subject: The Nifty Index And Major International Exchanges: Basic Introduction [print this page] The Nifty 50, also known as just Nifty, is a well-known benchmark index or the stock market index for the equity market of India. It is managed by the India Index Services and Products Ltd. It covers 22 sectors of the economy of India. It gives a clear picture of the Indian market in a single portfolio thus acting as a benchmark for investments in India. It is mainly a composition of 50 most liquid and largest stocks on the National Stock Exchange (NSE).
Nifty Index represents at least 50% of the market capitalisation of all the stocks in the various stock exchanges in India. The companies which are represented in this index are generally characterised by their consistent growth of earnings and their high price-to-earnings (P/E) Ratio.
Major Stock Exchanges
A company first comes with an initial public offering (IPO) to make its stocks available on an exchange. These shares are sold to the primary market, which can be further sold and purchased on any of the exchanges. The flow of demand and supply of the stocks determine their prices.
USA: The New York Stock Exchange is by far the largest stock exchange in the world. The NASDAQ is the second largest exchange after the NYSE although it was the worlds first electronic market.
The London Stock Exchange and Tokyo Stock Exchange in the UK and Japan respectively are the next largest stock exchanges followed by the Euronext a pan European index.
Some important Asian indices that we in India, usually refer, are Nikkei 225, Strait Times, Hang Seng, Taiwan Index, KOSPI and Shanghai Comp.
BSE Index or the Sensex is Indias most tracked index originating from the Bombay Stock Exchange. The BSE, Asias oldest exchange lists more than 6,000 companies. It has developed Indias capital markets, that is, the retail debt market and also helped the Indian corporate sector to grow. The Sensex is an index of 30 large stocks covering 12 sectors. The Securities and Exchange Board of India (SEBI) is the regulatory authority of Indian stock markets.
Today, many websites enable you to check the latest share prices, mutual funds, futures and options. They give latest share market updates along with valuable expert analysis and corporate news that affect trading and investing trends. Getting BSE Live on handheld devices is also possible these days.
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A stock exchange is like a high-end flea market where a buyer (of stocks) can connect with the seller (of stocks). There are several stock exchanges in India and abroad. Earlier there used to be an open outcry system which later became completely electronic. This article provides a basic introduction to some major stock exchanges from an Indian perspective.
