The Nifty Infrastructure index, also known as Nifty Infra, is a sectoral index that was launched by NSE Indices Limited, a subsidiary of the National Stock Exchange (NSE), on August 7, 2007. The index is designed to measure the performance of companies operating in the infrastructure sector of the Indian economy.
The Nifty Infrastructure index serves as a benchmark to measure the performance of investments in the infrastructure sector. It is widely followed by various market participants, including institutional investors, fund managers, and individual investors, for this reason.
Nifty Infra stocks include 30 companies from industries such as construction, power, port, railways, telecom, air, roads, shipping, and other utility services listed on the NSE. The companies included in the index are selected based on certain specific eligibility criteria.
The Nifty Infra stock list is reviewed and rebalanced periodically on a semi-annual basis on January 31 and July 31 of each calendar year. Such periodic reviews are done to ensure that the index continues to accurately reflect the performance of the Indian infrastructure sector. The top 10 constituents of the index, along with their respective weights, are tabulated below.
Ranking
Constituent
Weight
1
Reliance Industries Limited
18.49%
2
Larsen & Toubro Limited
14.55%
3
Bharti Airtel Limited
11.98%
4
NTPC Limited
5.72%
5
Power Grid Corporation of India Limited
4.74%
6
UltraTech Cement Limited
3.84%
7
Adani Ports and Special Economic Zone Limited
3.54%
8
Oil & Natural Gas Corporation Limited
3.46%
9
Grasim Industries Limited
2.86%
10
Tata Power Company Limited
2.48%
How is the Nifty Infrastructure Index Calculated?
The Nifty Infrastructure index is a free-float market capitalisation-weighted index. Here is how the index value is calculated:
Step 1: Computation of free-float market capitalisation of Nifty Infra stocks
The first step is to calculate the market cap of each company on the Nifty Infra stock list and adjust it for free float. The mathematical formula used to calculate this is as follows:
Free-Float Market Cap of a Stock = [(Current Market Price x Total Number of Outstanding Shares) x Free-Float Factor]
Step 2: Computation of the Nifty Infra index value
The next step is to arrive at the Nifty Infra index value by adding the free-float market cap of all the index’s constituents and multiplying it with the index’s base value. The resulting figure is then divided by the index’s base market capitalisation. Here is the following mathematical formula that is used to calculate the index value:
Nifty Infra = [(Free-Float Market Cap of All Constituents * Base Index Value) ÷ Base Market Cap]
Here, the base index value is 1,000, and the base market cap is the market capitalisation of all of the index’s stocks as of the base date of January 1, 2004.
Inclusion Criteria for the Nifty Infrastructure Index
A company must satisfy the below-mentioned criteria to be eligible for inclusion in the Nifty Infra index.
The company must be a part of the infrastructure sector.
The company must be a part of the Nifty 500 index. If the number of companies eligible for inclusion in the Nifty Infra index is below 10, the deficit shall be bridged by selecting companies from the top 800 in terms of average daily market capitalisation and average daily turnover for the last six months.
The company must be a part of the derivatives (F&O) trading segment.
The trading frequency of the company must be at least 90% in the last six months.
The final list of Nifty Infra stocks is made on the basis of the free-float market capitalisation method.
The weightage of any single stock in the Nifty Infra stock list must not be more than 20% at the time of rebalancing.
Nifty Infrastructure FAQ's
Since Nifty Infra is an index and not a stock, you cannot directly invest in it. However, if you wish to gain exposure to stocks listed in this particular index, you could consider investing in mutual funds and exchange-traded funds (ETFs) based on the Nifty Infrastructure index.
The primary objective of Nifty Infra is to accurately reflect the performance of companies within the infrastructure sector of the Indian economy. Another major objective of the index is to serve as a benchmark for measuring the performance of investments made in the infrastructure sector.
Adani Ports and Special Economic Zone Ltd. has had the highest average revenue growth in the past five years (as of June 19, 2024).
Adani Ports and Special Economic Zone Ltd. has had the highest average profit growth in the past five years (as of June 19, 2024).
The Nifty Infrastructure index was created by NSE Indices Limited, a subsidiary of the National Stock Exchange (NSE). NSE Indices Limited holds the rights and ownership of the index.
Other Indices
Indices Name
Price
Price Change(% change)
Nifty Alpha 50
49947.75
-2.0430
Nifty 100 Liq 15
7386
-1.6610
Nifty 10 B-G Sec
2617.66
-0.1842
Nifty 8-13 G-Sec
2969.72
-0.1993
Nifty10 BG-Sec-C
897.01
-0.2402
Nifty GS 4 8Yr
3223.66
-0.0939
Nifty GS 11 15Yr
3247.43
-0.3523
Nifty GS 15YrPlu
3453.86
-0.2947
Nifty100 ESG
5141.85
-1.0726
Nifty200 Qual 30
21135.4
-1.5527
Nifty Alpha LV30
27014.15
-0.8120
Nifty200 Momen30
31397.85
-1.7440
BSE SENSEX 50
27093.98
-0.9021
BSE Sensex Nxt50
85416.85
-1.7265
BSE 100 ESG Indx
433.13
-1.0418
BSE Low Volat.
1868.97
-0.7498
BSE Momentum
2207.24
-1.9249
BSE Quality
1848.33
-1.2802
BSE SENSEX Nxt30
38907.39
-1.9881
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