What is NIFTY 50 and NIFTY 500
The NIFTY 50 is the flagship index on the National Stock Exchange of India Ltd. (NSE). The Index tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian securities. It includes 50 of the approximately 1600 companies listed on the NSE, captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market.
The NIFTY 50 covers major sectors of the Indian economy and offers investment managers exposure to the Indian market in one efficient portfolio. The Index has been trading since April 1996 and is well suited for benchmarking, index funds and index-based derivatives.
The NIFTY 50 is owned and managed by India Index Services and Products Ltd. (IISL). IISL is India’s first specialized company focused on an index as a core product
Source – NSE
The NIFTY 500 represents the top 500 companies based on full market capitalisation and average daily turnover from the eligible universe.
It represents about 94% of the free float market capitalization of the stocks listed on NSE as on March 31, 2016.
The total traded value for the last six months ending March 2016, of all Index constituents is approximately 87% of the traded value of all stocks on NSE.