Difference Between Nifty 50 vs Nifty Next 50 vs Nifty 100

Nifty 50, Nifty Next 50, and Nifty 100 are major indices compiled by the National Stock Exchange (NSE) to represent large-cap and emerging blue-chip companies. While Nifty 50 reflects the top-performing stocks, Nifty Next 50 and Nifty 100 serve as broader indicators, capturing the second line of market leadership and a consolidated view of the top 100 companies.

The Nifty 50 Index comprises 50 of the largest, most liquid, and fundamentally strong companies listed on NSE. These are typically industry leaders and represent about 65% of the total free-float market capitalisation of NSE-listed stocks. It is the most widely tracked benchmark for Indian equity markets.

The Nifty Next 50 Index includes companies ranked 51 to 100 by market capitalisation. These stocks are potential entrants into the Nifty 50, and represent the "emerging large-cap" space. They often show higher volatility and faster growth potential, making them a popular choice for aggressive investors.

The Nifty 100 Index combines the Nifty 50 and Nifty Next 50 into a single, broader benchmark. It offers a comprehensive view of India’s largest 100 companies, enabling better diversification for passive investors and fund managers.

The below given table highlights the differences between the indexes:

Nifty 50

This index typically attracts risk-averse investors due to its composition of India’s largest and most liquid companies. These firms are typically well-established, financially sound, and offer more predictable performance. It’s considered a stable long-term core portfolio holding.

Nifty Next 50

This segment is more suited to aggressive or growth-oriented investors. Companies in this index are not yet part of the Nifty 50 but have the potential to grow into large-cap status. While they offer higher return potential during bull markets, they also come with greater volatility.

Nifty 100

Combining the Nifty 50 and Nifty Next 50, the Nifty 100 provides a broad-based, diversified exposure to India’s top 100 companies. It balances growth and stability, making it an efficient option for passive investors seeking market-wide exposure through index funds or ETFs.

Nifty 50

While its returns may be lower in bull markets, the index generally shows resilience during downturns, thanks to the financial strength and global exposure of its constituents.

Nifty Next 50

Historically, this index has shown strong outperformance during bull phases, driven by emerging large-cap stocks with high earnings potential. However, during bear markets, its higher volatility and lower market depth often lead to sharper corrections.

Nifty 100

As a combination of both indices, Nifty 100 tends to smooth out extremes, offering moderate volatility and consistent performance across market cycles.

Nifty 50

This index is financials-heavy, with major weightage in banks, NBFCs, IT services, and energy companies. These sectors dominate due to their scale and consistent earnings.

Nifty Next 50

This index has greater exposure to consumer goods, healthcare, industrials, and emerging tech, offering broader sectoral diversity and future growth potential.

Nifty 100

By blending both, Nifty 100 achieves a balanced sectoral spread. It reduces over-concentration risk while maintaining exposure to India’s economic growth engines across multiple industries.

Understanding the distinctions between Nifty 50, Nifty Next 50, and Nifty 100 helps investors align their choices with their financial goals and risk profiles. Each index plays a unique role in building a diversified equity portfolio in India’s dynamic market.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.