Hi Rahul, Yes, the script should have enough liquidity to qualify to be part of the nifty 50. Once the script qualified there will be lot buying and selling activities by mutual funds , ETFs and by hedge funds which Wil make the stock to be more liquid…
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Hello Trader,
These stocks are liquid for positional and investment.
However for intraday trades , you need to check daily volumes to avoid loosing on slippage.
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The exchange even has criterias to include a script in the index which is -
- 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.
Refer to the link Criteria for Selection of Constituent Stocks to know the other criteria`s.
As these are the top 50 companies in terms of market cap and also FIIs & many mutual funds who replicate the returns of these index has to keep on investing in all these top companies..
so we can assume that they are the all very liquid.
You can also invest in the Nifty 50 basket just by buying the Niftybees ETF which replicates the performance of the Nifty index - A Great tool for investors to stay diversified and invested in big and top performing Indian companies. So by investing in this you need not to pick and choose any individual stock rather your investment will always be in the top 50 companies of the Indian economy and the best part is that these top 50 stocks does not remain same always.....
Visit the below links for more info -
Niftybees ETF via NseIndia.com
What is Nifty 50 Index (Nifty) & How to Trade Nifty? via JustTrading.in
What is Nifty Bees ETF? How & Why to Invest in Nifty Bees?
Performance of Sensex Since 1979
Happy Trading....
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