautics Ltd.	Varun Beverages Ltd.
Hyundai Motor India Ltd.	Vedanta Ltd.
ICICI Lombard General Insurance Company Ltd.	Zydus Lifesciences Ltd.
ICICI Prudential Life Insurance Company Ltd.

The stocks by weightage – 

Stocks	Weightage (%)
InterGlobe Aviation Ltd.	4.47
Hindustan Aeronautics Ltd.	4.04
Divi’s Laboratories Ltd.	3.59
Vedanta Ltd.	3.16
Indian Hotels Co. Ltd.	2.89
Cholamandalam Investment and Finance Company Ltd.	2.88
Tata Power Co. Ltd.	2.82
TVS Motor Company Ltd.	2.79
Britannia Industries Ltd.	2.78
Varun Beverages Ltd.	2.73

Sectoral Weightage 

Sectors	Weightage (%)
Financial Services	20.70
Fast Moving Consumer Goods	11.16
Capital Goods	9.43
Power	8.43
Consumer Services	8.33
Oil, Gas & Consumable Fuels	7.09
Automobile and Auto Components	6.84
Healthcare	6.00
Metals & Mining	4.70
Services	4.47
Realty	3.89
Construction Materials	3.27
Chemicals	2.04
Information Technology	2.00
Consumer Durables	1.65

Selection Criteria

Nifty Next 50 index selection criteria are – 

• All the stocks are from Nifty 100, after excluding Nifty 50 constituents
• Index constituents that are not available for trading in the future and the options segment (non-F&O segment) must have a cumulative weight not exceeding 10% on a quarterly rebalance date, and individually, these stocks’ weight must not exceed 4.5% as well.  

Factors Affecting the NIFTY NEXT 50 Index

The factors that affect the Nifty Next 50 index –  

• Global and Domestic market sentiment: The Nifty Next 50 index is affected by domestic as well as global cues that affect the constituent stocks’ pricing. If the global market is sluggish, it can affect the index and pull it down, and when the global market gives positive cues, the index can rise. It is the same with the domestic market sentiment as well. 
• Financial reports: When the constituent companies of the Nifty Next 50 index announce their financial returns, the index moves fast as the stock prices of the constituent stocks move significantly. If the financials of the constituting companies are positive, and as per anticipation or exceeded them, then the index might move up, while if the returns are not as good as they thought to be, or the constituting companies suffered loss during any quarter, or in a financial year, then the stock can drag the index down. 
• Corporate announcements: If the companies, which form the Nifty Next 50 index, get some new orders, or crack some deal, or anything positive comes their way, the corporate announcement can boost the market sentiment, and the stock prices of those companies can move up, taking the index higher. However, if something negative is announced, then the stock price of the constituent company may drag the index down as well. 
• Monetary Policies: Repo Rates by RBI and the NIFTY Next 50 Index are highly correlated. When the repo rate goes up in an economy, the loans become expensive, which leads to a decline in business activity, and thus the stock prices decrease, taking the index down, while rate cuts boost the business activity and thus market sentiment, which takes the index up. However, it depends on other factors as well, like inflation and other economic factors. 
• Corporate Activities: If the constituent companies announce dividends, bonus issues, and similar activities, then stock prices usually go up as the investors get excited, which boosts the index as well. 

NIFTY NEXT 50 Index Calculation Method

The Nifty Next 50 Index value is calculated using a free-float market capitalization.

• The current market price of the 50 stocks of the index is multiplied by the number of free-float shares, which excludes shares held by promoters, government, trusts, etc. This results in the weighted market cap of the stocks.  
• Then weighted market capitalization of all 50 stocks is taken into account and summed up. 
• Then the result is divided by the base period market capitalisation to derive the index value. 

Nifty Next 50 Index Value = (Current Market Cap or Weighted Market Cap/ Base Market Cap) *1000

Performance and Returns

Here are the returns for different periods – 

Period	Price Return (%)	Total Return (%)
YTD	-1.80	-1.56
1 Year	-1.13	-0.41
5 Years	22.64	23.60

Enjoy investing in the top stocks of the NSE Nifty 100 Universe with the Nifty Next 50 Index on the Shoonya App!

Risk and Volatility

The risk analysis of the Nifty Next 50 Index shows that it has a – 

• Standard deviation of 22.86 for 1 year, 17.79 for 5 years, and since inception it is 25.65
• Beta of 1.25 for 1 1-year period against the Nifty 50’s beta. Similarly, for 5 years it is 0.97 and since inception it is 0.96, making it a bit less volatile than the Nifty 50 in the long run. 
• Correlation against Nifty 50 is 0.85 for a year, 0.80 for 5 years, and 0.85 since inception.  

How to Invest in the NIFTY NEXT 50 INDEX?

You can invest in the Nifty Next 50 Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade Nifty Next 50 Index futures and options in the F&O section of Shoonya’s app. To do so, you have to add the index to your watchlist following these steps – 

• Open the Shoonya app.
• Head to the “Watchlist” tab located at the bottom of your screen.
• In the search bar, type “NIFTY IN” or “SENSEX IN” and add it to the watch list, and then you will be able to see the indices.
• Once you find your desired index, click on the add option given on the right side.
• Now you can see the index on the watchlist. 

Conclusion

The Nifty Next 50 Index offers a clear idea of how the market is working. It gives the other side of the market as most tracks Nifty 50 only; however, as the market is huge, so if one wants to delve deeper, this index can be a good tool.  

Nifty Next 50 Index | FAQs

Source: NSE

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.