What is nifty
Do you know What is nifty Many of your people will have to talk about nifty? So this post of ours today, What is nifty in this post, we are going to give you complete information about nifty.
What is nifty in stock market
They exchange stock in the share market. If you do not know about the share market then read this post what is share market? Must read Along with the stock exchange in the share market, your nifty 50 will also have to be named. If you guys are investing in the stock market. Or are you thinking of doing
So you must have this information. When it comes to investing in the share market. So nifty definitely happens. If you want to invest money in share, then how to invest in share market?
You must have seen in logo tv, new paper, and news how much number Sensex fell down and how much went up. According to this number, there is a decline in the share market. Let’s see what is nifty – what is nifty in Hindi
Full form of nifty
| Full form of nifty | National Stock Exchange Fifty |
What is Nifty
The full form of NIFTY is National Stock Exchange Fifty. It is a word consisting of two words National and Fifty. It is also known as NIFTY 50. But most people know it by the name of NIFTY.
NIFTY is an important Benchmark of the National Stock Exchange of India . It is an index of 50 major shares listed on the National Stock Exchange. It monitors the shares of 50 major companies of the country. And only 50 company shares are seen in it, which are Listed.
It also takes care of the rapid or slowing in the prices of those 50 shares that have been listed. And also provides all their information. NIFTY 50 is the most important and important stock index of India. This is the highest trend in the country. The second number is BSE Sensex.
In other simple words, NIFTY is like a stock index indexing the stocks of 50 main companies.
Stocks of more than 50 companies cannot be listed in NIFTY.
NIFTY consists of 50 companies indexed from 12 different Sectors.
What is NIFTY’s job?
NIFTY’s job is to provide us information about those 50 companies and the market’s move.
NIFTY tells us the companies whose shares are listed. How is that company working? If the company is doing good work. So its direct effect is seen in the sense of company shares.
And the prices of the shares of that company increase. And when the prices of the shares of a Listed Company go up or increase, then due to this, the Nifty also increases.
In the same way if the companies listed in the index are reducing or not getting profit, then it also directly affects the prices of the shares of that company and the price of shares starts decreasing. And when there is a decrease in the price of Shares, a drop in NIFTY can also be seen.
How to calculate Nifty?
Calculation of Nifty is done from Free Flot Market Capitalization Weted . 2000 companies are listed in the NSE. nifty keeps 50 companies in 50 only. It exchanges the stock of the same 50 companies which have more points. There are only companies which are selected from the sector.
There is an index committee to select 50 companies listed in the Nifty, this committee includes big economists etc.
Share Price x Number of shares = Market Cap
Share Price x Shares Outstanding*IWF = Free Float Market Cap
Current Market Value / Base Index Value = Index Value
Nifty 50 Companies List – 2021
| Nifty 50 Company list | Sector | weight |
| Adani Ports & Special Economic Zone | Transportation | 0.54 |
| Asian Paints Limited | Consumer non Durables | 1.79 |
| Axis Bank Ltd. | Banking | 2.67 |
| Bajaj Auto Limited | Finance | 0.74 |
| Bajaj Finance Ltd. | Finance | 2.33 |
| Bajaj Finserv Ltd. | Finance | 0.95 |
| Bharat Petroleum Corporation Ltd. | Petroleum Products | 0.54 |
| Bharti Airtel Ltd. | Telecom services | 1.99 |
| Britannia Industries Ltd. | Consumer non Durables | 0.77 |
| Cipla Ltd. | Pharmaceuticals | 0.68 |
| Coal India Ltd. | Minerals / Mining | 0.47 |
| Divis Laboratories Ltd. | Pharmaceuticals | 0.82 |
| Dr Reddys Laboratories Ltd. | Pharmaceuticals | 1.05 |
| Eicher Motors Ltd. | Auto | 0.63 |
| GAIL (India) Ltd. | Gas | 0.34 |
| Grasim Industries Ltd. | Cement | 0.62 |
| HCL Technologies Ltd. | software | 1.60 |
| HDFC Bank Ltd. | banking | 11.21 |
| HDFC Life Insurance Company Limited | banking | 0.91 |
| Hero MotoCorp Ltd. | Auto | 0.72 |
| Hindalco Industries Ltd. | non Ferrous metal | 0.59 |
| Hindustan Unilever Ltd. | Consumer non Durables | 3.42 |
| Housing Development Fin. Corp. Ltd. | Finance services | 7.23 |
| ICICI Bank Ltd. | banking | 5.84 |
| Indian Oil Corporation Ltd. | Petroleum Products | 0.38 |
| Indusind Bank Ltd. | banks | 0.87 |
| Infosys Limited | Information Technology | 7.21 |
| ITC Ltd. | Consumer non Durables | 3.03 |
| JSW Steel Ltd. | Ferrous metal | 0.62 |
| Kotak Mahindra Bank Limited | banking | 5.00 |
| Larsen and Toubro Ltd. | Construction Project | 2.45 |
| Mahindra & Mahindra Ltd. | banks | 1.24 |
| Maruti Suzuki India Limited | Auto | 1.67 |
| Nestle India Ltd. | Consumer non Durables | 1.14 |
| NTPC Limited | Power | 0.82 |
| Oil & Natural Gas Corporation Ltd. | oil | 0.51 |
| Power Grid Corporation of India Ltd. | power | 0.88 |
| Reliance Industries Ltd. | Petroleum Products | 11.17 |
| SBI Life Insurance Company Ltd. | banking | 0.59 |
| Shree Cement Ltd. | Cement | 0.58 |
| State Bank of India | banking | 1.68 |
| Sun Pharmaceutical Industries Ltd. | Pharmaceuticals | 0.99 |
| Tata Consultancy Services Ltd. | software | 5.04 |
| Tata Motors Ltd. | Auto | 0.58 |
| Tata Steel Ltd. | Ferrous metal | 0.78 |
| Tech Mahindra Ltd. | software | 0.97 |
| Titan Company Ltd. | life style Watch brand | 1.02 |
| UltraTech Cement Limited | Cement | 0.99 |
| UPL Ltd. | Pesticides | 0.41 |
| Wipro Ltd. | Information Technology | 0.93 |
NIFTY or Economy
Now you must be wondering what can be the relation between NIFTY and economy. So there is a deep connection between NIFTY and the country’s economy.
Like Nifty going up tells us that a company is making good profit. And is making profits. Likewise when the company is doing good work and earning good money.
So the economy of the country is also doing a good job behind it. Because the more Indian companies gain capital. Equally more tax will be added to the Economy of India. Which will surely strengthen India’s Economy.
NIFTY in a way gives us all the information about the rapid and slowdown occurring in the price of the company’s shares. With this we also explain what is the market’s move. If anyone wants to understand the movement of the market, then they should understand the NIFTY.
Benefits of NIFTY
There are many benefits of NIFTY, but below are some of the advantages.
1. Working of NSE, the performance of NSE has to be known at a glance.
2. Information about the going on in the market or the rapid and slowdown in the market is easily available. If NIFTY goes down, then the market is going to slow down. An accurate estimate of market movements is made through Nifty.
3. Through NIFTY, we get information about the country’s economy easily. We find out if the market has gained momentum and nifty is going upwards. So this means that the country’s economy is also going upwards.
How stocks are selected in Nifty 50
- Liquidity
- Listing History
- Trading Frequency
- Futures and Options Segment.
- Float Adjusted Market Capitalization
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