By:- B.T Team
Image Credit:- Google
Nifty 50, India's premier index, was launched on April 22, 1996, revolutionizing stock market tracking in the country.
Born in 1996:
The Nifty 50 includes companies from 13 diverse sectors, offering a comprehensive view of the Indian economy.
Global Recognition:
The Nifty 50 is recognized internationally, ranking among the world's top indices for tracking emerging markets.
Base Year and Value:
– The index was benchmarked to a base year of 1995 with a base value of 1,000 points.
Over 30% of the Nifty 50's weightage is contributed by the Banking, Financial Services, and Insurance (BFSI) sector.
Dominated by BFSI:
Foreign Influence:
Approximately 20% of the Nifty 50 market cap is held by Foreign Institutional Investors (FIIs).
ETF Evolution:
The first exchange-traded fund (ETF) based on the Nifty 50 was introduced in 2001, known as "Nifty BeES.
Stock Screening Process:
To enter the Nifty 50, companies must pass stringent liquidity, free-float, and market capitalization criteria.
– The index is reviewed semi-annually, ensuring it remains relevant to market conditions.
Resilient Performer:
Despite global crises like the 2008 financial meltdown and COVID-19, Nifty 50 has consistently rebounded stronger.