S&P CNX Nifty
Encyclopedia
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 fund
s. 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 four scrips in the index (Reliance Industries, Infosys Technologies, ICICI Bank and Larsen & Toubro) account for about one third of the weight in the index whereas the top eight scrips account for about half the weightage in the index.
The base period for the S&P CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of NSE's Capital Market Segment. The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion.
The S&P CNX Nifty Index was developed by Ajay Shah and Susan Thomas.
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
CRISIL
CRISIL
Credit Rating and Information Services of India Ltd. a global analytical company providing ratings, research, and risk and policy advisory services....
NSE
National Stock Exchange of India
The National Stock Exchange is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization...
Index
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
50 or S&P CNX Nifty nicknamed Nifty 50 or simply Nifty (NSE: ^NSEI), is the leading index
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
for large companies on the National Stock Exchange of India
National Stock Exchange of India
The National Stock Exchange is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization...
. The Nifty is a well diversified 50 stock index accounting for 23 sectors of the economy
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index fund
Index fund
An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions.-Tracking:Tracking can be achieved by trying to hold all of the...
s. Nifty is owned and managed by India Index Services and Products Ltd
India Index Services and Products
India Index Services & Products Ltd. is a joint venture between the National Stock Exchange of India Ltd. and CRISIL 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 four scrips in the index (Reliance Industries, Infosys Technologies, ICICI Bank and Larsen & Toubro) account for about one third of the weight in the index whereas the top eight scrips account for about half the weightage in the index.
The base period for the S&P CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of NSE's Capital Market Segment. The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion.
The S&P CNX Nifty Index was developed by Ajay Shah and Susan Thomas.
See also
- CRISILCRISILCredit Rating and Information Services of India Ltd. a global analytical company providing ratings, research, and risk and policy advisory services....
- India Index Services and Products LtdIndia Index Services and ProductsIndia Index Services & Products Ltd. is a joint venture between the National Stock Exchange of India Ltd. and CRISIL Ltd....
- NSENational Stock Exchange of IndiaThe National Stock Exchange is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization...
- Standard & Poor'sStandard & Poor'sStandard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
- Index FundIndex fundAn index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions.-Tracking:Tracking can be achieved by trying to hold all of the...
External links
- Official Homepage
- List of historical changes to constituent list
- Summary for S&P CNX Nifty - Performance and statistics from Yahoo!Yahoo!Yahoo! Inc. is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine , Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping ,...
Finance - http://www2.standardandpoors.com/spf/pdf/index/CNX_Nifty_Methodology.pdf
- SGX Nifty Live
- Nifty Options Trading website