The contribution of Nifty-50 index to India’s total market capitalization declined to a two-decade low of 45.5 percent in the financial year 2024-25. In FY14, 50 blue chip companies accounted for about two-thirds of the country’s total market capitalization. The reason for the continuous decline in dominance of the companies included in the Nifty-50 index is the entry of new companies in the listed sector and the good performance of the shares in the broader market.
The latest report of NSE Market Pulse says, if we look at the annual trend, the share of Nifty-50 among NSE listed companies was 45.5 percent in FY 24, which is the lowest level in 20 years. This is a result of the increase in the number of companies listed on the exchange from 422 in FY96 to 2,720 in FY25. Apart from this, the comparatively better performance of mid and small cap companies in the last decade has also contributed significantly to this growth.
The report said, Nifty Midcap 150 and Nifty Smallcap 250 have generated returns of 16 per cent and 13.3 per cent respectively on annual basis in the last 10 years, while the return of Nifty-50 index has been 10.7 per cent. Nifty-50 index includes 50 leading companies in terms of free float market cap. Last month the NSE Nifty-50 index completed 29 years. This measure of Indian market performance was introduced on April 22, 1996. Since its inception, there are only 11 companies that have remained a part of it.
First Published – May 1, 2025 | 10:27 PM IST
