Stock Market "NIFTY"
Stock market "NIFTY" is the key stock index of the National Stock Exchange (NSE) of India. It is also referred to as NIFTY 50.
NIFTY 50 is a stock market index that represents the performance of India's 50 largest, most stable, and highest-quality companies in a single number.
It is created and managed by the company NSE Indices.
i What is NIFTY & Why is it Important?
Nifty serves as the primary benchmark for the Indian economy.
- Used to gauge the overall status/health of the Indian stock market.
- Investors use it to see whether the market is going up or down.
- Reflects the performance of large "blue-chip" companies.
- Serves as the underlying benchmark for Mutual Funds, ETFs, etc.
S Which Sectors are in Nifty 50?
How is NIFTY Calculated?
It uses free-float market capitalization weighted method
- At what value a company is traded in the market.
- How many of its shares are available for "public trading".
Nifty is calculated based on these factors.
Difference between Nifty & Sensex
| Feature | Nifty | Sensex |
|---|---|---|
| Market | NSE | BSE |
| Companies | 50 | 30 |
| Inception Year | 1996 | 1986 |
W How Does Nifty 50 Work?
🔸 1. Free-float Market Capitalization Weighted Index
Nifty determines the importance of each company based on its market value (market cap).
🔸 2. Higher weightage for large companies
Large companies like Reliance, HDFC Bank, and ICICI Bank will have a greater impact on Nifty. For example, Reliance alone might have 8–10% weight.
🔸 3. Company changes every 6 months
NSE can add or remove companies every six months.
🔸 4. What does "Nifty Up/Down" mean?
- When stocks are cheap and investors buy heavily, Nifty goes UP.
- If they sell off or if there is a crisis, it comes DOWN.
How to Invest in Nifty 50?
- Mutual Fund (Nifty Index Fund): Low risk, smart method.
- ETF (Exchange Traded Fund): Lower commission, tracks Nifty 50 directly.
- Direct Stocks: Rare; would require buying all 50 stocks individually.
# Nifty 50 – Complete Company List (Latest)
These are the 50 blue-chip companies typically included in NIFTY 50:
1. Banks & Financial Services
- HDFC Bank, ICICI Bank, State Bank of India (SBI)
- Kotak Mahindra Bank, Axis Bank, IndusInd Bank
- Bajaj Finance, Bajaj Finserv
- HDFC Life Insurance, SBI Life Insurance, ICICI Prudential Life, ICICI Lombard
2. IT (Information Technology)
- TCS, Infosys, Wipro
- HCL Technologies, Tech Mahindra
4. FMCG (Fast Moving Consumer Goods)
- Hindustan Unilever (HUL), ITC, Nestle India
- Britannia, Dabur, Asian Paints
3. Energy / Oil & Gas
- Reliance Industries, ONGC, Coal India
- Power Grid, NTPC
5. Pharma / Healthcare
- Sun Pharma, Cipla, Dr. Reddy’s, Divi’s Laboratories
6. Auto & Auto Ancillary
- Tata Motors, Mahindra & Mahindra, Maruti Suzuki
- Hero MotoCorp, Bajaj Auto, Eicher Motors (Royal Enfield)
7. Metals & Mining
- Tata Steel, JSW Steel, Hindalco
- UltraTech Cement, Grasim Industries, Shree Cement
8. Telecom
- Bharti Airtel
- Vodafone Idea (Subject to change)
9. Real Estate / Construction
- Larsen & Toubro (L&T)
10. Retail / Consumer Services
- Avenue Supermarts (DMart), Titan Company
- Adani Enterprises / Adani Ports (Subject to NSE changes)
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