Nifty 100

The Nifty 100 is a stock market index in India that represents the performance of the top 100 companies listed on the National Stock Exchange (NSE). It is one of the key benchmark indices used to gauge the overall health and direction of the Indian stock market. The Nifty 100 is a diversified index, comprising companies from various sectors such as banking, information technology, pharmaceuticals, energy, and manufacturing. Fund managers, traders, and analysts often use Nifty 50 as a benchmark to evaluate the performance of their portfolios and make informed investment decisions.

The Nifty 100 index comprises the top 100 companies listed on the National Stock Exchange (NSE). It undergoes periodic rebalancing, with stocks being included or excluded depending on criteria such as market capitalisation, liquidity, and sector representation. ​​​​​​​

When determining the Nifty 100, the market value of each company is found by multiplying its share price with the total equity. To refine this, the equity is multiplied by the share price to calculate the free-float market value, adjusting for the Investable Weight Factor (IWF) that reflects actively traded share proportions.

The Nifty 100 is computed using a starting point of 1,000 as its base value. The daily index value is established by dividing the current market value by the product of the base market capital and the base value of 1,000. This calculation accommodates changes resulting from corporate actions like rights issues, bonus issues, stock splits, and more.

In essence, the Nifty 100 Index mirrors the combined market values of its top 100 companies, considering free-float and IWF. The calculation, based on a base value of 1,000, ensures an ongoing representation of the collective performance of these companies in the stock market, factoring in changes in valuations and corporate actions.

The weightage of each stock in the Nifty 100 is determined by its market capitalisation relative to the total market capitalisation of all the stocks in the index. The table below depicts the weightage of the top 10 stocks in Nifty 100 (as of January 2024):

No - F&O trading is not possible in Nifty 100.

The Nifty 100 index comprises the top 100 stocks listed on the National Stock Exchange. These stocks are selected based on multiple parameters, including market capitalization, liquidity, and sector representation. The index is rebalanced every six months upon the review of stocks based on the mentioned parameters.

The closing price of the Nifty 100 index is determined based on the average closing price of its constituent stocks between 3 PM to 3:30 PM. At the end of each trading day, the closing prices of all the stocks that make up the Nifty 100 index are recorded. The closing price of the Nifty 100 is then calculated as a weighted sum of the closing prices of these constituent stocks.
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The Nifty 100 index reflects the performance of the top 100 stocks listed on the National Stock Exchange (NSE). Hence, you cannot buy or sell Nifty 100 units directly. However, you can invest in index mutual funds, which invest in the constituent stocks of the Nifty 100 index in the same weightage as the index to replicate the performance of Nifty 100.