Nifty is a stock index which has been launched by the National Stock Exchangeof India and is a list of the 50 most liquid stocks.
You are trading all the 50 stocks listed in Nifty when you are trading in Nifty.
There are a number of trading strategies available in books and videos.
The 50 most liquid and actively traded stocks in the Indian share market come under the Nifty index.
Besides stock trading on individual stocks, trading the Nifty and take part in all the stocks that are listed in the index can be done.
On the other hand, it cannot be done on as a single stock trading but needs to trade in futures when trading in Nifty.
The nifty share market value is calculated from the share price of all the 50 stocks. The base year to calculate the value of the index is 1995 and the base value has been set to 100.
The 50 stocks that shape a part of Nifty are selected from 24 sectors and therefore signify the entire market.
How are stocks selected in the Nifty50 list?
There are a few standards on which a specific stock gets an entry into the Nifty50 list.
List of Nifty 50 Companies
- 1.Asian Paints
- 2.Titan Company
- 5.Bajaj Auto
- 6.ICICI Bank
- 7.Axis Bank
- 8.Tech Mahindra
- Dr. Reddys Laborat
- 11.Bajaj Finance
- 12.Hind. Unilever
- 14.HCL Tech
- 15.Maruti Suzuki
- 16.Sun Pharma
- 19.Kotak Bank
- 20.Bharti Infratel
- 22.Bajaj Finserv
- 23.YES Bank
- 24.Zee Ent.
- 26.Tata Motors
- 27.UltraTech Cem.
- 32.Tata Steel
- 33.Eicher Motors
- 34.Coal India Ltd
- 35.Indian Oil Corp
- 36.Larsen & Toubro
- 38.HDFC Bank
- 39.Hero MotoCorp
- 41.Grasim Inds.
- 42.Ibull HousingFin
- 43.Adani Ports SEZ
- 44.Hindalco Inds.
- 45.Bharti Airtel
- 49.Zee Ent.
What are Liquidity stocks?
The most liquid stocks traded on NSE are only chosen to be in the Nifty50 list.
Liquid stocks are extremely traded and they fit in to blue-chip companies.
The spread of these stocks are very low and it is a simple procedure for your orders to get filled when you trade these stocks.
What are Floating stocks?
The companies listed under Nifty50 should have a minimum 10% of their total shares in the market.
These are known as floating stocks and the same can be traded on the secondary market.
In general, Stocks which are not apprehended by associated entities and promoters are termed as floating stocks.
Those companies that come out with an IPO can also be added in the Nifty50 list if it comes through all the essential criteria’s of market capitalisation and floating stocks.
Stocks can get replacement from the Nifty50 index. When there are modifications in the corporate actions or if there is a delisting, the stock which has the major market capitalization and gets through the criteria of liquidly and floating shares will be considered. When there is an enhanced stock in NSE as evaluated to the one that previously forms a part of the list, subsequently the stock may be replaced.
The Nifty index is designed as a weighted average by means of the market capitalization of the stocks that outlines a part of the index.
The technique takes care of corporate actions and stock splits and considers them in calculation.