Nifty

Introduction:

A new investor will be confused when they heard about the word NIFTY while investing stock market. Hence I am posting this topic for helping new investor in Indian share market.

 Nifty is an Index of 50 shares introduced by National Stock Exchange of India. And it contains 50 major company's shares trading in stock exchange. The name NIFTY itself contains 2 words `National` and `FIFTY` they word 50 is used because of 50 shares in multiple sectors.

So nifty will be calculated by moving these 50 stocks. The Nifty is an indicator of all the major companies of the NSE.  Based up on the movement of these 50 stocks Sebi has rights to add or remove the stocks from NIFTY. It will depend up on the stock performance. In Indian stock market Nifty is also available for Future and option trading.

List of the 50 stocks in NIFTY :

http://www.nseindia.com/live_market/dynaContent/live_watch/pre_open_market/pre_open_market.htm

In my next post I will explain Banknifty, Future and Option trading Strategy. Feel free to leave comment if you need any further clarification.