Nifty 50 Company List and the Top 3 Ways to Start Investing

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Nifty 50 Company List and the Top 3 Ways to Start Investing

Now you are interested in stock market investing. You want to start investing in the Nifty 50 company list. Because Nifty 50 index consists of top 50 companies of NSE. Obviously, quality is there, and there is no question about it.

If you are a beginner or you do not have much knowledge about stock market investing, how do you start?

If you invest in the right stocks at the right times, you will get higher returns. Even if a stock is a quality stock, there is no guarantee that it will give early returns. This is because the stock is not sufficiently undervalued at the time of buying.  So you have to wait several months so that the stock will show its performance.

How do you filter out the undervalued stocks from the Nifty 50 company list? You think this is a big challenge. And only smart managers can do this.

Now I will make it simple. After reading the blog, it is easy for you to sort out the stocks from the Nifty 50 company list, which are eligible for instant investing.

What is the Nifty 50 Index?

The NIFTY 50 index is a set of diversified 50 stocks from 13 different sectors. These are the top 50 stocks of NSE.

It is used for benchmarking purposes.

It represents about 67% of the free-float market capitalization of the stocks listed on NSE, as on 29th March 2019.

Nifty 50 Company List

The followings are the Nifty 50 company list in 2021.

Nifty 50 Company List
S. No.CompanyIndustrySymbolISIN Code
1Adani Ports and Special Economic Zone Ltd.ServicesADANIPORTSINE742F01042
2Asian Paints Ltd.Consumer GoodsASIANPAINTINE021A01026
3Axis Bank Ltd.Financial ServicesAXISBANKINE238A01034
4Bajaj Auto Ltd.AutomobileBAJAJ-AUTOINE917I01010
5Bajaj Finance Ltd.Financial ServicesBAJFINANCEINE296A01024
6Bajaj Finserv Ltd.Financial ServicesBAJAJFINSVINE918I01018
7Bharat Petroleum Corporation Ltd.Oil and GasBPCLINE029A01011
8Bharti Airtel Ltd.TelecomBHARTIARTLINE397D01024
9Britannia Industries Ltd.Consumer GoodsBRITANNIAINE216A01030
10Cipla Ltd.PharmaceuticalsCIPLAINE059A01026
11Coal India Ltd.MetalsCOALINDIAINE522F01014
12Divi’s Laboratories Ltd.PharmaceuticalsDIVISLABINE361B01024
13Dr. Reddy’s Laboratories Ltd.PharmaceuticalsDRREDDYINE089A01023
14Eicher Motors Ltd.AutomobileEICHERMOTINE066A01021
15Grasim Industries Ltd.Cement and Cement ProductsGRASIMINE047A01021
16HCL Technologies Ltd.Information TechnologyHCLTECHINE860A01027
17HDFC Bank Ltd.Financial ServicesHDFCBANKINE040A01034
18HDFC Life Insurance Company Ltd.Financial ServicesHDFCLIFEINE795G01014
19Hero MotoCorp Ltd.AutomobileHEROMOTOCOINE158A01026
20Hindalco Industries Ltd.MetalsHINDALCOINE038A01020
21Hindustan Unilever Ltd.Consumer GoodsHINDUNILVRINE030A01027
22Housing Development Finance Corporation Ltd.Financial ServicesHDFCINE001A01036
23ICICI Bank Ltd.Financial ServicesICICIBANKINE090A01021
24ITC Ltd.Consumer GoodsITCINE154A01025
25Indian Oil Corporation Ltd.Oil and GasIOCINE242A01010
26IndusInd Bank Ltd.Financial ServicesINDUSINDBKINE095A01012
27Infosys Ltd.Information TechnologyINFYINE009A01021
28JSW Steel Ltd.MetalsJSWSTEELINE019A01038
29Kotak Mahindra Bank Ltd.Financial ServicesKOTAKBANKINE237A01028
30Larsen and Toubro Ltd.ConstructionLTINE018A01030
31Mahindra and Mahindra Ltd.AutomobileM&MINE101A01026
32Maruti Suzuki India Ltd.AutomobileMARUTIINE585B01010
33NTPC Ltd.PowerNTPCINE733E01010
34Nestle India Ltd.Consumer GoodsNESTLEINDINE239A01016
35Oil and Natural Gas Corporation Ltd.Oil and GasONGCINE213A01029
36Power Grid Corporation of India Ltd.PowerPOWERGRIDINE752E01010
37Reliance Industries Ltd.Oil and GasRELIANCEINE002A01018
38SBI Life Insurance Company Ltd.Financial ServicesSBILIFEINE123W01016
39Shree Cement Ltd.Cement and Cement ProductsSHREECEMINE070A01015
40State Bank of IndiaFinancial ServicesSBININE062A01020
41Sun Pharmaceutical Industries Ltd.PharmaceuticalsSUNPHARMAINE044A01036
42Tata Consultancy Services Ltd.Information TechnologyTCSINE467B01029
43Tata Consumer Products Ltd.Consumer GoodsTATACONSUMINE192A01025
44Tata Motors Ltd.AutomobileTATAMOTORSINE155A01022
45Tata Steel Ltd.MetalsTATASTEELINE081A01012
46Tech Mahindra Ltd.Information TechnologyTECHMINE669C01036
47Titan Company Ltd.Consumer GoodsTITANINE280A01028
48UPL Ltd.Fertilisers and PesticidesUPLINE628A01036
49UltraTech Cement Ltd.Cement and Cement ProductsULTRACEMCOINE481G01011
50Wipro Ltd.Information TechnologyWIPROINE075A01022

The Nifty 50 company list may change year to year. What the list this year, may not the same for the next year. The right place to check the Nifty 50 Company List is the NSE website.

NSE Website - Nifty 50 company list

The top 3 ways to start investing in the Nifty 50 company list

I suggest the following 3 ways to start successful investing in the Nifty 50 company list.

  • Based on stock intrinsic value
  • Based on P/E Ratio
  • Based on P/B Ratio

Based on stock intrinsic value

The stock intrinsic value is nothing but the approximate true value of a stock.

It is believed that the stock price will hit the intrinsic price one day, subject to the stock is a quality stock.

In other words, the intrinsic value of a stock matters a lot for quality stock.

First, you have to calculate the intrinsic value of all stocks in the Nifty 50 company list.

You may think about how to calculate the stock intrinsic value.

No problem, I have made an online calculator for finding out the stock intrinsic value. And it is free. The link is given below.

My stock intrinsic value calculator

Intrinsic Value Calculator-Nifty 50 company list

How to use the calculator? The details are explained in the below link.

How to use the stock intrinsic value calculator

Go through the links and calculate the stock intrinsic value.

Now you learned how to calculate the intrinsic value of a stock.

After calculating the intrinsic value of all stocks of the Nifty 50 company list, put these in an MS Excel sheet, along with the current price of the stocks. Now filter out the stocks which have higher intrinsic values, compared to the current market price.

The higher the stock intrinsic value concerning the current market price, the better is the stock for investment.

Based on P/E Ratio

The P/E ratio is known as the price-to-earnings ratio. It is used to compare the share price to its earnings.

PE Ratio-Nifty 50 company list

It is generally used to express whether a quality stock is undervalued or not.

A low P/E ratio of any stock is not an undervalued one. The stock should be a quality stock prior to check its P/E ratio. Otherwise, there is no meaning.

Choose the stocks from the Nifty 50 company list for a P/E Ratio of less than 15.

Based on P/B Ratio

The P/B ratio is known as the price-to-book value ratio. It is used to compare the share price to its book value.

PB Ratio-Nifty 50 company list

It is also used to express whether a quality stock is undervalued or not.

However, a low P/B ratio of any stock is not an undervalued one. Here also, the stock should be a quality stock prior to check its P/B ratio. Otherwise, there is no meaning.

Choose the stocks from the Nifty 50 company list for a P/B Ratio of less than 1.5.

 When to invest

You have sorted out some stocks from the Nifty 50 company list for investment, based on the stock intrinsic value, P/E ratio, and P/B ratio.

Now the question is when to invest. That means the right time to invest.

From my past experience, I will suggest one thing.

The right time to invest in a stock is when it hits its major support.

Bonus Tip:

If the multiplication of the P/E ratio and P/B ratio of a stock is less than 22.5, it is good. It is suitable for investing and yields well return.

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