DEFINITION 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.

The Nifty is an "index". What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The Nifty is an indicator of all the major companies of NSE. If Nifty goes up, it means that the prices of the stocks of most of the major companies on the NSE have gone up. If the Nifty goes down, this tells you that the stock price of most of the major stocks on the NSE have gone down. Nifty represents the top stocks of the NSE. NSE is National Stock Exchange. It is situated at Delhi. This is one of the major stock exchanges in the country. There are other stock exchanges like the Bombay Stock Exchange, Calcutta Stock Exchange etc. Most of the stock trading in the country is done though the BSE & the NSE.

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