Nifty 100

About NIFTY 100

NIFTY 100 is an index that represents the top 100 companies listed on the National Stock Exchange of India (NSE). It is part of the broader NIFTY index family which includes various indices reflecting different segments of the Indian stock market.

NIFTY 100 has large-cap companies from various sectors providing investors and market participants with a snapshot of the overall performance of the top 100 companies in the Indian stock market. These companies are selected based on their market capitalisation, liquidity, and other criteria.

The index serves as a benchmark for fund managers, traders and investors to monitor the performance of their portfolios and make investment decisions. It is widely used to track the general trend of the Indian stock market and is considered a key indicator of the country's economic health.

What is the NIFTY 100 index?

NIFTY 100 is a diversified index comprising 100 stocks that represent significant sectors of the economy. It includes the top 100 companies selected based on their total market capitalisation from the NIFTY 500. The index is designed to look at the performance of companies with large market capitalisations. The NIFTY 100 index monitors the collective performance of two indices- the NIFTY 50 and the NIFTY Next 50.

History

NIFTY 100 index was launched on December 1, 2005, establishing the base year as 2003 with a base value of 1,000. The index undergoes semi-annual rebalancing.

Sector-Wise Representation

The financial services sector had a substantial weight of 32.67%, as the year 2023 ended. Following closely was the information technology sector, contributing 11.40% to the index.

The oil, gas & consumable fuels sector had a weightage of 10.59% and the fast-moving consumer goods sector also contributed significantly, holding a weightage of 9.88%. The automobile and auto components sector had a 6.43% weightage. The metals and mining sector stood at at 3.73%, healthcare at 3.68%, construction at 3.67% and power at 3.54%. The consumer durables, construction materials, telecommunication and consumer services sectors had contributions at 3.15%, 2.44%, 2.3% and 2.3% respectively.

Companies and Weightage

HDFC Bank Limited held the highest weightage at 11.31%, as the year 2023 ended. Reliance Industries Limited followed closely with a weight of 7.70%.

Other top companies included ICICI Bank Limited with a weightage of 6.16%, Infosys Limited at 4.85% and Larsen and Toubro Limited at 3.67%. ITC Limited held a weight of 3.61%, while Tata Consultancy Services Limited and Axis Bank Limited contributed 3.39% and 2.69% respectively.

Kotak Mahindra Bank Limited and Bharti Airtel Limited also played notable roles with weightage of 2.47% and 2.3% respectively.

Selection Criteria

For inclusion in the NIFTY 100, a company must meet the following criteria:

• It should be part of the Nifty 500.

• The Investible Weight Factor (IWF) of the stock must be at least 0.10 (equivalent to 10% free float). IWF is a unit of floating stock that is available for trading and is not held by entities

• The 6-month average free-float market capitalisation of the stock should be a minimum of 25% of the 6-month average full market capitalisation of the smallest existing index constituent (before the index review) in the NIFTY 100 as of the cutoff date.

• The non-F&O (Futures and Options) stocks can be considered for inclusion, only if during the past 6 months as of the cutoff date, the instances of the stock hitting the upper or lower price circuit do not exceed 20% of the total trading days over the same period.