How Does The Nifty Operate And What All Does It Signify?

By Author: Vamsi Krishna
Total Articles: 27
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If you’ve ever visited a finance website to check out online share prices and see what’s happening on the Indian share market live, you must have noticed that there are always two sets of figures given – the Sensex and the Nifty. If you want to get an idea of the state of the Indian share market today, you only have to check these two indices. Investor decisions on what shares to buy today will depend on them.

The Nifty, also known as CNX Nifty or Nifty 50, is an index of shares that ate listed on the National Stock Exchange (NSE). It is a good indicator of the Indian share market today.

The Nifty covers 22 sectors of the Indian economy and represents around 67 per cent of the free float market capitalisation of the stocks listed on the NSE. The shares that make up the Nifty include some of the biggest names in the Indian corporate world, including ACC, Ambuja Cements, Axis Bank, Bharat Heavy Electricals, Grasim Industries, ICICI Bank, HDFC Bank, ONGC, State Bank of India, Tata Consultancy Services, Tata Steel etc.

Whenever you have checked out the Indian share market live, ...
... you must have noticed that both the Sensex and the Nifty move in tandem. Both are reliable indicators of the state of the Indian share market today, and you can use either to decide on the shares to buy today. Generally, the professionals prefer the Nifty because of its broader base of 50 stocks unlike the Sensex’s 30. But Sensex is more popular among the general public, simply because it’s been there for a much longer time.

Another thing you may have noticed while checking out online share prices is that there are a lot of other indices around to help make investment decisions. There’s the CNX 100 and the 500, which take larger samples of stocks to give a better idea about the share market. And there are sector-specific indices like CNX Auto, Commodities, Energy, Finance, FMCG, Infrastructure, IT, Media and so on that help you hone in the sectors you’re interested in the most.

The various Nifty indices are useful for investors to make investment decisions. If you don’t want to take risks and invest in stocks directly, you can invest in Nifty index mutual funds that invest in stocks that make up the index. It saves you the trouble of finding good stocks on your own.

Author Bio :

Ritish Kumar is a finance enthusiast and a keen observer of the Indian share market today. In this series of articles, he talks about investing in stock market and staying profitable. shares to buy today, online share prices