Nifty is NSE index but still I wanted to know more about it.
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The stock market index.
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Nifty is consist of two words ‘National’ and ‘FIFTY’. The word fifty indicates that the index consists of 50 actively traded stocks from various leading sectors. Basically, nifty is consist of fifty companies from 24 different sectors”. People often confused about Sensex and nifty, to clear this confusion a trader can refer suggestions to financial market experts by taking their stock tips, market calls recommendations etc. This will help traders to understand various terms related to the stock market.
How it is calculated -
NIFTY 50 is calculated by using a free float market capitalization weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. Following are the formula used to calculate Nifty -
Market Capitalization = Equity Capital x Price
Free Float Market Capitalization = Equity Capital x Price x IWF
Index Value = Current Market Value / Base Market Capital x Base Index Value (1000)
please, can anyone derive at today’s nifty index value? all the formulas just quote examples of 2 shares , its market cap in base year, -etc etc. No working formula is found. Please help. thanks