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The Nifty 100 Index was introduced by the National Stock Exchange (NSE) to represent the performance of the top 100 large-cap companies listed in India. It was designed to offer a broader benchmark compared to the Nifty 50, capturing a more diversified view of India’s equity market. The index includes companies from various sectors, ensuring that sectoral dominance doesn’t skew overall market trends.
Initially, the index was seen as an extension of the Nifty 50, allowing for better evaluation of large-cap investments. Over time, Nifty 100 gained relevance among institutional and retail investors for its balanced exposure. With changes in the economy, its composition has been reviewed periodically to reflect market realities and maintain transparency.
Nifty 100 provides a wider representation of large-cap companies in India, going beyond the scope of the Nifty 50. It enables investors and analysts to track the performance of a more diversified set of firms. This helps in forming strategies that are less concentrated and more aligned with macroeconomic developments.
The index also plays an important role in product structuring by mutual funds and other market-linked instruments. It helps in developing ETFs and index funds that replicate the broader market movement. For market observers, the Nifty 100 acts as a tool to understand how large companies are collectively performing.
The Nifty 100 index is calculated using the free-float market capitalization method. This means only the shares available for public trading are considered, excluding promoter holdings. The higher the market cap and liquidity of a company, the more weight it holds in the index. The index is reviewed semi-annually based on eligibility criteria set by NSE.
Each company in the Nifty 100 must meet parameters such as average daily turnover, market value, and listing history. Changes are made to the index based on these reviews, ensuring that it stays aligned with the actual market landscape. This makes it an evolving and responsive market indicator.
Nifty 100 can be accessed through financial portals, stock market platforms, and the official website of the National Stock Exchange (NSE). It is regularly updated in real-time during trading hours, providing current market data for analysts and investors. Financial news outlets also provide insights and data based on the Nifty 100 movements.
Investors can indirectly participate in the performance of the Nifty 100 through index-based mutual funds or exchange-traded funds (ETFs). These financial instruments are structured to mirror the holdings and weightings of the index. Many trading platforms also provide performance charts and historical data for analysis.
A mutual fund house launches a large-cap fund tracking the Nifty 100. This fund selects stocks in proportion to their weight in the index. As the fund mirrors the Nifty 100 composition, it moves in line with the broader performance of these 100 companies. Investors in such funds gain exposure to large Indian firms without needing to select individual stocks.
Suppose a major sector like IT sees steady growth while others remain neutral. The Nifty 100 index, with diversified sector holdings, adjusts accordingly. The movement of the index reflects the mixed performance across sectors, giving investors a stable benchmark with which to compare their portfolio.
The Nifty 100 Index is a benchmark index representing the top 100 companies listed on the National Stock Exchange (NSE) in India. This index provides a comprehensive view of the Indian equity market, including both large-cap and mid-cap companies. By tracking the Nifty 100 index, investors can gain insights into the performance of a broad spectrum of the market. The Nifty 100 stock selection is based on market capitalization and liquidity, ensuring the inclusion of the most significant and actively traded stocks.
The Nifty 100 share price movements provide valuable information about the overall market trends and the economic health of various sectors. This index is widely used by investors, fund managers, and analysts as a benchmark for portfolio performance and to launch index funds, ETFs, and other investment products.
The Nifty 100 Index is calculated using the free-float market capitalization method. Here’s the simplified formula:
Nifty 100 Index Value = {∑(Stock Price × Number of Free-float Shares) / Base Market Capital} × Base Index Value
This method ensures that the index reflects the market value of the constituent stocks based on their free-float market capitalization, providing an accurate measure of market performance.
The Nifty 100 includes the top 100 companies listed on the NSE, selected based on their market capitalization and liquidity.
Here are the top 5 stocks in the Nifty 100:
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