Nifty 50 stock

The Nifty 50 is a benchmark Indian stock market index that represents the weighted average of the 50 largest Indian companies listed on the National Stock Exchange (NSE). It is a diversified index accounting for 13 sectors of the economy and is used for various purposes such as benchmarking fund portfolios, index-based derivatives, and index funds.

1. **Current Performance**:
- Tata Motors, Tata Steel Ltd., and Tech Mahindra are among the constituents of the Nifty 50 as of February 8, 2024.
- The index has experienced a decline, with Tata Motors (TAMO) dropping by 4.17% to 1,096.65, Tata Steel (TISC) by 2.97% to 158.22, and Tech Mahindra (TEML) by 2.38% to 1,507.70.
2. **Sectoral Representation**:
- The Nifty 50 gives significant weightage to the financial services sector, including banking, which accounts for 33.53% of the index.
- Information technology is represented with a weightage of 13.04%, oil and gas with 12.87%, consumer goods with 8.15%, and automotive with 7.57%.
3. **Index Calculation Methodology**:
- The Nifty 50 index is a free float market capitalization-weighted index, with stocks meeting specific criteria such as trading impact cost and listing history being eligible for inclusion.
- The index was initially calculated using full market capitalization methodology but was changed to a free float methodology on June 26, 2009.
4. **Investor Consideration**:
- The Nifty 50 is a key indicator for investors, as it represents a significant portion of the Indian equity market.
- The index's performance can influence investment decisions and market sentiment.

The Nifty 50 is a comprehensive index that reflects the performance of a wide range of sectors in the Indian economy. Its diversified composition and significant market influence make it a crucial benchmark for investors and market analysts.