How to Calculate Nifty??

Stock market is a growing trading platform where most of the investors are interested to trade. Nifty is used as an index in National Stock exchange of India, now the query arises how to calculate nifty?? Let us have a look how it is calculated. Nifty index is introduced by National Stock Exchange. Nifty is composed of two words “National” & “Fifty” fifty defines 50 national stocks include from various sectors. India is considered to be largest single financial products comprising of offshore & onshore exchange traded funds.

CNX nifty which is used as an index was founded in 1995, owned & managed by Indian index Services & Products (ISL). The CNX nifty also called nifty 50. CNX nifty is a large type cap.

Nifty is calculated as 

1) Base year is 1995 & 1000 as its base value
2) Traded in 50 stocks included from various 24 sectors

Formula of Nifty 

Nifty = (Sum of free flow market cap of 50 stocks)*index value in 1995/Market cap. Value in 1995

Nifty index is an indicator to calculate the value of measuring the existence of company stock price. While trading it can be heard that sensex has increase by 100 points or Nifty has gone up by 50 points what does it mean?? it describes that an average of 30 shares in BSE & 50 shares in NSE have performed well.
As Sensex & nifty both use as an index to measure the strength of stock market exchanges but with quite differences:

1) Nifty is the index of National Stock exchange whereas Sensex is the index of Bombay stock exchange.
2) NSE uses the base of 50 major shares which represent 24 different shares on the other side BSE      represents 330 major shares of different sectors.
3) Nifty is the indicator of major share in NSE & sensex is the indicator of shares in BSE
4) NSE is located in New Delhi whereas BSE is located in Mumbai.

There are many other indexes are used to gauge the performance of various stocks such as BSE IT & BSE Bankex.

So in this way nifty is calculated to measure the stock price. You can contact us to get more detail or visit us on: http://www.capitalstroke.com/bullion-tips.php Contact here: 9770670009, 0731-3299704