NIFTY 50

It represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.

• It is owned and managed by NSE Indices.
• Established: It was launched on 22 April 1996.
• Coverage: It covers 13 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. It gives a weightage of 39.47% to financial services, 15.31% to Energy, 13.01% to IT, 12.38% to consumer goods and 6.11% to Automobiles.
• Calculation: It is a free float market capitalization weighted index
• Base Year: The base period for the index is 3 November 1995. The base value of the index has been set at 1000.

Significance: Both the NIFTY and SENSEX indices have helped put the Indian Capital markets on the world map. They play an important role in estimating the economic health and progress of the country.

• They have also helped in integration of Indian stock market with global markets.