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Financial Markets Indian Economy

Nifty 50 Companies

Firstly, the list of Nifty 50 companies is not constant. Secondly, there is a periodical reshuffling in the list of Nifty 50 Companies. The methodology for creating Nifty 50 Index is known as weighted average. A listed company is also known as a share or an Equity and it is a type of an asset. Moreover a collection of such shares is known as an Index.

Popular Indices

  1. NSE Nifty 50
  2. BSE Sensitive Index of Sensex – made up of 30 Companies

If there are more companies in an index then it is considered more composite. For example in order to gauge the growth of Indian economy Nifty 50 has less weightage then Nifty 500.

NSE Indices Nifty 50 and Indices
Nifty Indices

An index of top large cap companies represents the barometer of the economic activity. Therefore indices are tracked in India and around the world. Two of the most popular index in India are Nifty 50 and BSE Sensex. The following is the list of 50 large cap listed companies that makes the Nifty 50 Index.

  1. Tata Consultancy Services
  2. Infosys
  3. HCL Technologies
  4. Wipro
  5. Tech Mahindra
  6. Reliance Industries
  7. Bharti Airtel
  8. State Bank of India
  9. HDFC Bank
  10. HDFC Limited
  11. Bajaj Finance
  12. Bajaj Finserv
  13. ICICI Bank
  14. Axis Bank
  15. Kotak Mahindra Bank
  16. Indusind Bank
  17. SBI Life
  18. HDFC Life
  19. ITC
  20. Tata Consumers Limited
  21. Nestle India
  22. Britania
  23. Hindustan Unilever Limited
  24. Titan
  25. Oil and Natural Gas Corporation Limited
  26. Indian Oil Corporation Limited
  27. Coal India Limited
  28. National Thermal Power Corporation
  29. Power Grid Corporation
  30. Bharat Petroleum Corporation Limited
  31. Ultratech Cemet
  32. Shree Cement
  33. Grasim Industries
  34. Tata Steel
  35. Hindalco
  36. JSW Steel
  37. Larsen & Toubro
  38. Asian Paints
  39. Maruti Limited
  40. Mahindra and Mahindra
  41. Tata Motors
  42. Eicher Motors
  43. Hero Motocorp
  44. Bajaj Auto
  45. Adani Port and Special Economic Zone
  46. United Phosphorus Limited
  47. Sun Pharma
  48. Cipla
  49. Divis Laboratory
  50. Dr Reddy Laboratory

Why it is important to remember the names of all the Nifty 50 companies?

Firstly, rembering the name of a company is handy to follow the news. For example the share of shree cement falls to a 52 week low. Then this information should automatically register in your mind that yes shree cement is a Nifty 50 company.

Moreover an investor should also follow the news of Nifty 50 companies very closely. Because chances of creating wealth is more in Nifty 50 in comparison to midcaps and small caps.

How to remember the list of Nifty 50 Companies?

The easiest way to remeber name is to group the companies into meaningful segments. Therefore withing Nifty 50 we have created small groups.

Nifty 50 companies from 1 – 7

These companies numbered 1 to 7 are from the Tertiary or Service sector. More specifically from Information Technology and Networking industry. Imagine a highly productive brain and look at the list of the 7 companies given below.

Brain of the Indian Economy Nifty 50 Companies
Brain of the Indian Economy
  1. Tata Consultancy Services
  2. Infosys
  3. HCL
  4. Wipro
  5. Tech Mahindra
  6. Reliance Industries
  7. Bharti Airtel

WITATA INTE BHARE HCL – Brain of NIFTY

Companies form 8 – 16

Imagine a purse or a wallet where you keep all your money. The companies from 8 – 16 represents your wallet. These companies are also from service sector providing banking services to all of us.

wallet of the Nifty 50 Companies
wallet of Indian Economy
  1. State Bank of India
  2. Kotak Mahindra Bank
  3. Indusind Bank
  4. Axis Bank
  5. ICICI Bank
  6. Bajaj Finance
  7. HDFC Bank
  8. Bajaj Finserv
  9. HDFC Limited

SB KOINAX IC BAJAHD BAJAHD – Wallet of Nifty

We are going to leave the insurance sector as there are only two companies to remember – HDFC Life and SBI Life.

Trick for FMCG 19-24 companies

Firstly, we enter into a zone where we deal with the products and commodities for end consumers. Secondly, after services FMCG is a sector which is delivering a steady result. Since India is a developing country FMCG and the consumption story of India is going to be the focus for the next 10 or 20 years to come.

fmcg companies
FMCG of India
  1. ITC
  2. Tata Consumers Limited
  3. Titan
  4. Hindustan Unilever Limited
  5. Britania
  6. Nestle India

ITTATI HIBRINE – FMCG of Nifty. You can make your own formulas as well

Companies from 25-30

Most of the India’s energy requirements are fulfilled from outside by importing petroleum products. Therefore India is shifting towards becoming self reliant. The green hydrogen power plant announced by IOC in Mathura refinery is a welcoming step towards our shift.

Energy sector of India
Energy sector of India
  1. Oil and Natural Gas Corporation Limited
  2. Indian Oil Corporation Limited
  3. Coal India Limited
  4. National Thermal Power Corporation
  5. Bharat Petroleum Corporation Limited
  6. Power Grid Corporation

OIL INKO NA BHAPO – Nifty Energy

Even though Reliance Industries is also a very big player in Oil refining and marketing. But since Reliance has shifted its focus on Technology, Digital Platforms, Networking and Retail sector and therefore Reliance is now a service sector company.

Smallcase of Nifty 50 Companies

Firstly, if you are observing the Indian markets carefully a lot of new investment products have come up. One such product is smallcase.

What is smallcase?

A smallcase is nothing but a small mutual fund that a person can create for herself/himself. Creating a smallcase is an easy and cost effective way of investing because of two reasons. Firstly, there is only 100 Rs charge for creating a smallcase. Secondly, you can sell an entire smallcase or sell it in parts, without incuring any additional charges.

Why should we create a smallcase?

A smallcase has all the qualities of a mutual fund. Moreover it is very economic therefore we should create a smallcase. There is a very good channel on YouTube that helps us in creating a smallcase.

How should we create a smallcase of Nifty 50 Companies?

In order to create a small case we will have to open a demat account. Not all demat accounts support smallcases but Angel Broking and Zerodha supports it. The video shared below is in english language which shows how to create a smallcase.

Firstly, our main objective of classification of the Nifty 50 companies into various sectors was for our understanding of the index composition. Secondly, during a fall and subsequent turn around we cannot predict that only a particular company will perform well. Therefore it is logical to diversify our investments into an entire sector.

Smallcase explained by Shashank

Memory Exercise for you

The remaining 20 Companies from Nifty 50 are from Cement, Capital Goods, Metals, Automobile and Pharmaceutical sectors. This is an exercise for the reader to give us some good suggestions of the short hands or formulas of the remainig 20 companies.

We in anyway are not promoting rot learning but yes some cache memory can be very helpful in financial markets.

By Kanishka Singh Rathore

  1. Engineer
  2. Financial Planner
  3. Editor

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