4.10 NIFTY

NATIONAL STOCK EXCHANGE'S NIFTY 50

Similar to the BSE, the NSE also has the index ‘S&P CNX NIFTY’ which stands for Standard and Poor’s CRISIL NSE Index Fifty. It was launched in 1996. This is also known as NIFTY in short. It is an indicator of all the major companies of the NSE. As the name suggests,
it has 50 stocks in its index. The criteria to add or delete a stock are similar to what we have discussed earlier about criteria for composition of BSE’s Sensex.

There are several separate indices functional in the National Stock Exchange in India. They may be enumerated as below:

S&P CNX Nifty or Nifty:
The S&P CNX Nifty covers the major 50 companies that are listed on the National Stock Exchange of India.

CNX Nifty Junior:
S&P CNX Nifty, as we discussed, is the first rung of the largest, highly liquid stocks in India. CNX Nifty Junior is an index built out of the next 50 large, liquid stocks in India. The S&P CNX Nifty and the CNX Nifty Junior make up the 100 most liquid stocks in India.

S&P CNX Defty:
S&P CNX Defty is S&P CNX Nifty measured in dollars.

CNX Mid Cap 200:
CNX Mid Cap is to capture the movement and be a benchmark of the mid cap segment of the market.

S&P CNX 500:
The S&P CNX 500 is a broad-based benchmark of the Indian capital market. The S&P CNX 500 represents about 86 per cent of the total market capitalisation and about 78 per cent of the total turnover on the NSE.

CNX IT:
Companies in CNX IT should have more than 50 per cent of their turnover from IT-related activities like software development, hardware manufacture, vending, support and maintenance.

Basic Nomenclature To Read Quote Of A Particular Stock:
You must have come across some of the terms as detailed below in most of the newspapers, websites and journals. What do they really indicate?