What is NIFTY?
5paisa Research Team
Last Updated: 10 Jul, 2025 03:01 PM IST

Content
- Nifty Meaning: What Is Nifty in Stock Market Terms?
- The History of Nifty: India’s Modern Market Benchmark
- Nifty’s Milestones: Mapping India’s Economic and Market Evolution
- What Are Nifty 50 Companies?
- How is NIFTY Calculated?
- Why Nifty Matters to Investors?
- Types of Nifty Indices
- Real-Life Example: How Traders Use Nifty
- Final Thoughts: So What is Nifty Really Telling Us?
If you've been anywhere near the Indian stock market, chances are you've heard the term Nifty. But what exactly is it? And why does it matter so much to traders, long-term investors, and even fund managers across the country? In this article, we’ll break it down — minus the jargon — and tell you what makes the Nifty such a key player in the world of finance.
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Frequently Asked Questions
Sensex and Nifty are important stock market indices in India. Sensex tracks 30 major companies on the BSE, while Nifty tracks 50 top companies on the NSE, both showing how the market is performing.
National Stock Exchange Fifty.
Nifty is managed and operated by India Index Services and Products Limited (IISL), a subsidiary of the National Stock Exchange of India (NSE). IISL is in charge of maintaining and calculating several indices, including those in the Nifty family.
No. NSE is the exchange. Nifty is the index that represents its top 50 companies.
Not in the index itself, but you can invest via Nifty 50 ETFs or index mutual funds.
The index tracking 50 of the largest and most traded stocks on the NSE.
As of July 2025, it has touched over 24,000.