You may have heard of Nifty50 if you’re a geek in the stock market. Many have marked this tool as their favourite, as it reflects the performance of the 50 most essential liquid companies on the National Stock Exchange. Covering every sector that you could think of in the Indian market, Nifty 50 today has really changed the game. Now if you’re into those financial products, like exchange-traded funds, mutual funds, and derivative instruments, then this is really the right index for you.
As you might have guessed, like any other tool, Nifty50 has its own factors, some of these are the following:
- Economic Indicators: For those Nifty50 companies, their future depends on the performance of the Indian economy. A smart investor will keep an eye on multiple economic indicators, like the GDP growth, inflation rate, interest rate, and much more related stuff that are held by India.
- Market Sentiment: Under this factor, a few other ones can also be related to it, such as the latest news, rumours, expectations, and emotions. Although some might not believe it, the mood and confidence of the investor and trader themselves actually impact the demand and supply of the stocks in Nify50.
- Global Cues: Another thing is that this kind of index is influenced by how other international markets are doing. Meaning that such performance and direction of those trade, investment, and currency flows can be a big factor.
Moving on, if you’re already getting the hang of it, and is interested in Nifty50, you might want to know the tracking process of it. Well, you can do so by doing the following:
- NSE Website: Our top option is, of course, heading over to the official site of NSE; this provides live updates on how Nifty50 is doing along with its historical data, charts, weights, and derivatives.
- Financial Websites: One simple search on your browser, you will then find many financial websites that will offer you detailed information and analysis on Nifty50’s news, views, some technical, and many more.
- Financial Apps: Now, if you’re the kind of person that takes practicality to the next level, then installing some trustworthy financial apps is truly the best option. These apps will allow you to access real-time data and alert you on Nifty50 and some cool features.
- Financial Media: For those couch potatoes, you can just simply search for financial media channels that will provide you with up-to-date coverage along with commentary, opinions, interviews, and even podcasts.
Benefits of Investing in Nifty50
We’re not done yet, this time, we will discuss some possible benefits of this really cool benchmark index for you.
- Diversification: If you’re looking for some ways to diversify your portfolio, then investing really in Nifty50 is worth trying.
- Low cost: All of us know the value of money, especially investors. Therefore, investing in Nifty50 can be done very cheaply.
- Liquidity: Not only that, but this index can offer you high liquidity, as it is one of India’s most active trade indices. It’s just like online shopping/selling, you can easily buy or sell your investments, whenever your desire wants to.
- Transparency: And, last but not least, the openness of it. You can quickly access the composition and changes of Nifty50, with its performance and returns.
There you have it, folks. Everything you need to know about the Nifty50 is all here. This index is an important indicator of the Indian economy. Reflecting the trends of India’s most significant liquid companies in various sectors. However, just a reminder, Nifty59 also involves risks and challenges, do try at your own risk. Lastly, if you’re convinced to invest in Nifty50, you can check out Finnifty, a new index that can track the performances of some liquid stocks in the financial services sector.