If you love the speed of transactions and the automated cycles of all your Demat accounts then you must be well aware of the National stock exchange of Delhi also called NSE with its Nifty index. So, we need to check out some reasons why we need to celebrate its famous index nifty’s 25th birthday
for everyone who ardent follower of the Indian stock exchange their first love must be NSE than the other stock exchanges in India. let’s see one by one how nifty is so special for all the traders in the Indian markets and for global players who invest in the Indian markets as their first choice.
- Nifty also called nifty 50 represents the biggest 50 companies in terms of market capitalization also called market cap within the same market which makes it’s a huge index than the other indices.
- Though there are many listed companies in the Indian stock exchange but the most respected in of management and cooperate culture companies prefer to get listed NSE first than other stock exchanges in India
- From 1996 since its inception, the nifty index was able to bounce up to 14000 plus points from its inception point of 1000 basis points which counts to 11.35% of compound annual growth rate simply called as CAGR by any economy experts
- From the inception nifty the companies which were listed there with the market capitalization of crores like top 5 market cap companies in 1995 were like SBI(14,482 cr), tata motors(11,633cr), HUL(11,707 cr), RIL(10,945 cr) are now turned into companies with trillions market capitalizations companies like top 5 market cap companies like RIL(12.5 tr), HDFC bank(7.8 tr) Infosys(5.8 tr) HDFC(4.5 tr) ICICIbank (4.0 tr).
- NSE was the first de-materialized stock exchange of India which launched nifty just within 3-4 years of its inception and made it very popular to the present date.
- Nifty started giving importance to free float capital than the total market capitalization for weightage in the Nifty index.
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