What is NIFTY ?
The National Exchange of India (NSE) tracks the benchmark performance of the firms listed on the NSE, including NIFTY 50, NIFTY Next 50, and other important indexes, using the Nifty stock market index.
Over 350 indexes operate under the Nifty brand, and their purpose is to interpret stock market movements by utilizing the weighted average and market capitalization of businesses that reflect various economic sectors.
The most popular index for monitoring the performance of the stock market is Nifty 50. In general, the free-float market capitalization approach is used to create the Nifty indices, which is useful for benchmarking fund portfolios, index fund launches, exchange-traded funds (ETFs), and other trading possibilities.
Types Of NIFTY Indices :-
Nifty Broad Market Indices -
Large, mid, and small liquid stocks of companies listed on the NSE make up the Nifty broad market indexes. They provide as a standard by which to compare the performance of individual stocks or entire portfolios using the weighted average, which is the total projected return from the portfolio.
The average daily turnover and average daily complete market capitalization of a company are used to rank it according to its current stock price and total outstanding shares. Under the Nifty moniker, there are currently 17 broad market indices. Twice a year, the NIFTY broad market indices are reassessed using six-month data that ends on January 31 and July 31. These are a few examples of wide market indices:
| NIFTY 50 | The top 50 sizable, liquid corporations are indicative of the entire equity market. |
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NIFTY 200 |
Represents every company in the NIFTY Full Midcap 100 and NIFTY 100 indexes. |
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NIFTY 500 |
Represents 500 businesses according to their entire market valuation. |
Nifty Sectoral Indices
Sectoral indices function as a standard by which to evaluate the performance of stocks in particular industries or sectors. Additionally, companies that provide similar goods or services (like banks, automobiles, etc.) are compiled into sectoral indices. Under the Nifty name, there are currently 19 sectors market indices. Among which, the following are a few sectors market indices:
| NIFTY IT | Tracks ten equities that are representative of the financial market's information and technology sector. |
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NIFTY Auto |
Monitors the performance of the top 15 corporations in the financial market's automotive sector. |
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NIFTY Bank |
Monitors the performance of twelve significant, liquid Indian banking equities that are listed on the NSE. |