Nifty 50

Search Dictionary

Definition of 'Nifty 50'

The Nifty 50 is a stock market index of the 50 largest and most liquid companies listed on the Bombay Stock Exchange (BSE). It is a free-float market-capitalization-weighted index, which means that the weight of each company in the index is determined by its market capitalization. The Nifty 50 is the most widely followed stock index in India and is used as a benchmark for the performance of the Indian stock market.

The Nifty 50 was launched on April 29, 1991, as a joint initiative of the BSE and the National Stock Exchange of India (NSE). The index was originally based on the 20 most liquid stocks on the BSE, but it was expanded to 50 stocks in 1994. The Nifty 50 is a price-weighted index, which means that the price of each stock in the index is multiplied by its weight to determine the index value.

The Nifty 50 is a market-capitalization-weighted index, which means that the weight of each company in the index is determined by its market capitalization. The market capitalization of a company is the value of its outstanding shares, which is calculated by multiplying the share price by the number of shares outstanding.

The Nifty 50 is a free-float market-capitalization-weighted index, which means that the weight of each company in the index is determined by its free-float market capitalization. The free-float market capitalization of a company is the value of its outstanding shares that are available for trading on the open market.

The Nifty 50 is a broad-based index, which means that it represents a wide range of sectors and industries. The index includes companies from the following sectors:

* Financials
* Information Technology
* Healthcare
* Consumer Goods
* Energy
* Materials
* Telecom
* Utilities

The Nifty 50 is a liquid index, which means that there is a lot of trading activity in the index. The average daily trading volume of the Nifty 50 is around Rs. 10,000 crore.

The Nifty 50 is a volatile index, which means that its value can fluctuate significantly over short periods of time. The Nifty 50 has a historical volatility of around 15%.

The Nifty 50 is a benchmark index, which means that it is used as a reference point for the performance of the Indian stock market. The Nifty 50 is also used as a benchmark for the performance of mutual funds and other investment products.

The Nifty 50 is a popular index, which means that it is widely followed by investors and traders. The Nifty 50 is also a liquid index, which means that it is easy to trade.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.