Nifty 500 Growth 50: A Beginner’s Guide to the Newly Launched Index 13Sep2026
(This is my 535th blog since 2010. Over the years, I have covered global financial markets, with a focus on India, and continue to share insights to help readers understand complex topics in simple language.
The views expressed here are for information purposes only and should not be construed as a recommendation or investment advice. While the author is a CFA Charterholder with nearly 25 years of experience in financial markets, this content is intended to share general insights and does not constitute financial guidance.
1) Introduction and Importance
The Nifty500 Growth 50 is a new index from NSE Indices Ltd that tracks 50 companies from the Nifty 500 Index showing strong growth. It considers their profit growth, sales growth and stock return performance while selecting companies.
The index gives investors a simple way to follow a basket of growth-focused companies and could also become the basis for products such as exchange traded funds or ETFs and index funds.
2) How exactly NSE selects these 50 growth stocks?
So how did NSE arrive at these 50 companies?
All the 50 stocks are drawn from the broader Nifty 500 Index.
NSE looked at three measures for every eligible stock:
> three-year profit growth,
> three-year sales growth, and
> one-year risk-adjusted stock performance
And, NSE then combined them into an overall growth score. The companies with the strongest scores made the cut, subject to rules on liquidity, stock and sector weights.
For investors, the index can therefore be a useful starting point to discover interesting companies and sectors, rather than a portfolio to blindly copy — especially since its concentrated nature can make it relatively risky for novice investors.
3) Index's Portfolio Characteristics
Methodology: Tilt weighted
Tilt weighted means the weights are influenced not just by a company’s size but also by its growth score. Companies with stronger growth scores can receive a higher weight, while stock and sector caps prevent any one company or sector from becoming too dominant.
Each stock’s weight is derived by multiplying its free-float market capitalisation by its growth score. It then applies a 5 per cent stock cap and a 30 per cent sector cap.
No. of Stocks: 50
Index launch Date: 26Aug2026
Index base Date: 01Apr2005
Base Value: 1000
Calculation Frequency: End of day
Index Rebalancing: Half yearly (June, December)
At present, there are no passive funds such as exchange traded funds (ETFs) or index funds tracking this index.
4) Fundamentals, risk and return ratios
All the data are as of 31Aug2026.
PE ratio: 42.9
PB ratio: 8.8
Dividend yield: 0.23
Total returns (these are theoretical / back tested returns, readers should not interpret as an indication of future performance):
YTD: 10.7%
1-year: 17.1%
5-year: 17.5
Standard deviation:
1-year: 20.6%
5-year: 20.1%
5) How does it compare with its parent index Nifty 500?
The Nifty 500 Growth 50 is quite different from its broader parent, the Nifty 500.
While financial services dominates both, the Nifty 500 Growth 50 has a much higher allocation to capital goods at 28.9 per cent.
Its top holdings are also different, with growth-oriented names such as Dixon Technologies, MCX, Nykaa and Trent featuring prominently.
The Growth 50 trades at a much higher PE of 42.9 versus 22.7 for the Nifty 500, and a PB of 8.8 versus 3.3.
The child index's dividend yield is also much lower at 0.23 per cent, compared with 0.95 per cent for the parent index.
This suggests investors are paying a significant premium for the growth potential of its companies in the Growth 50 Index.
For investors, the Growth 50 Index is therefore more concentrated and growth-focused, with potentially higher returns but also higher valuation and concentration risks.
The higher valuation for Growth 50 indicates that a significant part of the expected growth may already be priced into these stocks. In my view, this leaves less room for disappointment if future growth falls short of market expectations.
6) Sector Allocation and Top Stocks:
Capital goods, financial services and consumer services stocks dominate the index.
Chart showing top 10 sectors and top 10 stocks in the index >
Sectors:
The biggest thing to note is the index’s sector concentration: Capital Goods and Financial Services together make up 56.6 per cent, while the top five sectors account for 81.2 per cent.
This makes the index more sensitive to developments in a few key parts of the economy than the broader Nifty 500.
For small investors, this concentration can increase risk if sectors such as Capital Goods or Financial Services face a prolonged slowdown.
However, the concentration is also a result of the index’s focus on companies with stronger growth characteristics.
Stocks:
The top 10 stocks also show how strongly the index leans towards growth-oriented companies, rather than simply the largest companies in the market.
Dixon Technologies has the highest weight at 6.09 per cent, followed by MCX at 5.65 per cent and FSN E-Commerce (Nykaa) at 5.48 per cent.
Jio Financial Services, Cummins India and GE Vernova T&D India are the other stocks with weights above 4 per cent.
The top 10 stocks account for 47.5 per cent of the index, highlighting concentration risk.
The full list of 50 stocks is provided at the end of the article.
The Growth 50 can therefore be seen more as a source of interesting stocks and sectors to research, rather than a portfolio to replicate blindly.
7) Action button
The Nifty500 Growth 50 is an interesting new lens through which to look at Indian equities. Its methodology brings together companies showing strong profit and sales growth, but the resulting portfolio is concentrated and commands a significant valuation premium over the Nifty 500.
For individual investors, its biggest value may therefore be as a starting point for research — a way to discover companies and sectors that merit a closer look, rather than a ready-made list of stocks to buy.
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References:
Press release on index introduction
Nifty Indices Research Papers
Nifty Indices methodology document PDF
Nifty Indices factsheets
Nifty 500 Growth 50 Index
Nifty 500 Growth 50 factsheet PDF
Inside the Nifty 500 Index: How It Changed from 2021 to 2026 28Jul2026
Screenshot of Nifty 500 Growth 50 Index factsheet PDF for Aug2026 >
Sector wise list of all the 50 stocks in Nifty 500 Growth 50 Index >
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