The Standard & Poor's CRISIL NSE Index 50
or S&P CNX Nifty
nicknamed Nifty 50
or simply Nifty
(NSE: ^NSEI), is the leading index
for large companies on the National Stock Exchange of India
. The Nifty is a well diversified 50 stock index accounting for 23 sectors of the economy
. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds
. Nifty is owned and managed by India Index Services and Products Ltd
. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL has a marketing and licensing agreement with Standard & Poor's.
Nifty has shaped up as the largest single financial product in India, with an ecosystem comprising: exchange traded funds (onshore and offshore), exchange-traded futures and options (at NSE in India and at SGX and CME abroad), other index funds and OTC derivatives (mostly offshore).
The S&P CNX Nifty covers 23 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio.The S&P CNX Nifty stocks represent about 60% of the total market capitalization of the National Stock Exchange (NSE).The index is a free float market capitalisation weighted index. From inception, the index used full market capitalisation as weight assigned to different constituents. From June 26, 2009, the index is computed based on free float methodology. As of November 2010, top... Read More