Nifty Mnc Overview | Indian Indices by Motilal Oswal

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What is NIFTY MNC?

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 such as FMCG, capital goods, automobile and auto components, healthcare, mining, financial services, and information technology (IT). As of November 29, 2024, the top 5 Nifty MNC stocks are: 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 ETFs focused on multinational companies.

Selection Criteria for Nifty MNC Stocks

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 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.

The company must have at least 90% trading frequency in the last six months and a listing history of at least 1 month as of the cut-off date for rebalancing. The final list of companies is selected based on free-float market capitalisation.

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. Only the shares available for public trading are considered; shares held by promoters, restricted shares, and shares earmarked for employee stock options are excluded. The base index value is 1,000 and the base free-float market capitalisation represents the free-float market cap of all 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, ensuring it accurately tracks the performance of multinational companies with promoter shareholding of more than 50%.

Index FAQ's

Investing in passively managed mutual funds and 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 ETFs 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.

The Nifty MNC index's beta coefficient for the last 5 years is 0.72 with respect to the Nifty 50, meaning the index has shown lower volatility compared to the Nifty 50. In terms of returns, the Nifty MNC has generated 15.93% in the last 5 years compared to the Nifty 50's 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.