What is NIFTY:
is an Index computed from performance of top stocks from different
sectors listed on NSE (National stock exchange).Nifty consists of 50
companies from 24 different sectors? NIFTY stands for National Stock Exchange’s Fifty. The companies which form index of NIFTY may vary from time to time based on many factors considered by NSE.
It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.
S&P CNX Nifty is owned and managed by
India Index Services and Products Ltd. (IISL), which is a joint venture
between NSE and CRISIL. IISL is India's first specialised company
focused upon the index as a core product. IISL has a Marketing and
licensing agreement with Standard & Poor's (S&P), who are world
leaders in index services.
History
NSE NIFTY index statistics, Calculation Methodology and History
|
Nifty Data
|
Definition - Explanation
|
Name of the Exchange
|
National Stock Exchange
|
Base Year
|
November 3, 1995
|
Base Value
|
1000
|
Base capital
|
Base capital of Rs 2.06 trillion
|
Method of calculation
|
Calculated
using market capitalization weighted method, wherein the level of the
index reflects the total market value of all the index stocks in the
index relative to a particular base period of Nifty.
|
Number of scripts
|
50
|
Index calculation frequency
|
Real Time, During trading hours.
|
Index calculation and Maintenance
|
Managed by India Index Services and Products Ltd. (IISL), a joint venture between NSE and CRISIL
|
CALCULATION METHOD:
S&P
CNX Nifty is computed using market capitalization weighted method,
wherein the level of the index reflects the total market value of all
the stocks in the index relative to a particular base period. The method
also takes into account constituent changes in the index and
importantly corporate actions such as stock splits, rights, etc without
affecting the index value.
REAL TIME COMPUTATION
During
trading hours, value of the Index is calculated automatically on real
time basis. This is done automatically on the basis of on-line prices at
which trades in Index constituents are executed.
SELECTION CRITERIA
1. Liquidity
(Impact Cost) : For inclusion in the index, the security should have
traded at an average impact cost of 0.50% or less during the last six
months for 90% of the observations for a basket size of Rs. 2 Crores.
Impact cost is cost of executing a transaction in a security in
proportion to the weight age of its market capitalisation as against the
index market capitalisation at any point of time. This is the
percentage mark up suffered while buying / selling the desired quantity
of a security compared to its ideal price (best buy + best sell) / 2.
2. Floating Stock: Companies eligible for
inclusion in S&P CNX Nifty should have at least 10% floating stock.
Floating stock shall mean stocks which are not held by the promoters
and associated entities of such companies.
3. IPO New script: A company which comes
out with an IPO will be eligible for inclusion in the index, if it
fulfils the normal eligibility criteria for the index like impact cost,
market capitalisation and floating stock, for a 3 month period instead
of a 6 month period.
4. Corporate actions: Compulsory changes
like corporate actions, the stock having largest market capitalization
and satisfying other requirements related to liquidity, turnover and
free float will be considered for inclusion.
5. Replacement Frequency: The stock with
the highest market capitalization in the replacement pool has at least
twice the market capitalization of the index stock with the lowest
market capitalization, it is normal process automatically.
LAST FEW MONTHS INDEX:
|
FEB-12
|
JAN-12
|
DEC-11
|
NOV-11
|
OCT-11
|
HIGH
|
5606.70
|
5217.00
|
5099.25
|
5326.45
|
5399.70
|
|
LOW
|
5159.00
|
4588.05
|
4531.15
|
4639.10
|
4728.30
|
|
CLOSE
|
5564.30
|
5199.25
|
4624.30
|
4832.05
|
5326.60
|
|
NSE NIFTY index historical values
|
Name of Year
|
Nifty Index Value (points)
|
1996
|
908
|
1997
|
939
|
1998
|
1,081
|
1999
|
890
|
2000
|
1,592
|
2001
|
1,254
|
2002
|
1,055
|
2003
|
1,100
|
2004
|
1,912
|
2005
|
2,115
|
2006
|
2,835
|
2007
|
4,007
|
2008
|
6,144
|
2009
|
3,033
|
2010
|
5,232
|
2011
|
6,157
|
Nifty value at first trading day's closing of year.