Nifty Next 50: History, Share/Stock Price
Nifty 50 is a benchmark Indian stock market index that represents the weighted average of the 50 largest Indian companies listed on the National Stock Exchange.
Nifty 50- Introduction: Nifty 50 is owned and managed by NSE Index (earlier known as India Index Services and Products Limited), a wholly owned subsidiary of NSE Strategic Investment Corporation Limited. The NSE Index had a marketing and licensing agreement with Standard & Poor’s for co-branding the equity index until 2013.
The Nifty 50 Index was launched on 22 April 1996 and is one of the many stock indices of the Nifty.
The Nifty 50 index has become the largest single financial product in India, with an ecosystem consisting of exchange-traded funds (onshore and offshore), exchange-traded options on the NSE, and futures and options abroad in the SGX. WFE, IOM, and FIA surveys support NSE’s leadership position.
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Nifty 50- History
The Nifty 50 Index covers 13 sectors of the Indian economy (as of 30 April 2021) and provides investment managers exposure to the Indian market in a single portfolio.
Between 2008 and 2012, the share of the Nifty 50 index in the market capitalization of the NSE fell from 65% to 29% with the rise of regional indices such as Nifty Bank, Nifty IT, Nifty Pharma, Nifty Service Sector, Nifty Next 50, etc. because of.
The Nifty 50 index gives a weightage of 39.47% to Financial Services, 15.31% to Energy, 13.01% to IT, 12.38% to Consumer Goods, 6.11% to Automobiles, and 0% to Agriculture Sector.
Nifty 50 Index is a free float market capitalization-weighted index. Initially, the index was calculated on an absolute market capitalization method. On 26 June 2009, the calculation was changed to a free-float method.
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The base period of the Nifty 50 index is 3 November 1995, which marked the completion of one year of operation of the National Stock Exchange equity market segment.
The base price of the index has been fixed at ₹ 1000 and the base capital is ₹ 2.06 trillion.
Nifty Next 50
Nifty Next 50, also known as Nifty Junior, is an index of 50 companies whose free float market capitalization comes after the companies in the Nifty 50. Nifty Next 50 constituents are thus likely candidates to be included in Nifty 50 in the future.
Derivatives
Trading in Call and Put options on Nifty 50 is offered by NSE. The exchange offers weekly as well as monthly expirations.