Nifty 50

The benchmark index of fifty large Indian companies, weighted by free-float market capitalisation.

Free-float weighting means a company where the promoter holds 75% contributes only a quarter of its market capitalisation to the index. Index weight and company size are therefore not the same thing.

Its membership is reviewed on a schedule. Inclusion produces mechanical buying from funds that track the index, and the price effect is predictable and temporary.

It's the default benchmark against which Indian equity performance is judged.