What is Nifty? Nifty Meaning Explained for Beginners.

What is Nifty? Nifty Meaning Explained– The NIFTY 50 index is National Stock Exchange of India’s benchmark stock market index for Indian equity market. Nifty is owned and managed by India Index Services and Products (IISL).

• The base year is taken as 1995 and the base value is set to 1000.
• Nifty is calculated on 50 stocks actively traded in the NSE
• 50 top stocks are selected from 24 sectors.

Nifty Meaning: Just as the Sensex which was introduced by the Bombay stock exchange(BSE), Nifty is a major stock index in India introduced by the National stock exchange(NSE).

Also Read: What is Sensex?

NIFTY 50 Index is computed using free float market capitalization method. NIFTY 50 can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs, and structured products.

*And the 51st stock is: The Tata Motors DVR. This is a differential voting rights share of Tata Motors. Which is already in the Nifty! Reference: https://www.nseindia.com/content/indices/Method_Nifty_50.pdf https://www.nseindia.com/content/indices/ind_nifty50list.csv https://www.nseindia.com/content/indices/ind_nifty50.pdf

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If you want to read further, here is a great book about Indian Stock Market: Bulls, Bears and Other Beasts: A Story of the Indian Stock Market by Santosh Nair

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Kritesh Abhishek

Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting