Nifty50 Full-form is “National stock exchange nifty” it is a board index of NSE. Nifty means the index of the 50 most actively traded stocks from across all sectors. Nifty consists of the top 50 companies from 24 different sectors. The companies in the Nifty were characterized by consistent earnings growth and high P/E ratios. T. Here P/E ratio full form is Price-to-Earning Ratio.
Highlights:
Nifty is an equity benchmark index in India introduced by the national stock exchange on April 21, 1996. Nifty has 50 stocks in all 24 sectors. It is used for a variety of purposes, such as portfolios of benchmark funds, index-based derivative products, and stock funds.
Liquidity:
Nifty50 has 50 stocks represent about 65% of total adjusted market capitalization all through India.
Stock Market impact cost is the best measure of a stock’s liquidity. It accurately reflects the benefits of actually trading an index. To qualify for inclusion in the NIFTY, it does have a consistent market impact cost with less than 0.50 cent, when doing NIFTY fifty Rupees (Rs) 10 crores.
Advantages of trading in nifty50:
In the stock market, new investors can attract the value of nifty or Sensex. Here nifty means national stock exchange and Sensex means the Bombay stock exchange.
Here nifty50 has involved 50 different stocks in the stock market. we have to track the company development before investing in individual stocks.
Disadvantages of trading in nifty 50:
In nifty you don’t get any dividend but in stocks, you will get dividends without selling your stock. If investors can keep stocks for a long time then they get huge income from the stocks.
In nifty 50 you can get only large-cap stocks. For the smart investor, it offers opportunities such as mid-cap and small-cap stocks.