2.14What is Nifty 50?
1What is it?
The Nifty 50 is NSE’s main index of 50 large, actively traded companies from different sectors.
2Why does it exist?
It represents the Indian large-company market. Fund managers compare their performance against it, and index funds copy it.
3Stock market example
Members include Reliance, HDFC Bank, ICICI Bank, Infosys, TCS, Bharti Airtel and ITC. The list is reviewed twice a year by NSE Indices; weak companies can be replaced. The base value was 1,000 in November 1995.
4Quick revision
- Nifty 50 = 50 large NSE companies.
- Reviewed twice a year.
- The benchmark for Indian large caps.
5Knowledge check
Q1. How many companies are in the Nifty 50?Show answer
50.
Q2. Who maintains the Nifty 50?Show answer
NSE Indices Limited (part of NSE).
Q3. Name three Nifty 50 companies.Show answer
For example Reliance, HDFC Bank, Infosys, TCS, ICICI Bank, ITC, Bharti Airtel.