What is Nifty and Sensex? Stock Market Basics

What is Nifty and Sensex

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

Company Name Industry
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
Bosch Ltd. AUTOMOBILE
Cipla Ltd. PHARMA
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
Infosys Ltd. IT
Kotak Mahindra Bank Ltd. FINANCIAL SERVICES
Larsen & Toubro Ltd. CONSTRUCTION
Lupin Ltd. PHARMA
Mahindra & Mahindra Ltd. AUTOMOBILE
Maruti Suzuki India Ltd. AUTOMOBILE
NTPC Ltd. ENERGY
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
Vedanta Ltd. METALS
Wipro Ltd. IT
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

Sectoral Indices

  • 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.

If you are looking for What is Nifty, What is Sensex or Nifty 50 Information then your search ends here!

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