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Article on Nifty 50 and Investment

Nifty 50 is the list of Fifty stocks or shares acquired from 21 different sectors of economy The purpose or advantage of this Index is to select 50 stock from 2 different sectors according to their specified market capitalization and place them on or in top fifty stocks in NSE that is why it is also known as Nifty50. This placing of shares on the top also defines that on high volume trading of these stocks is done and this is the reason they are very liquid and it is not difficult to get in or out of these stocks. Nifty’s stock is indexation is totally based on weighting this is done to show effect of script on whole market for example if value of the share will go down how much it will affect the whole market so this percentage effect is called or is known as weighting of the stock.

Nifty is owned by IISL (India index Services and Products) which is again a fully owned subsidiary of NSE Strategic Investment corporation limited  NIFTY 50 Index is recognized as the largest and the only one financial product in India. NIFTY 50 index is a free float market capitalization index this index was initially calculated on full market capitalization method from 26 june 2009 it has changed the method to free float according to the data collected the all time nifty rose upto 11760 which was it all time high and it's all time low was 11738.50. Another one is Nifty nest 50 also known as Nifty junior it consists of 50 companies whose free float market capitalization came after Nifty 50 .

Investment in stock market is a risky business at some point when anyone decides to invest his or her capital in stock they are aware that this market is volatile prices of shares will go up and down simultaneously what will be the situation is the investor will either make good profits or will lose his investment as we have seen earlier there are two things when investing in shares either one earns profit or loses, the most disturbing phenomenon is when stocks on which people have full belief go down then in this scenario it is difficult for an investor to make money.

Here are some ways by which an individual can make money if his or her stocks go down the first step is to have a margin account this account will be used by you to borrow the shares that you do not own. This method can be used when after you watch and decide that certain shares will or are likely to go down For example if you already have a margin account, you will decide to take 100 shares in X company, which translates into Rs 1000 Rs 10 each share. By shorting these 100 shares, it means that you are merely borrowing those shares from your broker. Soon, as you had visioned, the shares go down to 5 Rs each. If explained in short we can say that you are en cashing the shares which you do not own. for free stock tips visit our website.


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