The NIFTY Next 50 index is a diversified large-cap index comprising 50 companies listed on the National Stock Exchange (NSE) of India. The Next in the name comes from the fact that this list is a continuation of the NIFTY 50 Index. If their stocks perform well, they can become a part of the Nifty 50 Index in the near future.  In this article, we will cover more about this index.

Constituents of the Nifty Next 50 Index

From January 2002 to March 2021, a total of 52 stocks were promoted from the NIFTY Next 50 Index to the NIFTY 50 Index. Companies like Tata Consumer Products, SBI Life Insurance Company, Divi’s Laboratories, and many more have been promoted between 2020 and 2021.

On the flip side, if  Nifty 50 stock performs poorly, it is downgraded to the Nifty Next 50 Index. And if a stock on the Nifty Next 50 performs badly, it is removed from the index entirely.

The weightage of the 50 stocks is not equal. It is decided by the free-float market cap of the stocks. Here are the top 10 stocks in the index based on individual weight:

Company Name Weight (%)
Trent Ltd. 4.80
Bharat Electronics Ltd. 3.98
Tata Power Co. Ltd. 3.68
Hindustan Aeronautics Ltd. 3.43
Indian Oil Corporation Ltd. 3.39
DLF Ltd. 3.18
Power Finance Corporation Ltd. 3.12
REC Ltd. 3.08
InterGlobe Aviation Ltd. 2.79
TVS Motor Company Ltd. 2.76

The index undergoes rebalancing twice a year, on a semi-annual basis, with cut-off dates set for January 31 and July 31 of each year.

Companies may be included or excluded during this period. This addition or subtraction is preceded by a public announcement 4 weeks before the change takes effect.

The index is quite diverse. This offers you a chance to dip your toes in multiple investment sectors through a singular investment. The top 10 sectors this time around are:

Sector Weight(%)
Financial Services 23.76
Capital Goods 11.91
Consumer Services 11.57
Fast Moving Consumer Goods 10.62
Oil, Gas & Consumable Fuels 6.50
Power 6.07
Automobile and Auto Components 5.71
Chemicals 4.59
Construction Materials 3.90
Metals & Mining 3.72
Realty 3.18
Consumer Durables 2.98
Services 2.79
Healthcare 2.71


While financial stocks have constantly been on the rise, due to the diversified options, the index gives you a great opportunity to diversify your portfolio through exposure in multiple sectors.

Why Invest in the Nifty Next 50 Index?

The Nifty Next 50 Index has some advantages and features that make it a great investment option. They are:

  • Portfolio diversification: As you saw, the index provides you with a broad range of exposure to multiple companies and sectors. This helps diversify your portfolio even through a single investment.
  • Potential to enter the Nifty 50 Index: The companies on the Nifty Next 50 Index have the potential to enter the Nifty 50 Index, yielding significant results for you as an investor.
  • No need for active management: Investing through ETFs and index funds can help you sit back, relax, and keep the profits rolling. It’s best suited for you if you prefer a long-term, buy-and-hold strategy.


The Nifty 50 Index is an excellent choice for you if you are looking to explore the growing large-cap segment of the Indian market. You have multiple investment options with varying risk appetites and financial goals. You can analyze the nifty next 50 chart on the TradingView Free platform with Dhan to make an informed decision.

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