NIFTY 50 Vs NIFTY Next 50: To know the movement of the markets, we often use indices as indicators. In the Indian markets, we primarily look at two indices – NIFTY and SENSEX to understand the movement of the market for the day.

Even from an investing perspective, Large Cap Index Funds which mirror an index have become famous as well. Such funds allow you to invest in funds that hold the same stocks as the indices, which means the fund quite literally tracks the markets.

In this article, we’re going to describe and compare two important indices – NIFTY 50 Vs NIFTY Next 50. 

What Is The NIFTY 50 Index?

To improve transparency in the market, NSE was created in 1992 as the second stock exchange in India, after BSE. The NIFTY 50 Index is a benchmark for the 50 largest listed Indian stocks in the markets.

The NIFTY 50 Index is one of the two major indices that are widely used to represent the movement of the markets. The other major index is BSE’s SENSEX. 

The companies that make up the NIFTY 50 are some of the biggest in the country, and some are market leaders in their respective industries.

All the companies don’t have equal weightage in the NIFTY 50 Index as it is based on free-float market capitalization. 

Top 10 Constituents & Weightage Of NIFTY 50

S. No.Company NameWeight
1Reliance Industries9.84%
2HDFC Bank9.53%
3ICICI Bank7.66%
8Larsen Toubro3.43%
9Axis Bank3.32%
10Kotak Bank3.32%

Source – Zerodha

As you can see, the top 10 companies that are a part of NIFTY 50 make up for almost 59 percent of the entire Index. These 50 companies are large-cap industry leaders, from financial services, engineering, and tech to FMCG and banking. 

Movement Of NIFTY 50

Over time, despite volatility and various macroeconomic issues, and even after the threat of the pandemic, the market has moved upwards.

The chart for the NIFTY 50’s movement shows that it has gained substantially since its inception in the nineties, and extreme volatility in the recent three years (2020 to 2023).  

What Is The NIFTY Next 50 Index?

Take the NIFTY 100 Index, and exclude the 50 companies that are part of NIFTY 50, you get the NIFTY Next 50 Index. It is also humorously dubbed as NIFTY JR on Trading View.

NIFTY Next 50 represents 10 percent of the free float market capitalization of the stocks listed on the NSE (As Of March 29, 2019). 

Similar to NIFTY 50, each of the constituent stocks of NIFTY NEXT 50 has varying weights. Companies with bigger market capitalization have a larger weight than smaller stocks in the index. 

Top 10 Constituents & Weightage Of NIFTY Next 50

S. No.Company NameWeight
1D Mart4.33%
2LTI Mindtree3.71%
3Pidilite Industries3.05%
5Tata Power3%
6Bharat Electronics2.95%
7Godrej Consumer Products2.92%
10Bank Of Baroda2.69%

Source: Zerodha

Movement Of NIFTY Next 50

Similar to NIFTY 50, NIFT Next 50 was created in the nineties. The index represents the next big 50 companies on the stock market. NIFTY NEXT 50 is currently at 38,177.10 points, quite far away from its 52-week high of 45,509.70 points.

But on a longer time frame, you will see that the index has grown substantially since its inception. 

Bonus Content – NIFTY 100

We’ve covered the NIFTY 50 and NIFTY NEXT 50, but this article feels incomplete without mentioning NIFTY 100. This index is the sum of NIFTY 50 and NIFTY NEXT 50, making it a large basket of the top 100 large-cap companies of the Indian stock market.

This index includes both active and inactive shares (held by the promoters and Govt) when calculating market capitalization. 

While this Index does include the same companies as NIFTY 50 and NIFTY NEXT 50, it doesn’t mean the companies have the same weightage here. 

Weightage Of Top 10 Companies of NIFTY 100

S. No.Company NameWeight
2HDFC Bank7.81%
4ICICI Bank6.41%
9Kotak Bank2.77%
10Axis Bank2.61%

Source – NIFTY Indices

While NIFTY 100 has the same constituents as NIFTY 50, you can observe that the weights are different. This is because of the link between the company’s market capitalization to its weightage. A higher market cap means a higher weight in the NIFTY 100 index. 

Because of the market caps of different companies, they all have different weights in the index. Overall, NIFTY 100 includes companies in 17 different sectors, but few of them take the top few spots in terms of weightage.

This includes Financial Services, IT, and Consumer goods, as the companies that have a larger market capitalization come under these sectors.

Also Read: List of Gaming Companies Listed In Indian Stock Market!

In Closing

That’s all for our article on NIFTY 50 Vs NIFTY Next 50. We hope you got a better understanding of two very important indices of the Indian stock market. To learn more about NIFTY, visit the NSE website, as it’ll give you a clearer understanding of how indices operate. Happy Investing!

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