What is NIFTY
S&P CNX NIFTY
In short NIFTY 50 or just NIFTY. It is an index (a list) of 50 most active stocks on the National stock exchange. These stocks represent 22 sectors of Indian economy and accounts for 67% of market capitalization of total company listed on NSE.
There are more than 1800 companies listed on NSE and their shares are being traded. Shares are divided in 3 groups Large CAP, Mid CAP and Small Cap based on their market capitalization respectively more than 1000 Cr., Between 100 to 1000 Cr. and below 10o cr. Best performing companies are chosen and added into the NIFTY Index.
What happens if NIFTY goes up or down
Normally, when price of all major stocks increases NIFTY goes up; lets say from 6000 to 6100. This mean stock market was bullish today.
Stock Selection Criteria of NIFTY
Stocks are selected based of following criteria:
- Listing History
- Trading Frequency
- Rank based on the Market Cap (Should be Among top 100)
- Market Capitalization weight
- Industry / sector they belong
- Historical Record
List of NIFTY 50 companies
Name | Sector |
ACC | Housing Related |
States Bank of India | Banking & Finance |
BHEL | Capital Goods |
Larsen & Toubro | Capital Goods & Construction. |
Grasim Industries | Diversified |
HDFC | Finance |
HDFC Bank | Finance |
ICICI Bank | Finance |
Hindustan Lever Limited | FMCG |
ITC Limited | FMCG |
Cipla | Healthcare |
Dr. Reddy’s Laboratories** | Healthcare |
Ranbaxy Laboratories | Healthcare |
Ambuja Cements Ltd | Housing Related |
Infosys | Information Technology |
Satyam Computer Services | Information Technology |
Tata Consultancy Services | Information Technology |
Wipro | Information Technology |
Hindalco Industries | Metal, Metal Products & Mining |
Tata Steel | Metal, Metal Products & Mining |
ONGC | Oil & Gas |
Reliance Industries | Oil & Gas |
NTPC | Power |
Reliance Energy | Power |
Bharti Airtel | Telecom |
Reliance Communications | Telecom |
Bajaj Auto | Transport Equipments |
Mahindra & Mahindra Limited | Transport Equipments |
Maruti Udyog | Transport Equipments |
Tata Motors | Transport Equipments |
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