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.||Company||Industry||Symbol||ISIN Code|
|1||Adani Ports and Special Economic Zone Ltd.||Services||ADANIPORTS||INE742F01042|
|2||Asian Paints Ltd.||Consumer Goods||ASIANPAINT||INE021A01026|
|3||Axis Bank Ltd.||Financial Services||AXISBANK||INE238A01034|
|4||Bajaj Auto Ltd.||Automobile||BAJAJ-AUTO||INE917I01010|
|5||Bajaj Finance Ltd.||Financial Services||BAJFINANCE||INE296A01024|
|6||Bajaj Finserv Ltd.||Financial Services||BAJAJFINSV||INE918I01018|
|7||Bharat Petroleum Corporation Ltd.||Oil and Gas||BPCL||INE029A01011|
|8||Bharti Airtel Ltd.||Telecom||BHARTIARTL||INE397D01024|
|9||Britannia Industries Ltd.||Consumer Goods||BRITANNIA||INE216A01030|
|11||Coal India Ltd.||Metals||COALINDIA||INE522F01014|
|12||Divi’s Laboratories Ltd.||Pharmaceuticals||DIVISLAB||INE361B01024|
|13||Dr. Reddy’s Laboratories Ltd.||Pharmaceuticals||DRREDDY||INE089A01023|
|14||Eicher Motors Ltd.||Automobile||EICHERMOT||INE066A01021|
|15||Grasim Industries Ltd.||Cement and Cement Products||GRASIM||INE047A01021|
|16||HCL Technologies Ltd.||Information Technology||HCLTECH||INE860A01027|
|17||HDFC Bank Ltd.||Financial Services||HDFCBANK||INE040A01034|
|18||HDFC Life Insurance Company Ltd.||Financial Services||HDFCLIFE||INE795G01014|
|19||Hero MotoCorp Ltd.||Automobile||HEROMOTOCO||INE158A01026|
|20||Hindalco Industries Ltd.||Metals||HINDALCO||INE038A01020|
|21||Hindustan Unilever Ltd.||Consumer Goods||HINDUNILVR||INE030A01027|
|22||Housing Development Finance Corporation Ltd.||Financial Services||HDFC||INE001A01036|
|23||ICICI Bank Ltd.||Financial Services||ICICIBANK||INE090A01021|
|24||ITC Ltd.||Consumer Goods||ITC||INE154A01025|
|25||Indian Oil Corporation Ltd.||Oil and Gas||IOC||INE242A01010|
|26||IndusInd Bank Ltd.||Financial Services||INDUSINDBK||INE095A01012|
|27||Infosys Ltd.||Information Technology||INFY||INE009A01021|
|28||JSW Steel Ltd.||Metals||JSWSTEEL||INE019A01038|
|29||Kotak Mahindra Bank Ltd.||Financial Services||KOTAKBANK||INE237A01028|
|30||Larsen and Toubro Ltd.||Construction||LT||INE018A01030|
|31||Mahindra and Mahindra Ltd.||Automobile||M&M||INE101A01026|
|32||Maruti Suzuki India Ltd.||Automobile||MARUTI||INE585B01010|
|34||Nestle India Ltd.||Consumer Goods||NESTLEIND||INE239A01016|
|35||Oil and Natural Gas Corporation Ltd.||Oil and Gas||ONGC||INE213A01029|
|36||Power Grid Corporation of India Ltd.||Power||POWERGRID||INE752E01010|
|37||Reliance Industries Ltd.||Oil and Gas||RELIANCE||INE002A01018|
|38||SBI Life Insurance Company Ltd.||Financial Services||SBILIFE||INE123W01016|
|39||Shree Cement Ltd.||Cement and Cement Products||SHREECEM||INE070A01015|
|40||State Bank of India||Financial Services||SBIN||INE062A01020|
|41||Sun Pharmaceutical Industries Ltd.||Pharmaceuticals||SUNPHARMA||INE044A01036|
|42||Tata Consultancy Services Ltd.||Information Technology||TCS||INE467B01029|
|43||Tata Consumer Products Ltd.||Consumer Goods||TATACONSUM||INE192A01025|
|44||Tata Motors Ltd.||Automobile||TATAMOTORS||INE155A01022|
|45||Tata Steel Ltd.||Metals||TATASTEEL||INE081A01012|
|46||Tech Mahindra Ltd.||Information Technology||TECHM||INE669C01036|
|47||Titan Company Ltd.||Consumer Goods||TITAN||INE280A01028|
|48||UPL Ltd.||Fertilisers and Pesticides||UPL||INE628A01036|
|49||UltraTech Cement Ltd.||Cement and Cement Products||ULTRACEMCO||INE481G01011|
|50||Wipro Ltd.||Information Technology||WIPRO||INE075A01022|
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.
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.
How to use the calculator? The details are explained in the below link.
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.
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.
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.
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.
If you like the post, give your comment and share it with your friends.