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How Nifty50 is calculated ?

Nifty Calculation:

Nifty is calculated through the technique of free-float market capitalization. They contain the total market capitalization of the organizations weighted via their effect at the index, so the larger shares could make more of a difference to the index compared to a smaller marketplace cap organization.  it will get the index bar in their modern values of your NEST trading platform. Here NEST trader approach means it is an effective advanced software in share trading in India.

Marketplace Capitalization           = Shares outstanding * Market Price Per Share

Free Float Market Capitalization  = Shares outstanding * Price * IWF (Investible Weight Factor)

Index value                                   = Current Market Value / Base Market Capital * Base Index Value

Understanding Free-Float Market Capitalization

Free float shares are those large stocks of a company that are traded within the open market for trading. Not all stocks issued by the company are free float. Every company has free-floating stocks. They could provide in the open marketplace for buying and selling. however now not giving all shares totally free float. However through the simplest government or corporation promoters or foreign direct investors. Many buyers look to active securities due to the fact they could exchange them even it is a large amount of without a lack of their rate.

Key Factors While Calculating NIFTY

1995 is taken to be the base 12 months

the base price is set at one thousand

The nifty calculation is executed taking into consideration 50 stocks which might be actively traded on NSE

those 50 top stocks belong to 24 sectors.

For More Information:







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