About the NIFTY Index
A stock market index is created by selecting a group of stocks that are representative of the whole market or a specified sector or segment of the market. An Index is used to give information about the price movements of products in the financial, commodities or any other markets. The NIFTY 50 is a diversified 50 stock index accounting for 12 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds. Points to Note: The NIFTY 50 Index represents about 62.9% of the free float market capitalization of the stocks listed on NSE as on March 31, 2017. NIFTY 50 is ideal for derivatives trading.