Nifty Energy is a stock market index in India that tracks the performance of the top energy sector companies listed on the National Stock Exchange (NSE). It includes companies involved in oil, gas, power, and other energy-related businesses, providing a benchmark for the sector’s performance in the market.
The table below shows the NIFTY Energy stocks based on the highest market capitalisation and 1-year return.
| Stock Name | Close Price ₹ | Market Cap (In Cr) | 1Y Return % |
| Reliance Industries Ltd | 2929.65 | 1985700.07 | 26.38 |
| NTPC Ltd | 435.35 | 427489.08 | 80.49 |
| Oil and Natural Gas Corporation Ltd | 292.05 | 367917.1 | 58.21 |
| Power Grid Corporation of India Ltd | 344.15 | 326830.03 | 72.46 |
| Coal India Ltd | 502.35 | 313917.26 | 72.10 |
| Adani Green Energy Ltd | 1807.80 | 298582.2 | 85.62 |
| Indian Oil Corporation Ltd | 171.33 | 253292.65 | 90.37 |
| Adani Power Ltd | 644.75 | 251935.25 | 75.82 |
| Bharat Petroleum Corporation Ltd | 348.85 | 160042.06 | 104.39 |
| Tata Power Company Ltd | 471.80 | 154041.94 | 78.75 |
Introduction To Nifty Energy Index
Reliance Industries Ltd
The Market Cap of Reliance Industries Ltd is Rs. 1,985,700.07 crores. The stock’s monthly return is -3.38%. Its one-year return is 26.38%. The stock is 9.83% away from its 52-week high.
Reliance Industries Limited is a company based in India that is involved in various activities such as hydrocarbon exploration and production, petroleum refining, marketing, petrochemicals, advanced materials, composites, renewables (solar and hydrogen), retail, and digital services.
The company operates in segments including Oil to Chemicals (O2C), Oil and Gas, Retail, and Digital Services. The O2C segment comprises refining, petrochemicals, fuel retailing, aviation fuel, bulk wholesale marketing, transportation fuels, polymers, polyesters, and elastomers. Its assets in the O2C business include aromatics, gasification, multi-feed and gas crackers, downstream manufacturing facilities, logistics, and supply-chain infrastructure.
NTPC Ltd
The Market Cap of NTPC Ltd is Rs. 427,489.08 crores. The stock’s monthly return stands at 7.24%. Over the course of one year, the return is 80.49%. Additionally, the stock is currently 3.01% away from its 52-week high.
NTPC Limited is an India-based company that specializes in power generation. The company’s main focus is on producing and selling large quantities of power to State Power Utilities. NTPC operates in two main segments: Generation and Others.
The Generation segment is responsible for producing and selling power to state power utilities, while the Other segment provides services such as consultancy, project management, energy trading, and more. NTPC owns and operates a total of 89 power stations in different Indian states, either on its own or through joint ventures and subsidiaries.
Oil and Natural Gas Corporation Ltd
The Market Cap of Oil and Natural Gas Corporation Ltd is Rs. 367,917.10 crores. The stock’s monthly return is -10.65%. Its one-year return stands at 58.21%. The stock is currently 18.13% away from its 52-week high.
Oil and Natural Gas Corporation Limited is an Indian company that specializes in the exploration, production, refining, and marketing of crude oil and natural gas. The company operates in various business segments including Exploration and Production, as well as Refining and Marketing.
Its activities involve exploring, developing, and producing crude oil, natural gas, and related products within India, as well as acquiring oil and gas assets internationally for exploration, development, and production. Additionally, the company is involved in downstream activities such as refining and marketing petroleum products, petrochemicals, power generation, LNG supply, pipeline transportation, SEZ development, and helicopter services.
Power Grid Corporation of India Ltd
The Market Cap of Power Grid Corporation of India Ltd is Rs. 326,830.03 crores. The stock’s monthly return is 4.36%. Its one-year return is 72.46%. The stock is 6.42% away from its 52-week high.
The Power Grid Corporation of India Limited is a power transmission company that focuses on the planning, implementation, operation, and maintenance of the Inter-State Transmission System (ISTS), as well as providing telecom and consulting services. The company has three main segments: Transmission Services, Consulting Services, and Telecom Services.
Within Transmission Services, the company is responsible for transmitting bulk power across different states of India through extra high voltage/high voltage (EHV/HV) networks. The Consulting Services segment offers a wide range of consultancy services in the transmission, distribution, and telecom sectors, including planning, design, engineering, procurement management, operation and maintenance, financing, and project management.
Coal India Ltd
The Market Cap of Coal India Ltd is Rs. 313,917.26 crores. The stock’s monthly return is -2.60%. Its one-year return is 72.10%. The stock is 8.20% away from its 52-week high.
Coal India Ltd., an Indian coal mining company, operates in 83 mining areas across eight states in India through its subsidiaries. The company oversees a total of 322 mines, comprising 138 underground, 171 opencast, and 13 mixed mines, as well as various facilities like workshops and hospitals.
Additionally, Coal India Ltd. has 21 training Institutes and 76 Vocational Training Centers. The company also runs the Indian Institute of Coal Management (IICM), a corporate training institute offering multi-disciplinary programs.
Adani Green Energy Ltd
The Market Cap of Adani Green Energy Ltd is Rs. 298,582.20 crores. The stock’s monthly return is -3.58%. Its one-year return is 85.62%. The stock is 20.26% away from its 52-week high.
AGEL, an Indian holding company, is involved in renewable energy generation and related activities. It specializes in developing, constructing, owning, operating, and maintaining large-scale solar power, wind power, hybrid projects, and solar parks that are connected to the grid.
The company operates in various markets within India, spanning across approximately 91 locations in different states. AGEL’s power projects are primarily situated in Gujarat Punjab, Rajasthan, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.
Indian Oil Corporation Ltd
The Market Cap of Indian Oil Corporation Ltd is Rs. 253,292.65 crores. The stock’s monthly return is 0.20%. Its one-year return is 90.37%. The stock is 14.87% away from its 52-week high.
Indian Oil Corporation Limited is an oil company based in India that operates in various segments including Petroleum Products, Petrochemicals, and Other Business Activities. The Other Business Activities segment encompasses gas, oil and gas exploration, explosives, and cryogenic business, as well as windmill and solar power generation.
The company is involved in the entire hydrocarbon value chain, from refining and pipeline transportation to marketing, exploration, production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources, and global downstream operations. It has a wide network of fuel stations, storage terminals, depots, aviation fuel stations, LPG bottling plants, and lube blending plants.
Adani Power Ltd
The Market Cap of Adani Power Ltd is Rs. 251,935.25 crores. The stock’s monthly return stands at -2.10%. Its one-year return is 75.82%. Additionally, the stock is 38.95% away from its 52-week high.
Adani Power Limited, a holding company, operates as a thermal power producer in India. It boasts a power generation capacity of about 12,450 megawatts (MW), including 12,410 MW from thermal power plants and a 40 MW solar power project. The company primarily emphasizes power generation services.
Bharat Petroleum Corporation Ltd
The Market Cap of Bharat Petroleum Corporation Ltd is Rs. 160,042.06 crores. The stock’s monthly return is 2.55%. Its one-year return stands at 104.39%. The stock is currently 7.78% away from its 52-week high.
Bharat Petroleum Corporation Limited, an Indian company, is engaged in the production, refining, and distribution of petroleum products. Its diverse business portfolio encompasses fuel services, Bharatgas, MAK Lubricants, refineries, gas operations, industrial and commercial solutions, international trade, and proficiency testing services.
Under its fuel services umbrella, the company offers various options like SmartFleet, Speed 97, UFill, PetroCard, SmartDrive, and more. Bharatgas aims to provide comprehensive solutions and support for businesses seeking energy-related products, ensuring quality and reliability. The company delivers a range of high-quality products such as automotive engine oils, gear oils, transmission oils, and specialty oils. Its refining segment includes Mumbai Refinery, Kochi Refinery, and Bina Refinery.
Tata Power Company Ltd
The Market Cap of Tata Power Company Ltd is Rs. 154,041.94 crores. The stock’s monthly return is 11.08%. Its one-year return stands at 78.75%. The stock is currently 4.89% away from its 52-week high.
The Tata Power Company Limited, based in India, operates as an integrated power company focusing on electricity generation, transmission, and distribution. The company’s operations are divided into several segments which include Generation, Renewables, Transmission and Distribution, and Others.
The Generation segment involves producing power from hydroelectric and thermal sources, while the Renewables segment focuses on generating power from wind and solar sources. The Transmission and Distribution segment oversees the networks for transmitting and distributing electricity, as well as selling power to retail customers and engaging in power trading.
What is the Nifty Energy?
Nifty Energy is an index that tracks the performance of energy sector stocks listed on the National Stock Exchange of India. This index encompasses various companies involved in energy generation, distribution, and management, providing investors with insights into the sector’s overall health and trends.
The Nifty Energy index serves as a benchmark for investors looking to gauge the energy market’s performance. It includes major players in the industry, reflecting market movements and facilitating informed investment decisions. By monitoring this index, stakeholders can identify opportunities and risks within the energy sector.
Nifty Energy Weightage
The table below shows the Nifty Energy weightage.
| Company’s Name | Weight(%) |
| Reliance Industries Ltd. | 32.64 |
| NTPC Ltd. | 14.92 |
| Power Grid Corporation of India Ltd. | 11.37 |
| Coal India Ltd. | 8.23 |
| Oil & Natural Gas Corporation Ltd. | 8.21 |
| Tata Power Co. Ltd. | 5.79 |
| Bharat Petroleum Corporation Ltd. | 5.09 |
| Adani Green Energy Ltd. | 4.88 |
| Indian Oil Corporation Ltd. | 4.80 |
| Adani Power Ltd. | 4.07 |
Nifty Energy Stocks List Based On 1M Return
The table below shows the Nifty energy stocks list based on 1-month return.
| Stock Name | Close Price ₹ | 1M Return % |
| Tata Power Company Ltd | 471.80 | 11.08 |
| NTPC Ltd | 435.35 | 7.24 |
| Power Grid Corporation of India Ltd | 344.15 | 4.36 |
| Bharat Petroleum Corporation Ltd | 348.85 | 2.55 |
| Indian Oil Corporation Ltd | 171.33 | 0.2 |
| Adani Power Ltd | 644.75 | -2.1 |
| Coal India Ltd | 502.35 | -2.6 |
| Reliance Industries Ltd | 2929.65 | -3.38 |
| Adani Green Energy Ltd | 1807.80 | -3.58 |
| Oil and Natural Gas Corporation Ltd | 292.05 | -10.65 |
Nifty Energy Stocks Based On Dividend Yield
The table below shows the Nifty energy stocks based on dividend yield.
| Stock Name | Close Price ₹ | Dividend Yield % |
| Indian Oil Corporation Ltd | 171.33 | 6.52 |
| Bharat Petroleum Corporation Ltd | 348.85 | 5.61 |
| Coal India Ltd | 502.35 | 5.01 |
| Oil and Natural Gas Corporation Ltd | 292.05 | 4.19 |
| Power Grid Corporation of India Ltd | 344.15 | 3.2 |
| NTPC Ltd | 435.35 | 1.76 |
| Tata Power Company Ltd | 471.80 | 0.42 |
| Reliance Industries Ltd | 2929.65 | 0.34 |
| Adani Power Ltd | 644.75 | 0.01 |
How is the Nifty Energy Index Value Calculated?
The Nifty Energy Index Value is determined based on the weighted performance of various companies within the energy sector listed on the National Stock Exchange (NSE) of India. This index reflects the market capitalization of its constituent stocks, providing investors with a snapshot of the energy sector’s performance.
To calculate the index, the market capitalization of each company is considered, giving more influence to larger firms. The overall index value is derived from these weighted calculations, ensuring that significant players in the energy industry substantially impact the index’s movement and trends.
How Stocks Are Selected for the Nifty Energy Index?
The selection process for stocks in the Nifty Energy Index involves evaluating companies primarily operating in the energy sector. Factors such as market capitalization, liquidity, and financial performance are crucial in determining which stocks meet the criteria for inclusion.
Additionally, the index aims to represent a diverse range of companies within the energy domain, including renewable sources and traditional energy providers. Regular reviews and rebalancing ensure that the index reflects the current state of the energy market, maintaining its relevance and accuracy.
History of the Nifty Energy
The Nifty Energy Index was introduced by the National Stock Exchange (NSE) of India on November 1, 2004. It was created to track the performance of the top energy companies in the country, including sectors like oil, gas, power, and coal. The index includes major energy players such as Reliance Industries, NTPC, and ONGC. Over the years, the index has reflected India’s growing energy demand and evolving energy policies, becoming a key benchmark for investors interested in the energy sector’s performance.
Key Factors of Nifty Energy Index Performance
The factor to consider when evaluating the Nifty Energy Index’s performance is global energy prices. Fluctuations in oil, gas, and other energy commodity prices significantly impact the revenues and profitability of companies in this sector.
- Government Policies
Energy companies are heavily influenced by regulations, subsidies, and tariffs. Changes in government policies, including environmental regulations and energy subsidies, can directly impact operational costs and profitability, affecting stock performance. - Global Economic Conditions
Economic growth drives energy demand. When global economies are expanding, there is increased consumption of energy, boosting the revenue of energy companies. Conversely, slowdowns can reduce demand and negatively affect stock performance. - Crude Oil Prices
The majority of companies in the Nifty Energy Index are tied to oil production and distribution. Fluctuations in global crude oil prices can lead to significant gains or losses, influencing the overall index performance. - Renewable Energy Adoption
The shift toward renewable energy affects traditional energy companies. Increased investment in clean energy sources like solar or wind can disrupt traditional markets and may impact the stock prices of conventional energy firms. - Foreign Exchange Rates
Energy companies involved in international trade are sensitive to currency fluctuations. A weaker rupee against the dollar can increase import costs for energy firms, affecting profitability and leading to lower index performance.
Benefits of Investing in the Nifty Energy
The primary benefit of investing in the Nifty Energy Index is gaining exposure to India’s leading energy companies, allowing investors to capitalize on the growth and demand in the oil, gas, and power sectors.
- Diversified Energy Sector Exposure
Investing in Nifty Energy provides access to a wide range of companies across various energy sectors like oil, gas, and power, reducing risk by diversifying investments across multiple energy industries. - Long-Term Growth Potential
With India’s increasing energy demand, the energy sector has strong growth prospects. As the country expands its infrastructure and consumption, energy companies stand to benefit, offering potential long-term capital appreciation for investors. - Stable Dividend Income
Many energy companies in the index are well-established and offer regular dividend payments, providing investors with a stable income stream in addition to potential capital gains from stock price appreciation. - Resilience to Economic Shifts
The energy sector is often more resilient to economic fluctuations because energy is a basic necessity. Demand remains relatively stable, providing a measure of protection for investors even during economic downturns. - Potential Gains from Commodity Price Fluctuations
Energy companies benefit from rising commodity prices, especially in oil and gas. Investors in the Nifty Energy Index can profit from upward trends in global energy prices, boosting stock prices and returns.
Risks of Investing in the Nifty Energy
The main risk of investing in the Nifty Energy Index is the sector’s vulnerability to volatile global energy prices. Sudden fluctuations in oil, gas, and other energy commodities can significantly impact company profitability and stock performance.
- Regulatory Risks
Energy companies are subject to strict government regulations, including environmental laws and energy tariffs. Changes in these regulations can increase operational costs or limit business activities, negatively impacting profits and stock prices. - Dependence on Global Energy Prices
The performance of many companies in the Nifty Energy Index is closely tied to global oil and gas prices. A drop in prices can lead to lower revenues and reduced stock values for energy companies. - Currency Fluctuations
Energy companies engaged in international trade are vulnerable to exchange rate fluctuations. A stronger rupee can make exports less competitive, while a weaker rupee increases import costs, negatively affecting profitability. - Technological Disruption
The rise of renewable energy and advancements in energy technology can disrupt traditional energy markets. Companies that fail to adapt to these changes risk losing market share and experiencing a decline in stock performance. - Environmental and Social Risks
Energy companies face increasing pressure regarding environmental sustainability. Failing to meet climate goals or facing legal action over environmental issues could harm a company’s reputation and financial performance, affecting investor returns.
How To Invest in Nifty Energy?
Investing in Nifty Energy involves understanding the key players within the sector and tracking their performance. Begin by analyzing the index components and their financial health. Consider allocating funds through mutual funds or exchange-traded funds (ETFs) that focus on energy. Additionally, stay updated on market trends and policy changes that affect energy stocks. For a seamless investment experience, you can open an account with Alice Blue.
Future of Nifty Energy
The future of Nifty Energy is projected to be influenced by various factors including advancements in renewable energy technologies, government policies promoting sustainability, and the ongoing demand for cleaner energy sources. These elements are likely to shape the performance and growth prospects of energy companies in the index.
Investors may focus on trends such as increased investment in green energy and a shift towards electric vehicles, which could lead to greater profitability for companies within the Nifty Energy sector. As global awareness of climate change rises, firms that adapt to these changes may see significant benefits in the coming years.
FAQs – Nifty Energy
Nifty Energy refers to a sectoral index that represents the performance of companies in the energy sector of the Indian stock market. This index includes various segments such as oil, gas, renewable energy, and power generation.
The Best Nifty Energy #1: Reliance Industries Ltd
The Best Nifty Energy #2: NTPC Ltd
The Best Nifty Energy #3: Oil and Natural Gas Corporation Ltd
The Best Nifty Energy #4: Power Grid Corporation of India Ltd
The Best Nifty Energy #5: Coal India Ltd
The top 5 stocks are based on market capitalization.
The objective of the Nifty Energy Index is to track the performance of the top energy companies listed on the National Stock Exchange (NSE) of India. It provides investors with a benchmark for the energy sector, reflecting the overall health and trends in industries like oil, gas, and power.
Nifty Energy operates as a stock market index that tracks the performance of companies in the energy sector. It provides investors with insights into market trends and helps them gauge the financial health and growth potential of energy-related businesses. This index includes various energy-related stocks, including those from renewable sources, traditional oil, and gas companies. By analyzing the movements of these stocks, investors can make informed decisions regarding investments in energy, based on market dynamics and sector performance.
Nifty Energy is overseen by the National Stock Exchange of India (NSE), which manages and operates various indices to reflect the performance of specific sectors. It encompasses key companies in the energy sector, providing insights into market trends and investment opportunities. The index represents a selection of leading firms in the energy industry, including those involved in oil, gas, and renewable energy sources. By tracking these companies, Nifty Energy enables investors to gauge sector performance and make informed decisions regarding their portfolios.
Nifty Energy is a sectoral index launched by the National Stock Exchange (NSE) of India on October 1, 2001. As of 2024, Nifty Energy is 23 years old. It tracks the performance of companies within the energy sector, including those involved in power, oil, gas, and coal.
To invest in Nifty Energy in India, you can use brokerage platforms like Alice Blue. Open a demat and trading account with Alice Blue, then invest in Nifty Energy Exchange-Traded Funds (ETFs) or mutual funds, or trade-in individual energy stocks listed in the Nifty Energy Index.
The Nifty Energy Index comprises 10 companies listed on the National Stock Exchange (NSE) of India. These companies represent a broad spectrum of the energy sector, including oil, gas, power generation, and renewable energy. Some prominent companies in the index include Reliance Industries, NTPC, ONGC, Power Grid Corporation, and Indian Oil Corporation. The index is designed to reflect the performance of India’s leading energy companies and offers investors exposure to the sector’s growth and trends in both traditional and renewable energy markets.
Stocks for the Nifty Energy Index are chosen based on market capitalization and liquidity, specifically from companies involved in energy-related sectors like power, oil, gas, and coal. These companies must meet eligibility criteria, including being part of the Nifty 500 and maintaining sufficient trading volumes and financial performance.
Yes, you can buy Nifty Energy stocks today and sell them tomorrow, which is a form of short-term trading. This strategy, called day trading or intraday trading, takes advantage of short-term price fluctuations. However, it requires careful market analysis and risk management to make profitable decisions.
Investing in Nifty Energy can be beneficial, as it includes leading companies in India’s growing energy sector, covering oil, gas, power, and renewable energy. With the increasing focus on energy demand and transition to cleaner energy sources, it offers long-term growth potential. However, the sector is also sensitive to regulatory changes and global energy prices, requiring careful risk assessment.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
