What is the Full Form of NIFTY in The Share Market?

The NIFTY Full Form in Share Market is National Stock Exchange Fifty. This key index showcases the performance of 50 leading Indian companies on the National Stock Exchange (NSE). Think of NIFTY as a mirror reflecting the health and trends of India’s stock market. It gives everyone a clear picture of how well the market is doing and what investors are feeling about it.

How Is NIFTY Calculated?

So, how do they figure out what NIFTY’s number is? It’s all about the free float market capitalization method. This just means they look at the shares available for everyone to buy and sell, not counting the shares big bosses and special investors hold. To get the magic NIFTY number, they use the market’s current value, mix it with the base market capitalization, and the starting point of the index, usually pegged at 1000.

Eligibility Criteria For NIFTY Index Listing

Want your company to shine on the NIFTY 50 scoreboard? There are a few boxes to tick off. The company needs to be based in India, traded on the NSE, and its stocks should be easy to buy and sell. Specifically, its shares must have been active on most trading days in the last six months, not cost too much to trade (impact cost of 0.50% or less), and be big enough to rank in the top 800 based on market cap. There’s also a need for a 100% trading presence and hitting certain market cap figures.