WAHT IS NIFTY

NIFTY 

The S&P CNX Nifty is the stock index of large companies on the Ntional Stock Exchange (NSE). IT Consists of 50 diverse scrips which represent over 20 sectors of the Indian economy

This is a flag ship index of the NSE. A weighted average of the 50 constituent scrips is used to calculate the Nifty.The Nifty stocks represent around 60 percent of the total market capitalisation and about 55 percent of the traded values of all stocks on the NSE.Like the Sensex, Nifty is reconstituted, periodically.Nifty is useful in the following ways: .

1:It helps investors and the common man to judge the mood of the stock market and the Indian economy.When the Nifty rises it is a signal that companies in Indian are performing well and the economy is in good health.

2.Individual and institutional investors can use the Nifty to track market movements. They can compare performance of a specific company with market performance.

3.Shareholders can evaluate management of their company by comparing company performance with thye market.

4.Traders and intermediaries in the stock market can judge sentiments across the market.

5.Nifty indices can be replicated by index funds to earn market returns.

6.Nifty is used as the benchmark for performance of mutual funds.

7.Nifty is Helpful in derivative trading.Investors can use Nifty for hedging their exposures in the equity market.     


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