NIFTY is known as the best possible type of equity benchmark index in India which has been introduced by the national stock exchange on April 21, 1986. Since then, it has risen very fast from 835 to 10,800 and different kinds of indices were established later on in the same year as well. NIFTY 50 is considered to be a term which can be easily broken down into two words which are the NIFTY and the 50. Basically, this is one of the major indices of the stock market that will be comprised of the weightage average of the stocks of the 50 largest Indian companies on the national stock exchange. It will be covering around 13 sectors and one of the most commonly traded contracts as well. It is very much important for people to be clear about the calculation aspect associated with it so that everyone will be able to indulge in the best possible type of decision-making throughout the process without any kind of problem.
Since the year 2009 NIFTY has been very well calculated with the utilisation of the free float market capitalisation method and this particular method will be taking into consideration different kinds of changes in the index as well as actions associated with the stock split, rights issue without affecting the overall value of the index. On the overall basis it will be very much helpful in providing people with a good understanding of the relative value to the base period throughout the process and further having an idea of nifty share price is vital.
Index value in this case is known as the current market value divided by base market capital into the value of the base index. In the above-mentioned popular the market value will be calculated as the product of separate shares and the market price per share so that everyone will be having a crystal-clear idea about the weighted cost and other associated things in the whole process. In this particular case, people will be able to analyse the greater impact over the value very successfully so that everyone will be able to carry out the things as per the best possible Capital understanding without any kind of doubt. The prescription selection criteria associated with the NIFTY have been explained as follows:
- The criteria for inclusion in the benchmark NIFTY index is that the stock should have traded at an average impact cost of 0.5% or less in the past six months. It should also have at least twice The floated adjusted market capitalisation value in comparison to the latest small index constitute
- The company should be based in India and the company should be very well traded on the exchange
- The stock of the company should be easily made available to the future and options trading segment on the NSE
- Market capitalisation, frequency of trading and liquidity should also be taken into consideration in the whole process.
Hence, indulging in the sectoral analysis of the nifty share price is also very much important so that everyone will be able to develop a good understanding of things with the help of experts at 5paisa.
