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Stock Exchange

bsai partish (166 Points)

10 August 2020

NIFTY 11270.15(today's)
Meaning of 11270.15

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4 Replies

Sasi mcvv (73 Points)
Replied 10 August 2020

It is an index number

bsai partish (166 Points)
Replied 10 August 2020

Pls give clear explanation

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 10 August 2020

There are thousands of company listed on a stock exchange, hence it’s really hard to track every single stock to evaluate the market performance at a time. Therefore, a smaller sample is taken which is the representative of the whole market. This small sample is called Index and it helps in the measurement of the value of a section of the stock market. The index is computed from the prices of selected stocks.

Nifty is one Index generally comprises of fifty actively traded stocks. Nifty is also known as Nifty50 or CNX Nifty.

An index is basically an indicator which gives us a general idea about stocks going up or down.

The Nifty is calculated taking into consideration stock prices of 50 different companies listed on BSE (And eligible to be included in Nifty calculation aa per criteria) . It is calculated using the prescribed method (“free-float market capitalization” method.)

So, In General it's average of that 50 companies's Price/value/capitalisation calculated with specific method.

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