India 50 (NIFTY50) is a stock index calculated on the basis of the 50 largest companies listed on the National Stock Exchange of India (NSE). It is a benchmark index of the Indian stock market, as it objectively reflects the state of the country's economy.
The NIFTY50 index includes 12 sectors of the Indian economy: finance, telecommunications, information technology, consumer goods, raw materials, energy, media, entertainment, pharmaceuticals, biotechnology, and chemicals. NIFTY50 includes India's largest holding company Reliance Industries, commercial bank HDFC Bank, telecommunications company Infosys, transnational company Tata Consultancy Services, and 46 more companies with the most liquid securities listed on NSE India.
The NIFTY50 index is often used by traders and investors as an analytical tool to track the overall performance of the National Stock Exchange of India. It is also used to assess market sentiment based on which market participants can make calculated investment and trading decisions. In addition, the index can be used to build diversified portfolios that include the highest-performing Indian stocks.
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