What is Nifty NIFTY – NIFTY Full Form, Nifty Know and Sensex Difference .How was Nifty created? What are the Nifty 50 companies | How to invest in Nifty | What is the difference between Nifty and Sensex
NSE means National Stock Exchange of India. Nifty was started in the year 1994 and 50 companies were included in Nifty. NIFTY provides information about the shares of 50 companies of National Stock Exchange of India. It is formed by mixing the words National and Fifty, hence such Nifty It is said that there is trading of shares in Nifty. To know the lion, we need to know what is the meaning of the lion. becomes a shareholder even if he has bought 100 shares, if the company goes in profit, his share price increases and if the company goes in loss then his share price decreases which also hurts the shareholder
- what is nifty
what is nifty
Nifty indexes only 50 listed companies. The National Stock Exchange has more than 6000 companies, out of which only 50 companies are indexed. Nifty does not index the rest of the companies, these 50 companies which are taken from 12 different sectors. It operates Nifty 50 companies include those companies which are financially strong, very strong and old and durable and only companies with more capital are listed in it, it was started in the year 1994 but it started its work in 1995. It was calculated by taking the market capital base value of Kia 1995 as 1000, the 50 companies that come under NIFTY
Benefits of NIFTY
- The 50 companies that are in Nifty make it easy to find out the performance of the National Stock Exchange.
- Because these 50 companies are more powerful and their information shows the economy of the country.
- Nifty shows the volatility in the stock market.
- Among the companies whose shares are bought and sold the most, these are 50 companies in the country which come under NIFTY .
- There are about 6000 companies in NSE, 60% of their capital is in Nifty.
- All these companies are very powerful, because of these companies, there is a difference in the economy of India.
What is stock market capitalization?
The stock market is also called the stock exchange, in which only shares are bought and sold, the market capitalization is the entire capital of a company, that is, how much money is invested in it, no company sells all its shares in the market, only 49% of the shares or You can sell even less than that, you can buy and sell these shares with the help of the stock exchange, the company keeps 51% of the shares with itself.
Precautions before investing in Nifty
- Buying shares from the stock market and getting profit from it is not so easy, for this you have to keep an eye on the market every day.
- Before investing money in the stock market, it is necessary to collect complete information about 50 companies of Nifty.
- Study the newspapers that come with it.
- Read the business plans of the companies carefully.
- Buying and selling shares everyday can be dangerous, it can make you more profit and can also cause more loss.
- Therefore, invest for a long time, there is less chance of loss in it.
- Do not buy shares of any company in a hurry, read about each company in detail and buy the shares of the company which is performing better.
- Buying shares of companies whose products sell more.
- We have to see which company makes more products for everyday use like shampoo oil, biscuits, cooking oil, soap and noodles etc.
- After buying a share, do not rush to sell it, for example, if a person buys a company’s share for ₹ 500, then you will already set its target price, like if you want to sell a share of ₹ 500 for ₹ 800, then like target Will come at price will automatically sell and you can avoid loss.
- Never buy more shares of any one company which is the top company, everyone should buy a few shares so that even if any of those companies are in loss then you do not suffer much loss.
- Choose only financially strong company about whom you are aware and invest in different sectors.
How was NIFTY created?
There are more than 6000 companies in the National Stock Exchange, out of which the most financially strong company is selected and it is also seen whether the products of these companies sell in good quantity or not, they are taken from 12 different sectors. Only a company with a forced sector becomes a part of it, sectors are also studied such as Daily Use Product, Real Estate Communication, Automobile, Petroleum, Refinery etc. All these are decided by an index committee consisting of big economists. And if it is in loss then the economy of the country is bad.
What is the difference between Nifty and Sensex
- Out of about 6000 companies of National Stock Exchange, 50 strongest companies of Nifty are selected, hence Nifty is a part of National Stock Exchange only.
- Similarly, the Sensex is a part of the Bombay Stock Exchange, in which the top 30 companies are listed.
- Nifty and BSE right depends on the country’s economy and determines the country’s GDP, if most companies go into profit, then the rate of GDP increases, so both are different, but their functioning is the same. to strengthen
- What is Nifty NIFTY – NIFTY Full Form, Nifty Know and Sensex Difference