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Updated: Apr 22, 2023

Nifty is a well-liked equity index in India, similar to the Sensex. There are 50 stocks in the Nifty. NSE Indices Limited is the owner and manager of the Nifty 50. As of March 29, 2019, the Nifty 50 Index, as an index, represented roughly 66.8% of the free float market capitalization of the stocks listed on NSE. The impact cost of the Nifty, a very efficient index, is approximately 0.02% for a portfolio size of Rs 50 lakh. The Nifty 50 was introduced on April 1, 1996, and is one of the NSE's several stock indices. Investors and market intermediaries alike can trade and invest in it.

What sectors are covered in Nifty ?

When it comes to sector representation, the Nifty is made up of stocks from important Indian economic sectors. Financial services make up 40.39% of the total weight, followed by Energy 14.38%, IT 13.7%, Consumer goods 10.66%, Automobiles 5.7%, Construction 3.99%, Metals 3.6%, Pharmaceuticals 2.15%, Telecom 1.84%, Cement & cement products 1.74%, Fertilizers & pesticides 0.7%, Services 0.6%, and Media & entertainment 0.4%.

What are Nifty based derivatives ?

The National Stock Exchange of India Limited (NSE) began trading in derivatives on June 12, 2000, with the introduction of index futures. The NSE's futures and options market is very reliant on the Nifty. Trading in the Nifty 50 Index, Nifty IT Index, Nifty Bank Index, Nifty Midcap 50 Index, etc., as well as individual equities are both available in the Futures and Options (FNO) segment. There are also long-term Nifty 50 options available.

How is Nifty calculated ?

The Nifty Bank Index is computed using the free float market capitalization method, with a base date of January 1, 2000 and a base value of 1000. The index level reflects the entire free float market value of all stocks in the index in relation to a certain base market capitalization value.

How does Nifty work ?

NIFTY 50's calculation began using the free float methodology on June 26, 2009. The index is determined each day in real-time. Nifty is rebalanced every two years.

Bank Nifty

Bank Nifty (NSE) is an index that includes 12 stocks from the banking industry that are the most liquid and well-capitalized. Stocks in the Bank Nifty index are owned by both the public and private sectors. It was first introduced in 2003. It represents the capital market performance of Indian bank stocks and serves as a benchmark for investors.

What is Bank Nifty technical analysis ?

An important aspect of investing is "technical analysis." It helps in the discovery of patterns, the analysis of trends, and the assessment of the strength and persistence of the trends. The Bank Nifty news alone cannot be relied upon (which is available to everyone). You must be able to read between the lines and see through things, and Bank Nifty Technical Analysis will assist you in this endeavour. Advanced technical analysis tools are included into a solid trading platform, like the one offered by TradeSmart, to help you fine-tune your investment choices. Both fundamental and technical factors can be used to examine the movement of the Bank Nifty Index. Fundamental determinants include bond yield movement, quarterly results from the top six members in the Bank Nifty Index, and so on.


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