Nifty Next 50

The Nifty Next 50 Index includes 50 companies from the Nifty 100 after excluding Nifty 50 companies. It represents companies that fall next in the ranking based on the applicable index methodology. 

The index is operated and maintained by NSE Indices Limited. Its base date is November 3, 1996, with a base value of 1,000. The index symbol is NIFTY NEXT 50.

The Nifty Next 50 uses the free-float market capitalisation method. The calculation can be represented as: 

Index Value = Current Free-Float Market Capitalisation ÷ Base Market Capitalisation × Base Index Value 

Free-float market capitalisation considers only shares that are readily available for public trading. Stocks with a higher free-float market capitalisation have a higher weight in the index, subject to the index methodology.

The following are some key criteria used for selecting stocks: 

• Selection of stocks is made from Nifty 100, after excluding Nifty 50 stocks. 
• Stocks must fulfill all the necessary eligibility requirements. 
• The index contains 50 stocks. 
• Liquidity and trading requirements also form part of the selection process. 
• The index is reviewed and rebalanced twice a year. 
• Changes are implemented according to the prescribed index methodology. 

The Nifty Next 50 tracks the price movement of its 50 constituent stocks. Each stock has a weight based on its free-float market capitalisation. 

The index is reviewed twice a year. During these reviews, stocks may be added or removed based on the applicable selection rules. This allows the index composition to be updated as the eligible stock universe changes.

The following are some features of the Nifty Next 50: 

• Diversified Exposure: The index covers 50 stocks across different sectors. 
• Single Index Exposure: ETFs and index funds can provide exposure to the group of stocks through one product. 
• Market Tracking: The index provides a way to track the performance of companies outside the Nifty 50 but within the Nifty 100. 
• Portfolio Comparison: Its performance can be compared with other broad-market indices. 
• Historical Data: Index data from the long term can be used for analysing historical movements and returns. 

Nifty Next 50 is said to have had a 5-year CAGR of about 13.4% as of 17 August’ 2026. Past performance does not imply future performance. 

Nifty Next 50 index was launched on 24 December 1996, with a base date of 3 November ‘1996 and a base value of 1,000. It has been designed to measure 50 companies from the Nifty 100, after deducting the Nifty 50 companies. 

The index has undergone changes in its methodology over time. It currently uses the free-float market capitalisation method for calculating the index and determining constituent weights.

Investors can buy individual constituent stocks through a Demat account or use ETFs and index mutual funds that track the index. 

They are 50 eligible stocks from the Nifty 100 after excluding stocks that are part of the Nifty 50. 

Yes. Individual constituent shares can be traded on the stock exchange, subject to applicable trading and settlement rules. 

The Nifty Next 50 was launched on December 24, 1996. 

Individual stocks can be bought and sold based on applicable market trading and settlement rules. 

It consists of 50 companies from the Nifty 100 after removing the companies included in the Nifty 50. 

The index uses the free-float market capitalisation method to calculate its value and determine constituent weights. 

No. The Nifty Next 50 is a broad-market index and is not classified as a midcap index. 

The index contains 50 Nifty 100 companies that are not included in the Nifty 50. 

Yes. Nifty 50 constituents can change during periodic index reviews based on the applicable eligibility and selection rules. 

It is a mutual fund that aims to track the performance of the Nifty Next 50, subject to tracking differences and fund factors. 

A Nifty Next 50 Index Fund is a mutual fund that aims to track the Nifty Next 50 Index, subject to tracking differences and fund-related factors. 

These funds provide exposure to the Nifty Next 50 through one mutual fund. Costs, tracking differences and market risks should be considered. 

Nifty 50 tracks 50 companies, while Nifty Next 50 tracks 50 companies from the Nifty 100 that are outside the Nifty 50.

Stocks are selected from the Nifty 100 after excluding Nifty 50 stocks, based on the index's eligibility and selection rules. 

Stock prices, company earnings, sector movements, interest rates, economic conditions, global markets and institutional flows can affect the index. 

The index covers 50 stocks across different sectors. However, each stock can be affected by its own business and market conditions.