Nifty 1 September 2025

The **Nifty 50** is one of the most important stock market indices in India, representing the performance of the top 50 large-cap companies listed on the National Stock Exchange (NSE). Introduced in 1996 by NSE, it serves as a benchmark index that reflects the overall health and direction of the Indian equity market. These 50 companies are carefully selected from various sectors such as banking, information technology, energy, pharmaceuticals, consumer goods, and automobiles, thereby providing a diversified view of the economy. The index is calculated using the free-float market capitalization-weighted method, which ensures that only the shares available for trading in the market are considered. Investors, traders, mutual funds, and foreign institutional investors closely track the Nifty 50 as it acts as a barometer for market sentiment and investment decisions. It is widely used for benchmarking portfolio performance, creating index funds, and derivative trading like futures and options. The index reflects not only the strength of leading companies but also the broader growth potential of the Indian economy. By capturing around 65% of the NSE’s total market capitalization, the Nifty 50 plays a vital role in guiding both domestic and global investors about India’s financial markets.