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Nifty Indices: Everything You Need To Know

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Here’s an interesting fact: as of March 31, 2023, over 350 indices are managed under the brand Nifty, including Nifty 50, which is closely tracked by investors globally. And it’s worth noting that more than 75% of the AUM in domestic Indian ETFs and index funds are benchmarked against these indices.

This statistic above shows that a sizable portion of the market relies on the Nifty family of indices to guide their investment strategies. In this article, we will delve deeper into this index, including the various indices and how they are helping investors increase their investment returns.

The Nifty Overview

Nifty indices are managed by NSE Indices Ltd., a subsidiary of the National Stock Exchange of India Ltd., set up in May 1998 to provide index-related services for the Indian capital market.

It was the first specialized company in India that focused on an index as its core product, covering all the economic sectors in both equity and debt markets and providing relevant market data to market participants for equity and derivatives trading. NSE Indices manages over 350 indices in 13 different equity and fixed-income categories.

The following are different types of Nifty index categories:

  • Broad-based Index
  • Sectoral Index
  • Thematic Index
  • Strategy Index
  • G-Sec Index
  • Sovereign Green Bond Index
  • SDL Index
  • Corporate Bond Index
  • Municipal Bond Index
  • Money Market Index
  • Target Maturity Index
  • Fixed-Income Aggregates Index
  • Multi-asset Index

Evolution of Nifty Indices- History and Milestones

These indexes are very young compared to their global counterparts. For instance, the world’s most extensive index based on the market capitalization of their constituents- the Dow Jones Industrial Average was first introduced on May 26, 1896. Similarly, S&P Global was launched in 1957, and Nasdaq 100 was established in 1985.

While its Indian counterpart, the BSE Sensex, considered the pulse of India’s domestic stock market, was first introduced on January 1, 1986.

Launch of Nifty 50

On April 22, 1998, NSE Ltd. launched its first index, the Nifty50, comprising 50 large and liquid stocks listed on the NSE. This index was initially known as the CNX Nifty. Over the years, it has emerged as one of India’s most tracked equity indexes globally. Moreover, the index has become one of India’s largest financial products through constant innovations.

On June 12, 2000, NSE commenced trading Nifty50 Index Futures, followed by the launch of Nifty Index Options on June 4, 2001. The derivatives are traded on the National Stock Exchange (NSE), Singapore Stock Exchange (SGX), and Chicago Mercantile Exchange (CME).

NSE Indices Ltd.

NSE Ltd. established NSE Indices Ltd as a joint venture with CRISIL Ltd. in May 1998 To strengthen its index offering. However, in August 2013, CRISIL Ltd. exited the JV and sold its 49% stake to NSE Strategic Investment Corporation Limited.

Expanding Index Offerings

NSE Indices continued to bring innovation into its index offerings and services by launching many new index categories. Apart from equity indices, fixed-income indices like the Corporate Bond indices, G-Sec Indices, and many more indexes were introduced over the years.

Trading in Bank Nifty Index Derivatives was also introduced and is currently one of the market’s most actively traded index derivatives.

How are Nifty Indexes Constituted?

These Indices use a variety of methodologies for index construction and reconstitution. Let’s see how it does it.

Nifty: Equity Indexes

The stocks in Nifty equity indexes are selected based on the free-float market capitalization methodology. For instance, Nifty50 includes 50 large-cap stocks listed on NSE and selected based on their free-float market capitalization.

The market capitalization of any stock is calculated by multiplying the total number of outstanding shares by the stock’s market price. However, because not all shares are available for trading publicly, this method does not reflect the true market capitalization of the stock.

In the free-float market capitalization method, privately-owned shares, such as the promoters’ stake, are subtracted from the total outstanding shares because they are not easily traded. Then, the remaining shares are multiplied by the stock’s current price to determine the stock’s free-float market capitalization.

Free-float Market Cap =(Outstanding shares – Promoters’ Stake)x Stock CMP

This method removes companies for index consideration with a small-equity base that can be easily manipulated.

Another factor considered is the stock’s liquidity, meaning how easily the stock can be bought and sold without incurring high transaction costs. It is measured via Impact Cost. It represents the cost of executing a transaction in the exchange. And a stock can be included in the Nifty50 and other indices only when its impact cost is less than 0.50% during the last six months for 90% of the trading days.

    Impact Cost = (Actual Buy Price - Ideal Price) / Ideal Buy Price

Nifty Fixed Income Indices

The fixed-income assets include G-sec, T-Bills, Corporate Bonds, Municipal Bonds, Commercial Papers, etc. Based on the categories of debt paper, these indices follow a market-relevant rule-based framework based on different maturity tenures and duration. For instance, the Nifty Corporate Bond Indices include top-rated debt papers of 14-most liquid issuers.

Nifty Index Rebalancing

The indexes are rebalanced regularly to reflect market realities. For instance, indexes are rebalanced due to changes in stock market capitalization, new market listings, changing sectoral weightage to reflect changing economic trends, and stock liquidity.

The rebalancing intervals differ for different index segments. For instance, most equity indexes are rebalanced semi-annually, and the cut-off date is January 31 and July 31 each year. Before the changes are made in the index- four weeks prior notice is given to the market from the change date.

Nifty Fixed Income indexes have different rebalancing intervals for different types of debt assets. For instance, Nifty G-Sec Index is rebalanced monthly, while the Corporate Bond Indexes are rebalanced quarterly.

Impact of Nifty Index Rebalancing on the Market

As investors mostly follow Nifty indices, a sector or stock weightage change may affect the stock’s price performance or result in higher market volatility.

The Nifty50 index is a widely tracked benchmark index, attracting the attention of index funds and ETFs. However, even a minor rebalancing event can trigger volatility in individual stocks. When a stock’s weightage is reduced, index fund managers must sell the stock to align with the new weightage. This selling pressure can lead to a sharp decline in the stock’s price, underscoring the potential impact of index rebalancing on stock volatility.

Similarly, when a stock is included in an index, it is generally viewed as a positive development, attracting increased investor attention and interest.

The inclusion in an index often leads to price appreciation as more investors seek exposure to the stock. This positive sentiment and influx of investment from index funds and individual investors can contribute to the overall performance and growth of the store.

Calculating Nifty Equity Indices Closing Price

The closing price of the indices is determined through a calculation method that involves taking the weighted average closing price of all the constituent stocks over the final 30 minutes of trading.

To determine the closing price of a stock, it is necessary to consider all the prices at which it was traded between 3 PM and 3:30 PM.

Let’s look at an example that illustrates calculating the closing price for stock A.

At 3 PM, two shares of stock A were traded for Rs. 10 per share. At 3:10 PM, two additional shares were sold at Rs. 12 each. Subsequently, at 3:20 PM, one share of stock A was traded at Rs. 11. Finally, at 3:30 PM, the price increased to Rs. 20 per share, and two shares were traded.

To calculate the closing price, multiply the number of shares by the corresponding price at each specific time. For example, at 3 PM, the total product is Rs. 20 (two shares multiplied by Rs. 10). At 3:10 PM, the total is Rs. 24. At 3:20 PM, it amounts to Rs. 11. And at 3:30 PM, it equals Rs. 40. We obtain the total product traded during the last 30 minutes, which is Rs. 95 by adding the values above.

The closing price is determined by dividing the total product by the total number of shares traded within the 30-minute timeframe. Hence, the closing price is Rs. 13.57 (Rs. 95 divided by 7 shares).

Closing Price = Total product values/ No of shares traded in the last 30 mins

However, it’s worth noting that the most recent trading price for stock A is Rs. 20, representing the price at which the stock was last traded.

Who Manages The Indices?

A professional team manages Nifty Indices and has a three-tier governance structure comprising the Board of Directors of Nifty Indices, the Index Advisory Committee, and the Index Maintenance Sub-committee.

The Index Policy Committee is involved in the policy and guidelines for managing the Nifty Equity and Fixed Income indices. And the Index Maintenance Committee is involved in the decision-making of addition and deletion of the company in any index.

An additional index committee, the Index Oversight Committee, looks after the index design and methodology to ensure that the index reflects the nomenclature and description.

Uses of Nifty Indices

These Indices are used for a variety of purposes, and the most significant are:

Benchmarking: These indices act as a benchmark for investment portfolios and allow investors to gauge how well their investments have fared compared to the overall market.

Launching of Index Funds and ETFs: It helps mutual fund houses establish index funds and ETFs, helping users invest in the broader market without worrying about stock selection and outperforming the market.

Build Structured Investment Product: Indices help investment professionals to build structured investment products and provide critical insights into the market and emerging trends.

Nifty Exchange-Traded Derivatives

Nifty provides a platform for trading futures and options in five major indices: Nifty 50, Bank Nifty, Nifty Financial Services F&O, IT, and Midcap Select F&O.

Investors can effectively hedge against potential losses in their portfolio during market downturns by engaging in futures contract selling on these indices, thereby mitigating risks and minimizing financial setbacks.

Nifty 50, Bank, IT, and Midcap F&O contracts are traded on National Stock Exchange, NSE IFSC Limited, and Singapore Exchange (SGX).

Nifty ETFs and Index Funds

These are crucial benchmark indices for many Exchange-Traded Funds (ETFs) in India and internationally. In India, 122 and 12 ETFs abroad rely on these indices as their benchmark. In addition, all leading mutual fund houses in India widely adopt Nifty50 and other indices as benchmarks for their index funds and various additional funds.

Difference Between Nifty50 and TRI Index

In the Nifty family of indices, you will often find two distinct values associated with an index: the price return index (PRI), which is reported widely. And the other is the total return index (TRI).

The PRI reflects the price movement of the index constituents, considering only the changes in stock prices. On the other hand, the TRI accounts for not just the price changes but also includes the impact of dividends received from the constituent stocks. As a result, it provides an accurate picture of the returns of the index constituents. In addition, the dividends are factored in the index’s value as they occur or are indexed on ex-date.

The TRI offers a more accurate reflection of the total returns an investor would have earned if they held a portfolio replicating the index as it considers the reinvestment of dividends. For this reason, mutual fund houses use the TRI index for all their funds for accurate comparison.

Indexed dividends are reinvested in the index and are given the TR index value. The formula for calculating the Total Return Index value is as follows:

        Indexed Dividend: Dividend Payout / Base Cap of the Index
Total Return Index: Previous TR + [{1+ (Today’s PR Index + Indexed Dividend)/Previous PR Index}-1]

Nifty 50 1-year Chart

image 2
Source: Investing.com

Nifty TRI Index

image 3
Source: Investing.com

The two charts above show the value difference between the Nifty50 Index and the TRI Index. The Nifty50 is trading at 18,499 points, while the TRI Index is trading at 26,991 points as of May 26, 2023.

Similarly, there is another index type- Equal Weighted Index. It assigns equal weight to all stocks in the index, giving equal importance to all index constituents. So, for example, all the stocks in the index will have a 2% weight, irrespective of their market cap.

Broad-based Indices – Equity

Broad-based indices are also known as benchmark indices and provide an accurate picture of the state of the overall market. The following are the top 6 broad-based Nifty Equity Indices:

Nifty 50

It is a highly diversified stock index that includes all significant sectors of the economy. Like the BSE Sensex, Nifty50 is a barometer of the country’s economic health. It comprises 50 large and highly liquid stocks on the National Stock Exchange (NSE).

The index represents a comprehensive market performance and investor sentiment snapshot. Within the Nifty index, the top 3 sector allocation is as follows: Financial Services stocks hold a weightage of 38.44%, IT stocks have a weightage of 12.74%, and Oil & Gas stocks carry a weightage of 12.15%. As of April 28, 2023. The top 10 index constituents are:

List of NSE Nifty 50
StocksWeightage (in %)
Reliance Industries10.32
HDFC Bank9.38
ICICI Bank8.08
Infosys Ltd.5.63
ITC Ltd.4.73
TCS Ltd.4.16
Larsen & Toubro Ltd.3.60
Kotak Mahindra Bank Ltd.3.59
Axis Bank Ltd.2.97

Other index variants of Nifty50 are Nifty50 USD, TRI, and Dividend Points Index.

Nifty Next 50

Nifty Next 50 comprises stocks not included in the Nifty50 and Nifty100, representing approximately 12% of the free float market capitalization of stocks listed on the NSE.

The index has a sector allocation where Financial Services holds the largest weight with 18.11%, followed by FMCG stocks at 14.26% and Capital Goods stocks at 10.04% as of April 28, 2023. The top 10 constituents of the index as of April 28, 2023, are as follows:

List of NSE Nifty Next 50
StocksWeightage (in %)
Bharat Electronics Ltd.3.37
SRF Ltd.3.36
Pidilite Industries Ltd.3.36
Bank of Baroda 3.18
Cholamandalam Investment and Finance3.13
Godrej Consumer Products Ltd. 3.13
Shree Cement Ltd.2.96
Dabur India Ltd. 2.84
Vedanta Ltd. 2.84


It is a comprehensive index of 100 stocks that offer a well-diversified representation of all major economic sectors and represent 77% of the free-float market capitalization of the stocks listed on the NSE.

The index tracks the behavior of the combined portfolio of two indices, Nifty50 and Next 50. Within the index, Financial Services stocks hold the most significant weight at 35.61%, IT stocks at 11.43%, and Oil & Gas stocks at 11.41%. The top 10 constituents of the index as of April 28, 2023, are:

StocksWeightage (in %)
Reliance Industries Ltd.8.91
HDFC Bank Ltd.8.09
ICICI Bank Ltd.6.97
Infosys Ltd.4.86
ITC Ltd.4.08
 TCS Ltd.3.59
Larsen & Toubro Ltd.3.11
Kotak Mahindra Bank Ltd. 3.10
Axis Bank Ltd.2.56

Other index variants of the Nifty100 include the Nifty100 Equal Weight Index.

Nifty 200

The index reflects the price behavior and performance of both large and mid-cap stocks. In addition, it includes stocks constituting the Nifty100 and Fully Midcap 100 indices, ensuring representation from diverse companies listed on the NSE.

Financial Services stocks account for 34.02% of the index’s weight, followed by IT stocks at 10.82% and Oil & Gas stocks at 10.53%. The following are the top 10 constituents of the index as of April 28, 2023:

StocksWeightage (in %)
Reliance Industries Ltd.7.72
HDFC Bank Ltd.8.09
ICICI Bank Ltd.6.04
Infosys Ltd.4.22
ITC Ltd.3.54
TCS Ltd.3.11
 Larsen & Toubro Ltd.2.70
Kotak Mahindra Bank Ltd. 2.69
 Axis Bank Ltd.2.22

Nifty 500

The index represents the top 500 companies listed on the NSE by market capitalization. As of March 2016, it represented about 94% of the free-float market capitalization of the stocks listed on the NSE. The Nifty500 exhibits similar price behavior and performance to the Nifty 50. The top 10 constituents of the index as of April 28, 2023, are as follows:

StocksWeightage (in %)
Reliance Industries Ltd.6.88
HDFC Bank Ltd.6.25
ICICI Bank Ltd.5.38
Infosys Ltd.3.76
ITC Ltd.3.15
 TCS Ltd.2.77
 Larsen & Toubro Ltd.2.40
Kotak Mahindra Bank Ltd. 2.39
 Axis Bank Ltd.1.98

Nifty Midcap 100

The 100 index captures the price behavior and performance of midcap stocks listed on the NSE. It includes the top 100 stocks of the stocks by free-float market capitalization. The index has high exposure to the Financial Services sector with 23.73% weightage, followed by Healthcare at 12.85% and Capital Goods at 9.82%. The top 10 constituents of the Midcap 100 index as of April 28, 2023, are as follows:

StocksWeightage (in %)
Shriram Finance Ltd. 2.61
Max Healthcare Institute Ltd.2.40
AU Small Finance Bank Ltd. 2.26
Trent Ltd.2.13
Indian Hotels Co. Ltd.2.11
Federal Bank Ltd.2.02
Tube Investments of India Ltd.1.91
TVS Motor Company Ltd.1.88
 Persistent Systems Ltd.1.69
 Tata Elxsi Ltd.1.64

The broad-based Nifty indices that investors also follow include- Nifty Total Market, Nifty50 0 Multicap 50:25:25. Midcap 150, Midcap 50, Midcap Select, Smallcap 250, Smallcap 50, Smallcap 100, Microcap 250, LargeMidcap 250, and MidSmallcap 400.

Nifty Sectoral Indices – Equity

Sectoral indices provide an overview of how stocks in a particular industry perform. The key sectoral index widely followed in the market is as follows.

Nifty Auto

Auto Index is designed to reflect the price performance of automobile stocks. It includes stocks of 4, 3 & 2-wheeler manufacturers, auto ancillaries, and tyres. The index consists of 15 tradable and exchange-listed stocks. The following are the top 10 stocks included in the Index:

StocksWeightage (in %)
Maruti Suzuki India Ltd.18.66
Mahindra & Mahindra Ltd.17.95 
Tata Motors Ltd.13.95
 Bajaj Auto Ltd.8.20
Eicher Motors Ltd.7.38
 Hero MotoCorp Ltd.5.43
 Tube Investments of India Ltd.4.41
TVS Motor Company Ltd. 4.33
Ashok Leyland Ltd.3.43
 Bharat Forge Ltd.3.35

Nifty Bank

It is the most watched index after the Nifty 50 and comprises the most liquid and large banking stocks. The following are the 12 banks included in the index and their weightage as of April 28, 2023.

StocksWeightage (in %)
HDFC Bank27.41
ICICI Bank23.61
Kotak Mahindra Bank10.50
State Bank of India10.47
Axis Bank9.53
IndusInd Bank6.25
Bank of Baroda2.91
AU Small Finance Bank2.65
Federal Bank2.38
IDFC First Bank1.59
Bandhan Bank1.41
Punjab National Bank1.29

Nifty IT

The index captures the price behavior and performance of Indian IT companies and includes the ten largest IT stocks by market capitalization. The following are the IT stocks included in the index as of April 28, 2023.

StocksWeightage (in %)
Tata Consultancy Services Ltd.27.38
Infosys Ltd. 24.12
Wipro Ltd.9.85
 HCL Technologies Ltd. 9.35
Tech Mahindra Ltd. 8.57
LTIMindtree Ltd.8.01
 Persistent Systems Ltd.4.72
Coforge Ltd. 2.98
MphasiS Ltd.2.97
 L&T Technology Services Ltd.2.05

Nifty FMCG

The index includes stocks in the fast-moving consumer goods vertical, closely monitored to determine the economy’s consumption pattern. The FMCG index comprises 15 stocks that deal with non-durable, mass-consumption products that are available off the shelf. The top constituents of the index as of April 28, 2023, are as follows:

StocksWeightage (in %)
ITC Ltd.32.73
Hindustan Unilever Ltd.22.17
 Nestle India Ltd. 7.84 
 Britannia Industries Ltd. 6.50
Tata Consumer Products Ltd.5.49
 Godrej Consumer Products Ltd. 4.15
Varun Beverages Ltd.4.09
Dabur India Ltd.3.77
Marico Ltd.3.10
United Spirits Ltd. 2.73

Nifty Metal

The Metal index provides the stock price performance of the metal sector, including mining, and comprises 15 stocks. Following are the top 10 stocks listed on the Index:

StocksWeightage (in %)
Tata Steel Ltd. 21.44
JSW Steel Ltd. 16.83
 Hindalco Industries Ltd.15.68
Adani Enterprises Ltd.12.97
Vedanta Ltd.7.67
Jindal Steel & Power Ltd. 5.27
APL Apollo Tubes Ltd.5.06
NMDC Ltd.3.05
Steel Authority of India Ltd.2.95
Jindal Stainless Ltd. 2.40

Other sectoral Nifty indices include Healthcare, Financial Services, Financial Services 25/50, Financial Services Ex Bank, Media, Pharma, Private Bank, PSU Bank, Realty, Oil & Gas, MidSmall Financial Services, MidSmall Healthcare, and MidSmall IT & Telecom.

Nifty Thematic Indices- Equity

Thematic Indices cover multiple sectors but belong to a specific theme. For instance, the Consumption Index will include only stocks directly related to and portray India’s consumption story. Let’s look at some of the key Thematic Indices.

Nifty Commodities

The index is designed to represent the performance of a diversified portfolio of commodities segments, including Oil & Gas, Metals and Mining, Petroleum, Cement, Power, Chemicals, and Sugar. It comprises 30 stocks, and the weightage of each stock in the index is capped at 10%.

Following are the top 10 stocks by weightage:

StocksWeightage (in %)
Reliance Industries Ltd.10.23
 UltraTech Cement Ltd.7.33
 Tata Steel Ltd.7.32
NTPC Ltd.6.87
JSW Steel Ltd. 5.75
Hindalco Industries Ltd.5.35
 Grasim Industries Ltd. 5.33
Oil & Natural Gas Corporation Ltd. 5.21
Coal India Ltd.4.10
UPL Ltd.3.22

Nifty CPSE

The index was created with a specific goal, i.e., to facilitate the Government of India’s disinvestment program in Central Public Sector Enterprises (CPSE) via the ETF route. It comprises 10 select CPSE stocks and is benchmarked to one of the largest ETFs in the Indian stock market.

The following are the stocks included in the index:

StocksWeightage (in %)
Power Grid Corporation of India Ltd.20.05
Oil & Natural Gas Corporation Ltd.19.67
NTPC Ltd.18.68
Coal India Ltd.17.66
Bharat Electronics Ltd. 13.38
NHPC Ltd. 4.34
Oil India Ltd.3.30
NBCC (India) Ltd.0.97
SJVN Ltd.0.66
NLC India Ltd.0.65

There are 31 Nifty Thematic Indices that cover every possible investing theme. Some popular Nifty Thematic Indices include Nifty Energy, Housing, India Defence, PSE, Aditya Birla Group, and Tata Group.

Nifty Strategy Indices – Equity

Also known as multi-factor indices, strategy indices are developed to mirror the price performance of a specific group of stocks selected based on a combination of two or more factors like low volatility, quality, value, and alpha. This approach aims to counter the cyclicality observed in single-factor index strategies, thus offering investors the opportunity to gain exposure to multiple factors through a single index product.

Strategy Indices help investors build a diversified portfolio with a balanced approach to factor-based investing.

Nifty Alpha 50

The Alpha 50 tracks 50 stocks listed on NSE with high alpha values in the last year. The stock with the highest alpha has the highest weightage in the index. Alpha refers to the stock’s price performance against the market index or benchmark.

The top 10 stocks included in the index as of April 28, 2023, include:

StocksWeightage (in %)
Karur Vysya Bank Ltd.4.05
Varun Beverages Ltd.4.03
Indian Bank 3.64
Hindustan Aeronautics Ltd.3.58
Mahindra & Mahindra Financial Services Ltd.3.40
Union Bank of India 3.27
Tube Investments of India Ltd. 3.26
CG Power and Industrial Solutions Ltd.3.22
ITC Ltd. 3.21
TVS Motor Company Ltd. 3.15

There are 34 Nifty Strategy Indices that include stocks based on multiple factors and can be used to build a diversified equity portfolio. Other strategy indices include Nifty100 Equal Weight, Low Volatility 30, High Beta 30, Dividend Opportunities 50, Dividends Points, etc.

Nifty G-Sec Indices – Fixed Income

The G-Sec Indices comprehensively assess the price performance and characteristics of government securities traded in the market, considering factors such as duration and maturity.

These indices categorize government securities based on duration and maturity, allowing for a detailed evaluation of their price movements. For instance, the index captures the performance of the most liquid GOI securities across various duration buckets, including Ultra Short Duration, Short Duration, Low Duration, Medium Duration, Medium to Long Duration, and Long Duration.

Similarly, the indices are also constructed based on the residual maturity of government securities. For instance, the 8-13 yr G-Sec index is built using the prices of the top 5 most liquid Government of India (GOI) bonds with residual maturity between 8 to 13 years, with a minimum outstanding issue of ₹5,000 crores.

Nifty India Sovereign Green Bond

This Index tracks the performance of a portfolio comprising Government of India (GOI) securities specifically issued as sovereign green bonds with different maturity periods. Currently, the segment includes two listed indices: Nifty India Sovereign Green Bond Jan 2028 and India Sovereign Green Bond Jan 2033.

Corporate Bond Indices

The Corporate Bond Index tracks the price performance of different corporate bonds issued by Indian companies across various maturities and credit ratings. For instance, there are seven Nifty index categories under which the price performance of corporate bonds is measured:

  • AAA Corporate Bond Indices
  • AA Category Corporate Bond Indices
  • AA+ Corporate Bond Indices
  • AA Corporate Bond Indices
  • AA- Corporate Bond Indices
  • A Corporate Bond Indices
  • Banking & PSU Bond Indices

In line with Corporate Bond Indices, the Municipal Bond Index tracks the performance of bonds issued by Indian Municipal Corporations across different maturities and investment grades.

Money Market Indices

The Nifty Money Market Indices monitor the price performance of short-term debt securities issued by the Reserve Bank of India (RBI) across various maturity periods. This index segment comprises several indices, including Certificate of Deposit Indices, Commercial Paper Indices, T-Bills Series, and 1D Rate indices. By tracking these indices, investors gain insight into the movement and performance of all RBI-issued short-term debt papers.

Target Maturity Index

The Target Maturity Index is specifically structured to conclude at a predetermined date, signifying the fulfillment of its intended objectives.

One example of such an index is the Nifty Bharat Bond April 2025 Index, which has a distinct design and focuses on evaluating the performance of AAA-rated government securities issued by government-owned entities. These securities have maturities falling within twelve months of the target maturity date. In this case, the index will mature in April 2025, aligning with the target maturity date.

Nifty 10-Year SDL Index

The SDL Index evaluates the price performance of a portfolio comprising State Development Loans (SDLs) with a residual maturity of 10 years. This index includes SDLs issued by the top 14 states, selected annually based on their primary issuance volume in the previous year. It offers a comprehensive view of the SDL market within the specified maturity range.

Fixed Income Aggregates

There are 13 indices in the Nifty Fixed Income Aggregates Index series that measure the performance of the aggregate debt portfolio. The index provides a rule-based framework and objective indicator for evaluating the performance of various fixed-income portfolios covering Government Securities, Corporate Bonds of different credit ratings, T-bills, Commercial Paper, etc. Some key indices include Liquid Index, Ultra Short Duration Debt Index, Low Duration Debt Index, etc.

Nifty Fixed Income PRC Indices

The Fixed Income PRC Indices are tailor-made for mutual fund houses that provide debt schemes, adhering to SEBI guidelines on the potential risk class matrix for such schemes. These indices consider both interest rate risk and credit risk factors. Under this category are 66 indices listed, including a wide range of debt papers with varying maturities, from short-term to long-term.

Hybrid Indices

Also known as multi-asset indices, it tracks the performance of a hybrid portfolio that includes a pre-defined combination of debt and equity assets. For instance, the Nifty50 Hybrid Composite Debt 70:30 index measures a hybrid portfolio’s performance, including 70% exposure to Nifty50 stocks and 30% exposure to the Composite Debt Index.

Similarly, the Multi-Asset -Equity: Arbitrage: REITs/InvITs (50:40:10) Index is designed to measure the performance of a multi-asset portfolio having 50% exposure to Nifty50 stocks, 40% to Nifty50 Arbitrage, and 10% to Nifty REIT and InvITs.

India VIX

India VIX is not a portfolio index but is a volatility index based on the Nifty50 option prices and indicates the expected market volatility over the next 30 days. It is used extensively by market participants to hedge their investment portfolio from the expected downside risks and limit losses.

Nifty Indices – Innovation in Wealth Creation Journey

Over the years, indices have played a crucial role in investment decision-making, providing key insights and managing risk effectively.

These indices have brought innovation-driven investment processes providing several benefits and valuable tools for investors in their investment journey. For example, various indices in equity and fixed-income categories are helping investors and other market participants in accurate performance measurement, market analysis, asset allocation, passive investing, risk management, and investment research.

In short, Nifty Indices have played a pivotal role in streamlining investments, fostering transparency, accessibility, and efficiency in the Indian investment landscape. They have enabled investors to make informed decisions and participate in the growth potential of various market segments, contributing significantly to their wealth creation journey.


What is the Nifty 50 and Nifty 100?

Nifty50 and Nifty100 are diversified stock indexes that include the top 50 and top 100 companies of India, respectively, selected based on free-float market capitalization and liquidity of stocks.

How many Nifty indices are there?

Combining both the categories- Equity and Fixed Income, there are over 350 Nifty indices as of April 28, 2023.

What are the utilities of Nifty Indices?

Nifty indices are used in investment research, portfolio benchmarking, launching ETFs and index funds, building structures investment products, and risk management.

Read more:  How Long-term investing helps create life-changing wealth – TOI.

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