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S&P CNX Nifty is a well-diversified 50 stock index accounting for 25 sectors of the economy.

S&P CNX Nifty

S&P CNX Nifty is a well-diversified 50 stock index accounting for 25 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds. The base date selected for calculation of Nifty is November 3, 1995. The base value of the index is 1000 and it has a base capital of Rs.2.06 trillion.

Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL has a consulting and licensing agreement with Standard & Poor's (S&P), who are world leaders in index services.

S&P CNX Nifty is based upon solid economic research. The index is calculated using market capitalization weighted method. A trillion calculations were expended to evolve the rules inside the S&P CNX Nifty index. The criteria evolved is: (i) stocks considered for the S&P CNX Nifty must be liquid by the "impact cost" criterion, (ii) the largest 50 stocks that meet the criterion go into the index.

Stock Selection Criteria for S&P CNX Nifty