Create an Account

Its Free and always will be!

Sign up or login with your social accounts
Birthday
Day

What is Nifty

What is Nifty

The word NIFTY originates from 2 words, `National' and 'Fifty'.

NIFTY basically means the index of the 50 most actively traded stocks from across all sectors. NIFTY represents the top stocks of the NSE and when we talk about NIFTY going up, it means that all the heavyweight stocks of NSE across all sectors are moving up.

Most of the stock trading in the country is done through NSE and BSE. There are other stock exchanges as well, like the Calcutta stock exchange, but they are not that popular.

NIFTY consists of top 50 companies from 24 different sectors. NIFTY is computed from the performance of top stocks from different sectors.

Some mutual funds use NIFTY as a benchmark. The performance of the mutual funds is assessed against the performance of the NIFTY. On NSE, Futures and Options are available for trading with the NIFTY as an underlying index.

NIFTY is calculated by using the market capitalization weighted method according to which weights are assigned according to the size of the company. Larger the size, larger the weightage.

4 main factors are to be taken into account when calculating the NIFTY.

  • The base year is taken as 1995
  • The base value is set to 1000
  • NIFTY is based on 50 actively traded stocks of the NSE.
  • 50 top stocks from selected from 24 sectors

The following link will give a fair idea about the Nifty Forecast (Nifty Levels) on a daily basis to understand the market movements : https://www.dynamiclevels.com/en/nifty/nifty-forecast

Rate this blog entry:
Share Market for Beginners
Eye of the tiger (and the cubs) : Investing - Juli...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Monday, 17 June 2019

Captcha Image

Popular Investing Books

Burton G Malkiel
Howard Marks
Peter Lynch
Spencer B Meredith
Jack Murrin
Randy Cepuch

Search Blogs

Most Popular Authors

Top 100 Investment Blogs

Reduce your Brokerage by 100%!!

 465 members logged in


Be a Smart & Well Informed Investor!
Join Today its Free.
Register or Login with just one Click using your Social Account