hah and Dr. Susan Thomas, (then at Centre for Monitoring Indian Economy Pvt. Ltd.- CMIE (www.cmie.com) and now at Indira Gandhi Institute of Development Research (IGIDR - www.igidr.ac.in), to conduct research on methods in index construction. This work was funded by the USAID FIRE project (www.usaid.gov) and led to the NIFTY 50. Some of their research is visible over the Internet at www.igidr.ac.in/~ajayshah
In 1998, NSE and CRISIL launched a joint venture named NSE Indices to focus on index management. This pools the index development efforts into a coordinated whole, India's first specialised company focussed upon the index as a core product. In August 2013, CRISIL Limited, erstwhile 49% stake holder in NSE Indices sold its entire stake in NSE Indices to NSE Investments Limited (formerly known as NSE Strategic Investment Corporation Limited), a subsidiary of the National Stock Exchange India Limited and hence NSE Indices has since become wholly owned subsidiary of the NSE Investments Limited (formerly known as NSE Strategic Investment Corporation Limited). Today, the NIFTY 50 is owned and operated by NSE Indices. It is a global phenomenon where an independent company calculates and maintains the index.
No. It's purely coincidental. It was research that led to the choice of 50 stocks as the optimal size of an index in the Indian equity market. One day, a clever leap was made from NSE-50 to ' NIFTY 50'.
NIFTY50 USD is NIFTY 50, measured in dollars. If the NIFTY 50 rises by 2% it means that the Indian stock market rose by 2%, measured in rupees. If the NIFTY50 USD rises by 2%, it means that the Indian stock market rose by 2%, measured in dollars.
The NIFTY 500 is India’s broadbased index of the Indian capital market. The NIFTY 500 represents about 95% of free-float market capitalisation and about 92% of the total turnover on the NSE. The NIFTY 500 is a free-float market capitalisation weighted index. The base date for the index is the calendar year 1994 with the base index value being 1000. Companies in the index are selected based on their market capitalisation and trading interest which is measured by average daily turnover. The index is calculated and disseminated real-time.
NIFTY 50 is the first rung of the largest, highly liquid stocks in India. NIFTY Next 50 is an index built out of the next 50 large, liquid stocks in India. It is not as liquid as the NIFTY 50, which implies that the information in the NIFTY Next 50 is not as noise-free as that of the NIFTY 50. It may be useful to think of the NIFTY 50 and the NIFTY Next 50 as making up the 100 most liquid stocks in India. NIFTY 50 is the front line blue-chips, large and highly liquid stocks. The NIFTY Next 50 is the second rung of growth stocks, which are not as established as those in the NIFTY 50. A stock like Bosch Ltd., which recently (in May 2015) graduated into the NIFTY 50, was in the NIFTY Next 50 prior to this. NIFTY Next 50 can be viewed as an incubator where young growth stocks are found. As with the NIFTY 50, stocks in the NIFTY Next 50 are filtered for liquidity, so they are the most liquid of the stocks excluded from the NIFTY 50. Buying and selling the entire NIFTY Next 50 as a portfolio is feasible. The maintenance of the NIFTY 50 and the NIFTY Next 50 are synchronised so that the two indices will always be disjoint sets; i.e. a stock will never appear in both indices at the same time. Hence it is always meaningful to pool the NIFTY 50 and the NIFTY Next 50 into a composite 100 stock index or portfolio.