Nifty Energy Live Chart
O 37461.85
H 37461.85
L 37461.85
Nifty Energy Performance
Days Range
Previous Close37,451.55
Open37,461.85
52W Range31,481.65 - 45,022.15
P/E Ratio15.14
Nifty Energy Companies
|
Company
 |
LTP
|
Change
|
Day Range
|
|
|---|---|---|---|---|
|
Adani Green |
₹1,148.05 |
-28.60 (-2.43%) |
₹1,143.00 - ₹1,189.45 |
|
|
Adani Power |
₹519.25 |
-7.55 (-1.43%) |
₹518.00 - ₹530.55 |
|
|
B P C L |
₹307.45 |
3.95 (1.30%) |
₹302.10 - ₹308.95 |
|
|
Coal India |
₹416.95 |
2.90 (0.70%) |
₹415.55 - ₹419.65 |
|
|
I O C L |
₹143.19 |
-0.35 (-0.24%) |
₹142.94 - ₹144.44 |
|
|
NTPC |
₹365.50 |
-3.65 (-0.99%) |
₹364.70 - ₹370.75 |
|
|
O N G C |
₹256.60 |
-0.30 (-0.12%) |
₹255.65 - ₹258.70 |
|
|
Power Grid Corpn |
₹327.55 |
-0.35 (-0.11%) |
₹326.85 - ₹329.00 |
|
|
Reliance Industr |
₹1,278.20 |
-6.65 (-0.52%) |
₹1,276.05 - ₹1,290.00 |
|
|
Tata Power Co. |
₹434.80 |
-0.40 (-0.09%) |
₹434.30 - ₹438.60 |
|
Nifty Energy Sectors
| Sector Name | Advances | No Change | Declined |
|---|---|---|---|
| Crude Oil & Natural Gas | 0 | 1 | 1 |
| Mining & Mineral products | 0 | 1 | 1 |
| Power Generation & Distribution | 3 | 5 | 2 |
| Refineries | 2 | 3 | 1 |
What is NIFTY Energy?
NIFTY Energy is a thematic index on the National Stock Exchange (NSE) which captures the performance of the energy sector in the Indian economy on a real-time basis. It is constituted of 10 stocks that are engaged in the business of petroleum, gas and power etc.
The basic industries eligible for inclusion in the NIFTY Energy index are Coal, Electric Utilities, Gas Transmission/Marketing, Offshore Support Solution Drilling, Oil Exploration & Production, Power – Transmission, and Refineries & Marketing.
This NIFTY Energy index was launched on July 1, 2005, with the base date as January 1, 2001, and the base value at 1000. The NIFTY Energy share price since inception, has breached the levels of 25,000 at ~11 P/E multiples. It is reconstituted semi-annually in order to ensure that it continues to reflect the changing dynamics of the Indian energy industry.
The NIFTY Energy index is owned and managed by NSE Indices Limited, previously known as India Index Services & Products Limited. The Energy index is governed by a three-tier structure comprising:
- BOD of NSE Indices: responsible for managing the index as per a detailed framework
- Index Advisory Committee (Equity): responsible for providing guidance on macro issues related to the index
- Index Maintenance Sub-Committee: responsible for the maintenance of the index’s methodology and stock selection criteria.
NIFTY Energy has a variant in the form of the NIFTY Energy Total Returns Index. This index is ideal for benchmarking fund portfolios and for launching index funds, ETFs, and other structured investment products.
Orgainisation
Nifty Energy
Exchange
NSE
How is NIFTY Energy calculated? How are stocks selected for inclusion in NIFTY Energy?
The NIFTY Energy share price is computed by weighting its 10 stocks on the basis of periodically capped free-float market capitalization relative to a base market capitalization value on a real-time basis. The index is subdivided into two components: Oil Gas & Consumable fuels (54.07%) and Power (45.93%).
For inclusion in the NIFTY Energy index, the following eligibility criteria need to be met:
- Should be listed on the National Stock Exchange.
- Should form a part of NIFTY 500.
- Should have a minimum of 10 stocks.
- If the number of eligible stocks falls below 10, then in such cases, the deficit number of stocks shall be selected from the universe of top 800 ranked stocks based on both average daily turnover and average daily full market capitalization data of the previous six months from NIFTY 500’s universe.
- Should be a part of the energy sector.
- New securities will be included, if their float-adjusted market capitalization is at least 1.5 times of the index’s smallest constituent’s free-float market capitalization.
- Should have a trading frequency of at least 90% in the past six months.
- Should have a listing history of at least six months.
- A recently listed company (IPO) can be included if it meets the above eligibility criteria for a period of three months instead of six months.
- Should adhere to the cap of 33% in case of a single stock and 62% for the top 3 stocks cumulatively at the time of rebalancing.
The index value is calculated as follows –
Index Value = Current Index Market Capitalization/ (Base Free Float Market Capitalization * Base Index Value)
Where,
Current Index Market Capitalization = Shares o/s * IWF * Capping factor * Price
IWF (Investible Weight Factors) = 1 as it is based on market capitalization method
The NIFTY Energy index is rebalanced semi-annually based on six months of data, with the cutoff date being January 31 and July 31 of each year. The replacement of stocks in NIFTY Energy (if any) is implemented on a quarterly basis and is effective from the last trading day of March, June, September, and December after giving four weeks prior notice to the market.
Nifty Energy FAQs
NIFTY Energy index includes the top 10 ranked stocks from the energy industry based on free-float market capitalization.
How to Invest in NIFTY Energy?
You can choose to invest in individual stocks from the NIFTY Energy index with a demat account. So far, there are no index funds or ETFs that solely track the Energy index. However, various thematic funds that include energy sector exposure have been offered by AMCs that you can invest in through SIPs.
Should you Invest in the NIFTY Energy index? Is the investment in NIFTY Energy safe?
The NIFTY Energy index has generated total returns of 19% since inception and 19.65% in the past 5 years. This index experiences volatile returns and has earned over 3% dividend yield. It is trading at ~11x P/E multiples, which is lower than its 3-year average of 16x P/E.
How has NIFTY Energy performed relative to NIFTY 50?
Energy NIFTY is not as closely correlated to the NIFTY 50 index. It has mostly overperformed the benchmark lately, but the returns can become volatile as it is also affected by currency exchange movements, international prices and the government’s tax policy.
How is NIFTY Energy different from its BSE Energy counterpart?
NIFTY Energy has only 10 constituents as compared to BSE Energy’s 26, which makes the latter a more diversified index. However, BSE Energy was launched in 2022, and there is limited quantifiable data about its performance.
What is the objective of NIFTY Energy?
NIFTY Energy index’s basic objective is to serve as the benchmark for evaluating the Indian energy sector. It represents a diversified index of commodities that involves petroleum, gas and power sub-sectors.
