4.10 NIFTY

Hanumant Dhokle


Similar to the BSE, the NSE also has the index ‘S&P CNX NIFTY’ which stands for Standard and Poor’s CRISIL NSE Index Fifty. It was launched in 1996. This is also known as NIFTY in short. It is an indicator of all the major companies of the NSE. As the name suggests,
it has 50 stocks in its index. The criteria to add or delete a stock are similar to what we have discussed earlier about criteria for composition of BSE’s Sensex.

There are several separate indices functional in the National Stock Exchange in India. They may be enumerated as below:

S&P CNX Nifty or Nifty:
The S&P CNX Nifty covers the major 50 companies that are listed on the National Stock Exchange of India.

CNX Nifty Junior:
S&P CNX Nifty, as we discussed, is the first rung of the largest, highly liquid stocks in India. CNX Nifty Junior is an index built out of the next 50 large, liquid stocks in India. The S&P CNX Nifty and the CNX Nifty Junior make up the 100 most liquid stocks in India.

S&P CNX Defty:
S&P CNX Defty is S&P CNX Nifty measured in dollars.

CNX Mid Cap 200:
CNX Mid Cap is to capture the movement and be a benchmark of the mid cap segment of the market.

S&P CNX 500:
The S&P CNX 500 is a broad-based benchmark of the Indian capital market. The S&P CNX 500 represents about 86 per cent of the total market capitalisation and about 78 per cent of the total turnover on the NSE.

Companies in CNX IT should have more than 50 per cent of their turnover from IT-related activities like software development, hardware manufacture, vending, support and maintenance.

Basic Nomenclature To Read Quote Of A Particular Stock:
You must have come across some of the terms as detailed below in most of the newspapers, websites and journals. What do they really indicate?

Scrip Code /Symbol / Ticker A unique code assigned to a stock of a company by exchanges.
Scrip Name The name of the company.
LTP A short form for the last traded price of a particular stock.
Previous Close The closing price of a particular stock for the previous trading day.
Net Change The difference between today’s last trade
  and the previous close price expressed in absolute terms.
% Change The difference between today’s last trade and the previous close price expressed in percentage.
Weighted AveragePrice The sum of value of trades divided by the volume at a given point of time for a particular stock.
52 Week High The highest price for a stock during the past year or 52 weeks.
52 Week Low The lowest price for a stock during the past year or 52 weeks.
Open The opening price for the day or first trade price of the day.
High The intra-day high trading price for a particular stock.
Low The intra-day low trading price for a particular stock.
LTQ The last traded quantity reported at the last traded price.
TTQ The total volume in each stock reported between the trading hours.
Bid Qty / Rate Or Buy Qty / Price The quantity and price that an investor is willing to pay for a given stock at that point
  of time.
Ask Rate / Qtyor The price at which someone who owns a
Sell Qty / Price stock offers to sell it with the offer of a cor-responding quantity.
ND Date Start/end date during which no delivery is required to be given.
Ex-Date Date on or after which trading in stock begins without entitlement (cash or stock) included in the contract price.
PE Ratio Or Price/Earnings Ratio It is calculated by dividing the current stock price by earnings per share from the last four quarters.
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