The Nifty MNC is a thematic index that represents 30 of the top multinational companies (MNCs) with foreign promoter shareholding of more than 50% listed on the National Stock Exchange (NSE). The Nifty MNC stocks list features some of the largest and most liquid multinational corporations operating in India and is designed to offer investors exposure to globally diversified businesses with significant Indian operations.
The entities in the Nifty MNC company list represent various crucial sectors of the economy, such as fast-moving consumer goods (FMCG), capital goods, automobile and auto components, healthcare, mining, financial services, and information technology (IT), among others.
As of November 29, 2024, the top 5 Nifty MNC stocks and their respective weights in the index are as follows:
Maruti Suzuki India Limited - 9.66%
Hindustan Unilever Limited - 9.44%
Nestle India Limited - 8.42%
Vedanta Limited - 8.09%
Siemens Limited - 7.02%
The Nifty MNC index enables market participants to track the performance of a specialised segment of the Indian stock market featuring global corporations operating in India. It also serves as a performance benchmark tool for investors, mutual funds, and exchange-traded funds (ETFs) focused on multinational companies.
Selection Criteria for Nifty MNC Stocks
To be eligible for inclusion in the Nifty MNC stocks list, the companies listed on the National Stock Exchange must meet the following specific requirements.
The company’s foreign promoter shareholding must be above 50%.
The company must feature in the Nifty 500 broad-market index at the time of review. If the number of eligible companies in the Nifty 500 index is below 10, the deficit shall be filled by considering the top 800 stocks in terms of average daily full market capitalisation and average daily turnover for the last six months from the date of the review.
The company must have at least 90% trading frequency in the last six months.
The company must have a listing history of at least 1 month as of the cut-off date for rebalancing.
The final list of companies to be selected will be done based on the free-float market capitalisation, with entities having high market capitalisation being given preference.
How is the Value of Nifty MNC Calculated?
The value of the Nifty MNC index is calculated using the free-float market capitalisation-weighted methodology. This essentially means that only the shares available for public trading are considered when determining each company's weight in the index. Shares held by the promoters, restricted shares, and shares earmarked for employee stock options are excluded.
The mathematical formula used for the calculation of the Nifty MNC index value is as follows:
Nifty MNC Index Value = [Free-Float Market Cap of All Index Constituents ÷ (Base Index Value * Base Free-Float Market Cap)]
Here, the base index value is 1,000 and the base free-float market capitalisation represents the free-float market cap of all the index’s constituents as of the base date of January 02, 1995.
The Nifty MNC index is reviewed and rebalanced semi-annually on January 31 and July 31 respectively. The periodic review and rebalancing of the index ensures that it accurately tracks and reflects the performance of multinational companies with promoter shareholding of more than 50%.
Nifty MNC FAQ's
Investing in passively managed mutual funds and exchange-traded funds (ETFs) that track the Nifty MNC is the best way to gain exposure to the index. Alternatively, investors may also directly invest in the companies featured in the index in the same proportion and weightage.
Investing in Nifty MNC through mutual funds or exchange-traded funds is a good way to leverage the growth potential of global corporations operating in India. However, as with any market-linked investment, the Nifty MNC index also carries certain risks, making it suitable for investors who can tolerate risk and volatility. It is advisable to consider your financial goals, risk tolerance levels, and investment horizon when deciding to invest in the index.
The Nifty MNC index’s beta coefficient for the last 5 years is 0.72 with respect to the Nifty 50. This essentially means that the index has shown lower volatility compared to the Nifty 50 due to the defensive nature of multinational companies. However, in terms of returns, the Nifty MNC has generated 15.93% in the last 5 years compared to the Nifty 50, which generated 14.89% in the same period.
The goal of Nifty MNC is to track the performance of the most liquid multinational companies listed on the NSE. Another objective of the index is to serve as a benchmark for mutual funds and exchange-traded funds.
The Nifty MNC index consists of 30 companies with foreign promoter holding of more than 50% listed on the National Stock Exchange.
Other Indices
Indices Name
Price
Price Change(% change)
Nifty Alpha 50
49828.45
2.1981
Nifty 100 Liq 15
7170.5
1.5414
Nifty 10 B-G Sec
2604.72
0.2174
Nifty 8-13 G-Sec
2968.31
0.2147
Nifty10 BG-Sec-C
872.33
0.1987
Nifty GS 4 8Yr
3246.56
0.0678
Nifty GS 11 15Yr
3243.14
0.1544
Nifty GS 15YrPlu
3440.32
0.3149
Nifty100 ESG
4859.6
1.2438
Nifty200 Qual 30
19755
0.8191
Nifty Alpha LV30
25640.8
1.6691
Nifty200 Momen30
30515.1
2.2605
BSE SENSEX 50
25149.98
1.1806
BSE Sensex Nxt50
82005.78
1.5990
BSE 100 ESG Indx
403.22
1.2632
BSE Low Volat.
1734.82
0.9297
BSE Momentum
2146.02
2.0427
BSE Quality
1821.97
1.5432
BSE SENSEX Nxt30
39867.28
1.3346
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