How NIFTY is Calculated?

What is NIFTY?

NIFTY can be described as a market index introduced by the National Stock Exchange (NSE) to represent the performance of the top 50 largest and most liquid stocks listed on the NSE. It is a term that is used in the Indian share market introduced by the National Stock Exchange (NSE) on 21st April 1996 in India. NIFTY is one of the most widely followed equity indices after BANK NIFTY and SENSEX in India and serves as a key indicator of the Indian stock market’s overall health and performance....

How NIFTY is Calculated?

NIFTY index is calculated by using some unique methods on a daily basis in the share market, the methodology is known as “free-float market capitalisation-weighted method.” With the help of this method, some professionals manage the NIFTY index on a daily basis and maintain the index according to the top 50 companies’ growth of loss....

Usage of NIFTY in the Indian Stock Market

Basically NIFTY is the backbone of the NSE and the Indian Stock Market. With the help of NIFTY, like index, trades are possible in the market. Some more uses of NIFTY are:...

Difference between NIFTY and SENSEX

Basically NIFTY and SENSEX both are major indexes that are used in the Indian share market to see the graph of companies and market. So basically, they are the two of the most prominent stock market indices in India, and they represent different segments of the Indian stock market....

Advantages of NIFTY

As we see, it is the index on which the almost complete market depends, so let’s see the major advantages of using the NIFTY index and trading in NIFTY:...

Disadvantages of NIFTY

1. Highly volatile: Sometimes, it becomes quite risky for investors to invest in the NIFTY index because of its nature of high volatility....