Glossary
Nifty 50
M0.02 · M7.07Also called Nifty, Nifty 50 index.
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, which is why index weight and company size are not the same thing.
The index is reviewed on a schedule, and inclusion produces mechanical buying from funds that track it, which is a predictable and temporary price effect.
It is the default benchmark against which Indian equity performance is judged.