NIFTY

Why in news?

• NIFTY and Sensex continue their slide amidst COVID-19 fears.

About NIFTY

• NIFTY, also called NIFTY 50, is the market index consisting of 50 well-established and financially sound companies listed on National Stock Exchange of India (NSE).
• Full form of NIFTY is National Index Fifty.
• It represents the weighted average of 50 Indian company stocks in 13 sectors and is one of the two main stock indices used in India, the other being the BSE Sensex.
• The base year is taken as 1995 and the base value is set to 1000.
• Nifty is calculated using 50 large stocks that are actively traded on the NSE.
• The 50 companies are selected on the basis of the free-float market capitalization.
• Nifty is owned and managed by India Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited.

Prelims Question

Q.Which of the following statements regarding NIFTY is/are correct?
1. It is a stock market index consisting of 20 companies listed on National Stock Exchange (NSE)
2. It is owned and managed by Securities and Exchange Board of India (SEBI)
Select the correct answer using the code given below:
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Answer to the Prelims Question