NSE Symbol: NIFTY | BSE Code: 521335
Nifty 50 share price fluctuates at every moment and thus it is very important for all potential investors to keenly study the performance of the company’s shares before investing in it. Nifty 50 shares can be purchased from NSE (National Stock Exchange) as well as from BSE (Bombay Stock Exchange). All the details regarding the Nifty 50 stock price, PE ratio, earlier closings and other metrics that can help in judging the stocks of Nifty 50 can be found on the websites of BSE as 540115 and on NSE as LTTS. The Nifty share price depends on the fifty stocks listed in the index which belong to various sectors of the Indian economy.
NIFTY 50: History and Trends
NIFTY 50 index is the benchmark for the broad-based stock market index for the Indian equity market.NIFTY can be expanded as National Stock Exchange Fifty. It portrays the weighted average of 50 Indian company stocks in 12 sectors and it is one of the two major stock indices that are used in India, the other one being the BSE Sensex.
India Index Services and Products (IISL) manages Nifty 50. IISL is a wholly owned subsidiary of NSE Strategic Investment Corporation Limited. It had the marketing and licensing agreement with Standard & Poor's for co-branding equity indices till 2013. Nifty 50 was launched on 1st April 1996, and it is one of the many stock indices by Nifty.
NIFTY 50 Index has shaped up as the largest single financial product in India, with an ecosystem containing: exchange-traded funds, exchange-traded futures and options available at NSE in India and at CME and SGX abroad, other index funds and OTC derivatives. NIFTY 50 is the most actively traded contract globally. Surveys like WFE, IOMA and FIA validate NSE’s leadership position.
NIFTY 50 covers 12 sectors of the Indian economy and it offers the investment managers susceptibility of the Indian market in a single portfolio.
In 2008-12, NIFTY 50 Index share of NSE market capitalisation fell from 65% to 29%. This happened due to the increase of sectoral indices like NIFTY Bank, NIFTY SERV SECTOR, NIFTY IT, NIFTY Pharma, NIFTY Next 50, etc.
NIFTY 50 Index provides 29.70% weightage to financial services, 0.73% weightage to industrial manufacturing and agricultural sector is given zero weightage.
The NIFTY 50 index is a free-floating market capitalisation weighted index. initially, the index was calculated with the methodology of full market capitalisation. However, from June 2009, the computation methodology was changed to free-float. Base period for CNX Nifty index is November 3, 1995, which embarks the fulfillment of one year of operations of NSE in the Equity Market Segment. The base value of the index is set to be 1000 and the base capital is set as Rs 2.06 trillion.
The pie-chart below shows the sectorwise weightage of NIFTY 50 stocks: