Hello, friends Today we will talk about Nifty. What is Nifty, what is the function of Nifty in the stock market, how to calculate Nifty, what are the benefits of Nifty, which companies are in the list of Nifty 50 now, etc.
First of all, we will talk about what is Nifty. Because in it lies the secret of all the information.
What is Nifty?
Whenever you read a newspaper, there is an economic activity page in the newspaper, in which the economic news of the country is printed.
On this page, something is written about Nifty in such a way that today Nifty has broken 76 points and has climbed 103 points, in the same way, it is written in the lower part of the news channel. Let us know in detail.
First of all, we know the full name of Nifty, Nifty - National stock exchange, in short, NSE, in which the top 50 companies from 12 different regions of the country are in the list, which is called Nifty.
Although there are more than 2000 companies listed in Nifty, Nifty keeps an eye on the top 50 companies because the fluctuations in Nifty are assessed only by the rise and fall of the shares of these 50 companies.
Read this - what is Sensex
This is because the market cap of these top 50 companies is more than half of all the other companies.
What is the function of Nifty in the share market?
Nifty is India's first digital index which means fully computerized based completely paperless, earlier shares were bought and sold through paper. The job of Nifty is to keep an eye on the business of top 50 companies to see how the business of these companies is doing.
The company is making a profit or loss, if the company is making a profit, then the rate at which the company earns profit increases the rate of their shares, due to the increase in the rate of the share, the points in Nifty increase.
In such a situation, we say that the company is doing good work in the country, its shares should be bought.
If there is a loss of the company, then the rate of the share of that company decreases, due to which the points of Nifty fall down, in such a situation, we say that the company is not doing well, its shares should not be bought.
How is Nifty calculated?
First of all, let us know who selects the top 50 companies.
These 50 companies are selected by the government, big economists, big investors, and stock market committees.
Nifty is calculated similarly to the Sensex, with the base year being 1995 and the base number as 1000.
It is important to know about the market cap in relation to the calculation of Nifty.
Market cap refers to the total value of the company which is the company's share price multiplied by the total number of shares of the company.
For example, if the price of one share of a company ABC is Rs 50, the total shares of that company is 1000, then the market cap will be 50 X 1000 = 50000
What is the difference between Nifty and Sensex?
The function of Nifty is to keep an eye on the top 50 companies and the task of Sensex is to keep an eye on the top 30 companies.
The market cap of Nifty is high, hence Nifty is considered more reliable.
Foreign investors and domestic investors also keep a close eye on the market. If the market goes up, then the foreign investors and domestic investors buy the shares of the company whose stock goes up.
If a common public is able to buy the same share, then they also get good earnings.
Advantages of Nifty
Through Nifty, market information is easily available that when the shares should be bought and when they should be sold.
If Nifty is moving upwards, then it shows that the company is growing and there is a possibility of increasing employment.
The economy of the country also strengthens because of the Nifty acts like an indicator in the economy of any country.
nifty 50 companies list
Companies Name Industry
1. SBI LIFE INSURANCE INSURANCE
2. SHREE CEMENT CEMENT
3. COAL INDIA LTD MINING
4. INDIAN OIL ENERGY- OIL&GAS
5. HERO MOTOCORP AUTOMOBILE
6. BHARAT PETROLEUM CORP LTD ENERGY- OIL&GAS
7. EICHER MOTORS LTD AUTOMOBILE
8. CIPLA LTD PHARMACEUTICALS
9. NTPC LTD ENERGY - POWER
10. GRASIM INDUSTRIES LTD CEMENT
11. HDFC LIFE INSURANCE INSURANCE
12. TATA MOTORS AUTOMOBILE
13. BRITANNIA INDUSTRIES LTD CONSUMER GOODS
14. OIL&NATURAL GAS ENERGY - OIL&GAS
15. BAJAJ FINANCE LTD FINANCIAL SERVICE
16. BHARTI AIRTEL LTD TELECOMMUNICATION
17. ASIAN PAINTS LTD CONSUMER GOODS
18 HCL TECHNOLOGIES LTD INFORMATION TECHNOLOGY
19. MARUTI SUZUKI INDIA LTD AUTOMOBILE
20. TATA STEEL LTD METALS
21. WIPRO LTD INFORMATION TECHNOLOGY
22. ULTRA TECH CEMENT LTD CEMENT
23. SUN PHARMA LTD PHARMA
24. POWER GRID LTD ENERGY - POWER
25. DIVI'S LAB LTD PHARMA
26. INDUSLND BANK LTD BANKING
27. NESTLE INDIA LTD CONSUMER GOODS
28. JSW STEEL LTD METALS
29. DR. REDDY LAB LTD PHARMA
30. TECH MAHINDRA LTD INFORMATION TECHNOLOGY
31. ADANI PORT INFRASTRUCTURE
32. TITAN COMPANY LTD CONSUMER GOODS
33. HCL TECHNOLOGIES LTD INFORMATION TECHNOLOGY
34. BAJAJ FINSERV FINANCIAL SERVICES
35. STATE BANK OF INDIA BANKING
36. ITC LTD CONSUMER GOODS
37. AXIS BANK LTD BANKING
38. LARSEN & TOUBRO LTD CONSTRUCTION
39. HINDUSTAN UNILEVER LTD CONSUMER GOODS
40. KOTAK MAHINDRA BANK LTD BANKING
41. TATA CONSULTANCY SERVICES LTD IT
42. ICICI BANK LTD FINANCIAL SERVICES
43. HDFC BANK LTD FINANCIAL SERVICES
44. INFOSYS LTD IT
45. RELIANCE INDUSTRIES LTD ENERGY - OIL&GAS
46. MAHINDRA LTD AUTOMOBILE
47. HDFC BANK BANKING
48. HINDALCO INDUSTRIES LTD METALS
49. TATA CONSUMER PRODUCTS LTD CONSUMER GOODS
50. UPL LTD CHEMICALS
I hope you have understood Nifty from this post. If you have any kind of question or suggestion, then do tell by comment.
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