Every individual who is a trader or investor in the stock markets must know what is Nifty and What is Sensex. India has two main exchanges i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). In fact, Nifty is an index that is part of NSE and Sensex is a short form of sensitivity index that forms part of BSE. Let us understand the meaning of nifty in detail.
What is Nifty?
The term Nifty originated from two words i.e. National and Fifty. Nifty is an index that is part of NSE. Nifty consists of 50 heavyweight stocks from 12 different sectors. Furthermore, the valuation of nifty is determined based on the performance of these 50 stocks.
Let us now learn about the term Nifty 50 and its components
What is Nifty 50?
Nifty 50 as the name suggests represents the top 50 stock of the NSE. India Index Services and Products Ltd. (IISL) does the management of the Nifty 50 index. In addition, the stocks from 12 different sectors of the economy are used for bench marking fund portfolio, index funds and index-based derivatives. Furthermore, the Nifty 50 stocks comprise 43.8% traded value of all the stock on NSE for the last six months ending March 2017.
Let us have a look at 50 stocks that are part of Nifty 50
|Adani Ports and Special Economic Zone Ltd.||SERVICES|
|Ambuja Cements Ltd.||CEMENT & CEMENT PRODUCTS|
|Asian Paints Ltd.||CONSUMER GOODS|
|Aurobindo Pharma Ltd.||PHARMA|
|Axis Bank Ltd.||FINANCIAL SERVICES|
|Bajaj Auto Ltd.||AUTOMOBILE|
|Bajaj Finance Ltd.||FINANCIAL SERVICES|
|Bharat Petroleum Corporation Ltd.||ENERGY|
|Bharti Airtel Ltd.||TELECOM|
|Bharti Infratel Ltd.||TELECOM|
|Coal India Ltd.||METALS|
|Dr. Reddy’s Laboratories Ltd.||PHARMA|
|Eicher Motors Ltd.||AUTOMOBILE|
|GAIL (India) Ltd.||ENERGY|
|HCL Technologies Ltd.||IT|
|HDFC Bank Ltd.||FINANCIAL SERVICES|
|Hero MotoCorp Ltd.||AUTOMOBILE|
|Hindalco Industries Ltd.||METALS|
|Hindustan Petroleum Corporation Ltd.||ENERGY|
|Hindustan Unilever Ltd.||CONSUMER GOODS|
|Housing Development Finance Corporation Ltd.||FINANCIAL SERVICES|
|I T C Ltd.||CONSUMER GOODS|
|ICICI Bank Ltd.||FINANCIAL SERVICES|
|Indiabulls Housing Finance Ltd.||FINANCIAL SERVICES|
|Indian Oil Corporation Ltd.||ENERGY|
|IndusInd Bank Ltd.||FINANCIAL SERVICES|
|Kotak Mahindra Bank Ltd.||FINANCIAL SERVICES|
|Larsen & Toubro Ltd.||CONSTRUCTION|
|Mahindra & Mahindra Ltd.||AUTOMOBILE|
|Maruti Suzuki India Ltd.||AUTOMOBILE|
|Oil & Natural Gas Corporation Ltd.||ENERGY|
|Power Grid Corporation of India Ltd.||ENERGY|
|Reliance Industries Ltd.||ENERGY|
|State Bank of India||FINANCIAL SERVICES|
|Sun Pharmaceutical Industries Ltd.||PHARMA|
|Tata Consultancy Services Ltd.||IT|
|Tata Motors Ltd.||AUTOMOBILE|
|Tata Steel Ltd.||METALS|
|Tech Mahindra Ltd.||IT|
|UPL Ltd.||FERTILISERS & PESTICIDES|
|UltraTech Cement Ltd.||CEMENT & CEMENT PRODUCTS|
|Yes Bank Ltd.||FINANCIAL SERVICES|
|Zee Entertainment Enterprises Ltd.||MEDIA & ENTERTAINMENT|
Let us now have a look at sectoral indices that form part of Nifty 50
- Nifty Auto Index
Nifty Auto Index comprises of 15 stocks. Furthermore, these 15 stocks of companies are in the business of manufacturing cars & motorcycles, heavy vehicles, auto ancillaries, tyres, etc. This index reflects the performance of automobile sector.
- Nifty Bank
Nifty Bank comprises of India’s large capitalized banking stocks. This index has 12 stock from the banking sector. It captures the performance of the banking sector of the country.
- Nifty Financial Service Index
Nifty Financial Service Index reflects the performance of banks, financial institutions including housing, and other companies that provide financial services. This index comprises of 15 companies that are part of NSE.
- Nifty FMCG Index
This index comprises of fast moving consumer goods companies. Furthermore, this index has 15 stocks that are listed on NSE. These companies produce goods that are of mass consumption and non-durable.
- Nifty IT Index
Nifty IT index reflects the performance of Indian IT sector. The index includes companies that have more than 50% of their turnover from IT related activities like IT Infrastructure, Telecommunication Services and Networking Infrastructure, IT Education and Software Training,Software Development, Hardware Manufacturer’s, Vending, Support and Maintenance. The index currently has 10 companies listed on the NSE.
- Nifty Media
This index captures the performance of media and entertainment sector of the economy.
- Nifty Metal Index
Nifty metal index comprises of 15 stocks listed on the NSE. In addition, this index reflects the performance of the metal index.
- Nifty Pharma Index
This index captures the performance of the pharma sector of the country.
- Nifty Private Bank Index
This index comprises of 10 private banking stocks listed on NSE. Furthermore, it measures the performance of private banks of the country.
- Nifty PSU Bank Index
This index reflects the growth and performance of public sector banks of the country.
- Nifty Reality Index
Nifty reality index comprises of growth and performance of the real estate and infrastructure companies of the country.
- Nifty 500 Industry Indices Index
IISL maintains different industry groups under Nifty 500 Industry Indices Index.
Let us move ahead and learn what is Sensex?
What is Sensex?
Sensex was introduced by Bombay Stock Exchange i.e. BSE on 1st January 1986. It comprises of 30 stocks that are also known by name of BSE 30. Sensex measures the performance and sentiments of different sectors of the economy.
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