What Is Nifty 50 and How is It Calculated? List of Top 50 NIFTY Companies and Basics Of Nifty Explained

When it comes to the share market, then the name of Nifty and Sensex comes first. Because Sensex and Nifty are very important parts of the share market, without these, there is no work inside the stock market and if you want to invest in the share market, then first of all you should take complete information about the stock market. Because if you invest in the share market without any information, then you will have a lot of problems, so you should take good information before going inside the stock market. And the information about the Nifty 50 is also very important. If you see the news, you must have heard that today the Nifty closed up by so many points or the stock market closed by falling so many points.

What Is Nifty
What Is Nifty

So the question will also come in your mind that actually what is this Nifty? So you must know about it and many investors have good knowledge about it too. If you do not have good information about it, then today we will share complete information about the Nifty 50 in this article. Will tell you what the Nifty is and how it works. Although about the Sensex we have told you in our previous post about it. You can take information and if you want to invest inside the stock market, then there is a lot of important information for you in this domain.

What is Nifty 50

Nifty’s Full Form is National Stock Exchange Fifty. The word Nifty is made up of National and Fifty, so it is also called Nifty 50. Our country has 2 major stock exchanges, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Nifty is the index of the National Stock Exchange (NSE), monitors shares of 50 major companies in the country by Nifty. And in it only 50 stocks of the company can be seen.

The Nifty also takes care of the rapid or slowing in the prices of the 50 stocks that are listed and also provides information about them. Nifty is India’s most prominent and important stock index. Stocks of more than 50 companies cannot be listed in Nifty. Nifty has 50 companies indexed from 12 different sectors.

History of Nifty

Nifty has been published in the stock market since 1995, as the word of Nifty shows that Nifty is made up of 2 words, National and Fifty. Hence it is called Nifty which is registered on National Stock Exchange (NSE). There is an index of 50 important company’s shares. The stock market makes a lot of dependence on Nifty. By looking at the Nifty’s move, we can find out the direction of the stock market in which direction the stock market is going.

When there is a boom in Nifty 50, then we assume that the market is also growing. And if there is a slowdown in Nifty, then let us assume that there is a slowdown in the market as well. Base price of Nifty depends only on the price of 50 stocks, yet by looking at the movement of Nifty, the movement of the entire stock market is determined because within Nifty those companies are registered which are very popular and the market is supported by them.

That is why the share market depends more on Nifty. And the index is calculated in the free-float method for market-weighted stock index and we have explained about it in our previous post.

Base year of Nifty was 1995 and the base price was 1000 in this index. And today if the price of Nifty is 8000. It means that the price of Nifty shares has increased by 800% so far, compared to 1995.

What is the work of Nifty?

Nifty’s job is to give the information of the company listed inside it and give information about the market’s move. Nifty gives all the information about the company, how is the performance of the company, their share rates are decreasing or getting higher. 

If the shares of the listed company go up or increase, then due to this, the Nifty also accelerates.

In the same way, if the price of shares of companies listed in the index starts decreasing. And when there is a decrease in the price of shares, the decline in Nifty can be seen.

What is the difference between Nifty and Sensex?

Both Nifty and Sensex are stock indices. Nifty has listed 50 companies and Sensex has 30 companies listed. Within Sensex and Nifty – Nifty is part of the National Stock Exchange while Sensex is a part of the Bombay Stock Exchange. The work of both is the same. Both are indices and both have real motive to tell the state of the stock market. 

What is the difference between Nifty and Sensex?
What is the difference between Nifty and Sensex?

Nifty was founded in 1995 and Sensex was founded in 1986. The National Stock Exchange consists of over 1600 companies, and the Bombay Stock Exchange consists of over 5000 companies.

Benefits of Nifty

Nifty has many benefits like:

  • Through Nifty we get to know about the National Stock Exchange (NSE) i.e. how it is working.
  • With Nifty, we get information about the economy of the country easily. If the market continues to boom and Nifty is going upwards, then the Economy of the country also goes upwards.
  • The performance of the NSE can be easily determined.
  • Through Nifty, you get information about the boom and downturn in the market and the profit and loss of the company.

How the Nifty works 

The job of Nifty 50 is to give information about the 50 companies listed in Nifty and the Stock Market. The Nifty Index is used to determine how the company is doing if the performance of the company listed within the Nifty is good and if the stock rate is more, then Nifty Share Price also increases rapidly. 

What Is Nifty
What Is Nifty

Similarly, if the company is losing profit, then it affects the company’s shares price and when the shares price decreases, the Nifty price index also falls.

List Of Nifty 50 Companies

  • ACC Limited (NSE: ACC)
  • Adani Ports & SEZ Limited (NSE: ADANIPORTS)
  • Ambuja Cements Ltd. (NSE: AMBUJACEM)
  • Asian Paints Ltd. (NSE: ASIANPAINT)
  • Axis Bank Ltd. (NSE: AXISBANK)
  • Bajaj Auto Ltd. (NSE: BAJAJ ‑ AUTO)
  • Bank of Baroda (NSE: BANKBARODA)
  • Bharat Heavy Electricals Limited (NSE: BHEL)
  • Bharat Petroleum Corporation (NSE: BPCL)
  • Bharti Airtel Ltd. (NSE: BHARTIARTL)
  • Bosch Ltd. (NSE: BOSCHLTD)
  • Cairn India Ltd. (NSE: CAIRN)
  • Cipla Ltd. (NSE: CIPLA)
  • Coal India Ltd.(NSE:COALINDIA)
  • Reddy’s Laboratories Ltd. (NSE: DRREDDY)
  • GAIL (India) Ltd. (NSE: GAIL)
  • Grasim Industries Ltd. (NSE: GRASIM)
  • HCL Technologies Ltd. (NSE: HCLTECH)
  • HDFC Bank Ltd. (NSE: HDFCBANK)
  • Hero MotoCorp Ltd. (NSE: HEROMOTOCO)
  • Hindalco Industries Ltd. (NSE: HINDALCO)
  • Hindustan Unilever Ltd. (NSE: HINDUNILVR)
  • Housing Development Finance Corporation Ltd. (NSE: HDFC)
  • ITC Limited (NSE: ITC)
  • ICICI Bank Ltd. (NSE: ICICIBANK)
  • Idea Cellular Ltd. (NSE: IDEA)
  • IndusInd Bank Ltd. (NSE: INDUSINDBK)
  • Infosys Ltd. (NSE: INFY)
  • Kotak Mahindra Bank Ltd. (NSE: KOTAK BANK)
  • Larsen & Toubro Ltd. (NSE: LT)
  • Lupin Limited (NSE: LUPIN)
  • Mahindra & Mahindra Ltd. (NSE: M&M)
  • Maruti Suzuki India Ltd. (NSE: MARUTI)
  • NTPC Limited (NSE: NTPC)
  • Oil & Natural Gas Corporation Ltd. (NSE: ONGC)
  • Power Grid Corporation of India Ltd. (NSE: POWERGRID)
  • Punjab National Bank (NSE: PNB)
  • Reliance Industries Ltd. (NSE: RELIANCE)

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