Stock MarketBeginner
NIFTY 50
India's benchmark index of 50 large companies listed on the NSE.
Detailed explanation
Constituents are weighted by free-float market capitalisation, so bigger companies move the index more. It is reviewed periodically, and it serves as the reference return that most large-cap funds are measured against.
Example
If the index moves from 24,000 to 24,240, that is a 1% gain for the broad large-cap market that day.
Why it matters
It is the default yardstick for 'how did the market do' and the benchmark most index funds and ETFs replicate.
Key points
- Free-float weighted, not equal weighted.
- Total Return Index adds dividends and is the fairer benchmark.
- SENSEX is the 30-stock BSE equivalent.
Related terms
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.