Nifty is the prime index of National Stock Exchange of India contains fifty large stocks from listed companies. National Stock Exchange(NSE) of India is located in Bombay. S&P CNX Nifty nicknamed "NSE Nifty" or Nifty, Live NIFTY index reflects overall stock market on-line statistics.
| Nifty Data | Definition - Explanation |
|---|---|
| Name of the Exchange | National Stock Exchange |
| Base Year | November 3, 1995 |
| Base Value | 1000 |
| Base capital | Base capital of Rs 2.06 trillion |
| Method of calculation | calculated using market capitalization weighted method, wherein the level of the index reflects the total market value of all the index stocks in the index relative to a particular base period of Nifty. |
| Number of scrips | 50 |
| Index calculation frequency | Real Time, During trading hours. |
| Index calculation and Maintenance | Managed by India Index Services and Products Ltd. (IISL), a joint venture between NSE and CRISIL |
NSE Nifty Index Story
S&P CNX Nifty is a well diversified fifty stock index accounting for 22 sectors of the Indian economy. S&P CNX Nifty is owned and managed by India Index Services and Products Limited (IISL). Which is a joint venture between National Stock Exchange (NSE) and Credit Rating and Information Services of India Ltd (CRISIL). IISL is India's First Company focused upon the index as a core product. IISL has a Marketing and licensing agreement with Standard and Poor (S&P), who are world leaders in index services. The total traded value of all Nifty stocks is 50% (approximately) of the traded value of all stocks listed on the NSE.
NSE Nifty Calculation Methodology
NSE Nifty Calculation is computed using market capitalization weighted method. The level of the Nse Nifty index reflects the total market value of all the 50 stocks in the index relative to base period. The NIFTY Calculation Methodology takes into account relevant changes in the index and particularly corporate actions such as Bonus, Stock Splits, Rights issue, etc.
Real time computation of Nifty
During trading hours, value of the Index is calculated automatically on real time basis. This is done automatically on the basis of on-line prices at which trades in Index constituents are executed.
Nifty Index Management
Nifty is managed by a professional team of IISL, a joint venture firm setup by NSE and CRISIL with technical assistance from Standard and Poor. There is a three-tier governance structure comprising the board of directors, Index Policy Committee and the Index Maintenance Subcommittee.
Closing Value Calculation
The Nifty index closing prices are calculated by taking the last half an hour weighted average closing prices of the constituents of the index.
Nifty Index Futures
NSE commenced trading in Index Futures on June 12, 2000. The Nifty futures contracts are based on the popular market benchmark S and P CNX Nifty Index. CNX Nifty is calculated using NSE prices, and NSE is the most liquid stock exchange in India, making it easier to do arbitrage for S&P CNX Nifty index futures.
Nifty scrip selection criteria
1. Liquidity (Impact Cost) : For inclusion in the index, the security should have traded at an average impact cost of 0.50% or less during the last six months for 90% of the observations for a basket size of Rs. 2 Crores. Impact cost is cost of executing a transaction in a security in proportion to the weightage of its market capitalisation as against the index market capitalisation at any point of time. This is the percentage mark up suffered while buying / selling the desired quantity of a security compared to its ideal price (best buy + best sell) / 2.
2. Floating Stock : Companies eligible for inclusion in S&P CNX Nifty should have atleast 10% floating stock. Floating stock shall mean stocks which are not held by the promoters and associated entities of such companies.
3. IPO New scrips : A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index like impact cost, market capitalisation and floating stock, for a 3 month period instead of a 6 month period.
4. Corporate actions : Compulsory changes like corporate actions, the stock having largest market capitalization and satisfying other requirements related to liquidity, turnover and free float will be considered for inclusion.
5. Replacement Frequency : The stock with the highest market capitalization in the replacement pool has at least twice the market capitalization of the index stock with the lowest market capitalization, it is normal process automatically.
| Date of Milestone | Nifty Index Value (points) |
|---|---|
| 11-December-2007 | 6000 |
| 27-September-2007 | 5000 |
| 01-December-2006 | 4000 |
| 30-January-2006 | 3000 |
| 09-January-2004 | 2000 |
| 09-March-1992 | 1000 |
| Name of Year | Nifty Index Value (points) |
|---|---|
| 1996 | 908 |
| 1997 | 939 |
| 1998 | 1,081 |
| 1999 | 890 |
| 2000 | 1,592 |
| 2001 | 1,254 |
| 2002 | 1,055 |
| 2003 | 1,100 |
| 2004 | 1,912 |
| 2005 | 2,115 |
| 2006 | 2,835 |
| 2007 | 4,007 |
| 2008 | 6,144 |
| 2009 | 3,033 |
| 2010 | 5,232 |
| 2011 | 6,157 |
| Date of Nifty Crash | Points down |
|---|---|
| 21-January-2008 | 496 |
| 22-January-2008 | 310 |
| 18-May-2006 | 496 |
| 17-December-2007 | 271 |
| 21-November-2007 | 220 |
| 18-October-2007 | 208 |
| 18-January-2008 | 208 |
| 16-August-2007 | 194 |
| 02-April-2007 | 185 |
| 01-August-2007 | 183 |
| Name of Company | Industry / Sector |
|---|---|
| ACC Ltd | Cement |
| Ambuja Cements | Cement |
| Axis Bank | Banks |
| Bajaj Auto | Automobiles |
| BHEL | Electrical |
| BPCL | Refinery |
| Bharti Airtel | Telecom |
| Cairn India | Oil exploration |
| Cipla | Pharmaceutical |
| DLF | Construction |
| Dr. Reddy Laboratories | Pharmaceuticals |
| GAIL | Gas |
| Grasim Industries | Textiles / Synthetics |
| HCL Technologies | Computers / Software |
| HDFC | Finance |
| HDFC Bank | Banks |
| Hero Honda Motors | Automobiles |
| Hindalco | Aluminium |
| Hindustan Unilever | FMCG / Diversified |
| ITC Ltd | Cigarettes |
| ICICI Bank | Banks |
| Infosys Technologies | Software / Computers |
| IDFC | Finance |
| Jaiprakash Associates | Construction |
| Jindal Steel and Power | Steel products |
| Kotak Mahindra Bank | Banking |
| Larsen and Toubro | Engineering |
| Mahindra and Mahindra | Auto |
| Maruti Suzuki India | Auto |
| NTPC | Power |
| ONGC | Oil Exploration |
| Power Grid Corporation | Power |
| PNB (Punjab National Bank) | Banks |
| Ranbaxy Laboratories | Pharma / Drugs |
| Reliance Capital | Finance |
| Reliance Communications | Telecommunication |
| Reliance Industries | Refinaries |
| Reliance Infrastructure | Infrastructure |
| Reliance Power | Power |
| Sesa Goa | Mining |
| Siemens | Electric Equipment |
| SBI (State Bank of India) | Banking |
| SAIL | Steel |
| Sterlite Industries | Metals |
| Sun Pharmaceutical | Pharma |
| TCS Limited | Software services |
| Tata Motors | Automobile |
| Tata Power | Power Generation |
| Tata Steel | Iron and Steel |
| Wipro | Computers and Software |