India is a land of many cultures and languages. Its vibrancy and quest for growth throws up as many questions as it throws up new answers.

With globalization people are constantly seeking broader horizon of knowledge and information. How much has the country prospered? How well is the economy doing? Nifty is the platform on which India finds these answers.

The Nifty Index is a composite of the top 50 stocks listed on the National Stock Exchange (NSE). It is a simplified tool that helps investors and ordinary people alike, to understand what is happening in the stock market and by extension, the economy. If the Nifty Index performs well, it is a signal that companies in India are performing well and consequently that the country is doing well.

An upbeat economy is usually reflected in a strong performance of the Nifty Index. A rising index is also indicative that the investors are gung-ho about the future.

The Nifty Index is based upon solid economic research. It is internationally respected and recognized as a pioneering effort in providing simpler understanding of stock market complexities.

Nifty is the flagship index of NSE, the 3rd largest stock exchange in the world in terms of number of transactions (Stock Futures).

*Nifty has been used to represent S&P CNX Nifty, owned and managed by India Index Services and Products Ltd. (IISL), a joint venture between NSE and CRISIL.

• Nifty index can be used by individuals to track market movements and compare performance of individual companies’ vis-à-vis market performance.



• Shareholders evaluation of management decisions - performance of a company vis-à-vis the market generally reflects the perception of the investor.



• Assist traders and market intermediaries to evaluate performance and sentiments across the market.



• Index funds can replicate Nifty indices to earn market returns.



• Derivative trading - Investors can use Nifty indices for hedging their exposures in the equity markets.



• Benchmarking NAV performances - Nifty is the benchmark for performance of open ended and close ended funds.