In the Indian Stock Market, There are two main exchanges: the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Listing of the company and trading of shares are carried out through these two exchanges.
Bombay Stock Exchange (BSE) was established in 1875 in Bombay (Bombay is renamed now Mumbai), India. It is one of the oldest and largest exchanges in the world. Presently, BSE is dealing with a capitalization nearing US$5 Trillion. The total number of listed companies including other entities is around 5200. Other entities mean other than the equity (cash) market. For example - Exchange Traded Fund (ETF), Debt fund, etc.
The National Stock Exchange (NSE) has been operational in Mumbai (India) since 1994. It is also one of the largest stock exchanges in the world and deals with a capitalization likely to touch US$5 trillion. Roughly more than 2200 companies are listed in the NSE.
Both the exchanges (NSE and BSE) have national importance. The listed companies and other entities available for trade are grouped under various categories in both exchanges.
Here we will go ahead with the categories of companies listed in NSE.
The performance of the companies listed in one group is shown by the average moving performance of all companies within the group and is termed an Index value. In this way, various groups have their indexes and moving values. The plural forms of index are Indexes or Indices and both forms of the plural are used frequently.
The Prefix word NIFTY is used for an index for the companies listed in NSE. Actually Nifty is the combination of two words ( NSE + FIFTY = NIFTY). It indicates the index of top 50 large cap companies listed on NSE. The name NIFTY 50 to NIFTY index is given to differentiate it from other indexes like Nifty 100, Nifty 500 etc.
Nifty 100 is a group of 100 top large cap companies by market capitalization which are listed on the NSE.
Nifty IT is a group of 10 top IT companies by market capitalization which are listed on the NSE.
Nifty Metal is a group of 15 top metal companies by market capitalization which are listed on the NSE.
In this way, several indexes are formed for NSE-listed companies and entities.
Now we will focus here on the NIFTY 50 index. As we mentioned earlier it is the group of top 50 large-cap companies based on market capitalization value. In general terms, when we say that the market on NSE is moving up or down it means that Nifty 50 is moving up or down respectively. So it is a leading indication of market mood.
The companies included in the NIFTY 50 index at the end of March 2024 are placed rank wise in the below table. However, it should be kept in mind that the ranking of the companies are based on market capitalization and other factors. Inclusion and exclusion of companies in the index is carried out from time to time based on the moving stock value etc. Therefore to know about the status of a company on a particular date, you may refer to NSE or other concerned websites.
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