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Did You Know These Facts About Nifty?

2 Dec 2019

If you are reading this post, surely the term Nifty is not unknown to you. But do you know its full form? Or as to who owns the Nifty? This post will answer all your queries regarding Nifty which is often termed as the parameter for assessing the position of the Indian economy. So, read on to know more about this value which holds in it the key to the country’s economy.

What is Nifty?

Nifty is the short form of National Stock Exchange 50- an average of the top 50 companies which are listed on the National Stock Exchange. This index is important because it gives a glimpse into how the best performing companies of India are performing. All the stocks in Nifty are or Blue-Chip companies, which means that these companies have a solid management, and years of stable financial track record to back them and ensure good returns.

Nifty’s Ownership and Its History

Nifty is owned and managed by the India Index Services and Products (IISL) which is a wholly owned subsidiary of the National Stock Exchange. Nifty was launched on 1st April 1996 and is the world’s most traded index. Initially the index was calculated on the basis of full market capitalization methodology. Later, this was changed to free float market capitalization method on 26th June 2019.

The base period of Nifty is taken to be 3rd November 1996, and its base value is set at 1000. The base Capital of Nifty was Rs. 2.06 trillion.

The Recent Shuffling Of Nifty Index

Nifty is divided into a majorly 13 sectors and each sector has a different distribution. The sectors are:

1. Infrastructure

2. Consumer Goods

3. Banking

4. Automobile

5. Financial services

6. Telecommunication

7. Energy

8. Pharmaceuticals

9. Cement

10. IT

11. Metals

12. Construction

13. Media and Entertainment

In February 2019, Britannia India entered into Nifty index by replacing Hindustan Petroleum Corporation Limited. Later in the year, on 27th September 2019, Nestle India entered the Nifty 50 by replacing Indiabulls Housing Finance Limited.

The NIFTY 50 Index represents about 66.8% of the free float market capitalization of the stocks listed on NSE as on 29th March 29 2019.

Nifty’s Highs

At the time of writing this Blog, the Nifty’s all-time intraday high had been marked at 12,132.45 points on 26th November 2019. Whereas the all time closing high had been 12, 088.55 on 3rd June, 2019.

Some of the biggest single day gains for the Index in 2019 have been on 20th September, when the Corporate tax cut was announced. Nifty jumped 655.45 points in a single day. This was also followed on the next trading day after the announcement on 23rd September when Nifty jumped 420.65 points as a follow up of the tax cut announcement.

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