Nifty Media Stock

What is Nifty Media?

Launched on July 19, 2011, Nifty Media is a sectoral market index of the National Stock Exchange (NSE). It features 10 of the top entities in terms of market capitalisation from the media and entertainment sector listed on the NSE.

The index has been designed to help investors and other market participants track the sector’s performance. The Nifty Media index can also be used as a benchmark to compare the performance of investments in the media and entertainment sector.

The Nifty Media stock list contains companies operating in the broadcasting, print media, publishing, film production, and digital content domains of the sector. As of November 29, 2024, the top 5 entities in the index and their respective weightage are as follows:

• Zee Entertainment Enterprises Limited - 24.30%
• PVR INOX Limited - 22.26%
• Sun TV Network Limited - 13.12%
• Network18 Media & Investments Limited - 10.50%
• Nazara Technologies Limited - 8.36%

The Nifty Media index is governed through a three-tier system involving NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee. The governing bodies ensure that the Nifty Media stock list is reviewed and rebalanced semi-annually on January 31 and July 31. The periodic review ensures that the index accurately represents the market dynamics of the media and entertainment sector.

Nifty Media Stocks Selection Criteria

For a company to be included in the Nifty Media index, it must meet certain stringent criteria, such as market capitalisation, liquidity, and minimum listing history. Here is a quick overview of the criteria that companies must meet to be considered for inclusion in the index.

The company must operate within the media sector.

At the time of review, the company must be a part of the Nifty 500 broad market index. If the number of stocks within the media sector in the Nifty 500 is below 10, the deficit shall be filled by selecting media companies from the top 800 stocks in the NSE in terms of daily average turnover and daily average full market capitalisation for the previous six months.

The company must possess a trading frequency of at least 90% in the last six months.

As of the cut-off date, the company must have a listing history of at least 1 month.

Once the list of companies eligible to be included in the Nifty Media stock list is prepared, the final inclusion is done based on the free-float market capitalisation of the eligible companies.

Note : The maximum weightage of each stock in the index is capped at 33%. Additionally, the weightage of the top 3 stocks in the index is also restricted to 62%.

How is Nifty Media’s Value Calculated?

The calculation of the value of the Nifty Media index is done using the free-float market capitalisation method. The formula that is used to determine the index’s value is as follows:

Here, the base market cap represents the free-float market capitalisation of all of the index’s constituents on the base date of December 30, 2005. The base index value, meanwhile, is set at 1,000.

The Nifty Media index’s value is calculated on a real-time basis, with the index being rebalanced semi-annually to ensure it represents the Indian media and entertainment sector accurately.

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