What is NiftyNifty was derived from the words fifty and National. Fifty, because there are 50 actively traded stocks and Nifty indicates the top stocks of the National Stock Exchange. Basically, Nifty is a stock index in India. An index is nothing but an indicator. It tells you on an average about the present condition of the stock, whether most of the stocks have gone up or most of the stocks have gone down.The Nifty is an indicator of of the 50 top major companies the major companies of the National Stock Exchange. Nifty even foretells market movement. If the Nifty index goes up, it shows that a majority of the stocks in India went up during the given period. If the Nifty index goes down, this shows that the stock price of most of the major stocks on the Bombay Stock Exchange have gone down.
The futures instrument is a derivative contract that is attributed its value from a rudimentary selling point. In the context of Nifty futures, the rudimentary selling point is the Index. Hence the Nifty Futures attributes its value from the Nifty Index. Therefore, if the value of Nifty Index goes up, then the value of Nifty futures also goes up. Nifty Futures are the most traded contracts in India.25% of the companies whose stock is sold on Nifty are banks, other players are big names in the country like Cipla, Zee entertainment, Tata Consultancy Services Ltd., Power Grid Corporation of India Ltd., Ultra Tech Cement Ltd., Bosch, and Wipro. Prior to 2011, the Nifty had downward trend but shot up 2011 onwards, with regular fluctuations.
Since then, Nifty hasn’t dropped drastically but keeps dropping and coming back up frequently.In the present financial year, Nifty dropped 490.95 points because of the crash of the Chinese stock market on 24 August, 2015 and 234.45 points due to the depreciation of the rupee on the 16th of the same month and again another time on the 27th. On May 6, 2015 NSE Nifty slipped below the 8,200-level by falling 179.25 points or 2.15 per cent to 8145.55.