What Is the Nifty 50?

National Stock Exchange Fifty Nifty is the full form of National Stock Exchange Fifty which has 50 major stocks listed on the National Stock Exchange. Here we discussed the information about nifty, what is the method of counting it, how it decreases, how many shares are included in it, and also discuss what is the Free Float Market Weighted Stock Market Index.

What is nifty? As you know Nifty is a full form of National Stock Exchange Fifty, it is made up mainly two words, NATIONAL and FIFTY, it appears that the Nifty word is based on the top 50 shares listed on the National Stock Exchange. The nifty moves make you aware of the movement of the market. If the Nifty is fast, then you can assume that the market is also fast. If the Nifty is declining, then you can assume that the market is also declining. Although the Nifty is counted only on the basis of the price of fifty shares, the direction of the Nifty also indicates the direction of the market.

Index of NSE BSE and NSE are the main stock markets in India where shares are traded. Sensex and Nifty are the major indices for them. As you know Sensex is a short form of sensitivity index. Which is also know as the Bombay Stock Exchange, it is referred to as the BSE 30 or BSE Sensex, which is based on the top 30 stocks in it and the Nifty is based on 50 shares, then we can say that the Nifty represents the movement of the market in a broader way. This fifty shares have been taken from 22 different industries.

Free float market weighted Like the Sensex, the free float market on the Nifty National Stock Exchange is the free-float market-weighted stock market index. The market capitalization of any company that is part of Market Capitalization which can be available in the market for sale, it will be free float market capitalization and on the basis of which Nifty is also calculated. This index of fifty stocks is called Nifty.