The document discusses the National Stock Exchange of India and how its indices are calculated. It provides details on: - What a stock exchange is and major exchanges in India like NSE and BSE - Background on NSE, including that it is India's largest financial market and third largest in the world in terms of trading volume. - Indices launched by NSE, including the S&P CNX Nifty 50 index which tracks the performance of 50 large, liquid companies. - How stocks are selected for the Nifty 50 based on criteria like market capitalization, liquidity, and sector representation. - The Nifty is calculated based on the free-float market capitalization of

1. WELCOME

2. NSE AND HOW IT’S INDICES
ARE CALCULATED

3. What is a Stock exchange..??
It’s a place where trading of
shares is done inform of buying
and selling .

4. Major stock exchange’s in
India..
National stock exchange
Bombay stock echange
over the counter exchange

5. NATIONAL STOCK EXCHANGE
 India’s largest financial market
 Established in November 1992
 Third in the world in terms of volume
 A market capitalization of around US$1
Trillion and over 1,652 listings as of July 2012

6. OBJECTIVES
 Nation wide trading facility for all type of
securities.
 Equal access to investors all over the country
through appropriate communication
network.
 Meeting international benchmarks and
standards.
 Enabling shorter settlement cycles and book
entry settlement system.

8. NSE LAUNCHED SEVERAL INDICES..
 S&P CNX NIFTY (STANDARD &POOR’S CRISIL
NSE INDEX)
 CNX NIFTY JUNIOR
 CNX 100 (=S&P CNX NIFTY +CNX NIFTY
JUNIOR)
 S&P CNX 500 (=CNX 100+400 MAJOR PLAYERS
ACROSS 72 INDUSTRIES)
 CNX MIDCAP( INTRODUCED ON 18 JULY 2005)

9. S&P CNX NIFTY
 It’s also called nifty50 or simply nifty ,is a stock
market index and bench mark index for Indian equity
market.
 Owned and managed by india index services and
products limited (IISL). Joint venture of NSE and
CRISIL .
 IISL India's first company focused index as a core
product.
 IISL marketing agreement and license with
standard & poor for co-branding equity indices.

10.  S&P CNX NIFTY COVERS 22 SECTORS OF THE
INDIAN ECONOMY.
 S&P CNX NIFTY STOCKS REPRESENT ABOUT
67.27% OF THE FREE FLOAT MARKET
CAPITALISATION OF STOCKS LISTED AT NSE .
 S&P CNX NIFTY IS A FREE FLOAT MARKET
CAPITALISATION WEIGHTED INDEX . UPTO 26
JUNE 2009 IT WAS CALCULATED ON FULL
MARKET CAPITALISATION METHODOLOGY.

11.  BASE PERIOD FOR S&P CNX NIFTY INDEX IS
3 NOVEMBER 1995.
 BASE VALUE OF THE INDEX HAS BEEN SET
AT 1000 , AND BASE CAPITAL OF RS.2.06
TRILLION
 S&P CNX NIFTY DEVELOPED BY AJAY SHAH
AND SUSAN THOMAS

12. S&P CNX NIFTY50 COMPANIES :

13. HOW NIFTY50 STOCKS SELECTED:
 LISTING HISTORY
 TRADING FREQUENCY
 RANK BASED ON THE MARKET CAP
(SHOULD BE AMONG TOP 100)
 MARKET CAPITALISATION WEIGHT
 INDUSTRY/SECTOR THEY BELONG
 HISTORICAL RECORD

14. FREE FLOAT MARKET CAPITALISATION..
THE VALUE OF ALL SHARES AVAILABLE
FOR PUBLIC TRADING EXCLUDING :
 THE PROMOTERS EQUITY
 HOLDING THROUGH FDI ROUTE
 HOLDING BY PVT. CORPORATES
 HOLDING BY EMPLOYEE WELFARE FUND.

15. How NIFTY is calculated..
The formula for calculating the NIFTY =
(SUM OF FREE FLOW MARKET CAP OF 50
BENCHMARK STOCKS)*INDEX FACTOR
Index Factor = 1000/Market Cap Value in 1995.
Where, 1000 is the Index value during 1995

16. Example:
Assume NIFTY has only 2 stocks namely SBI
and RELIANCE. Total shares in SBI are 500
out of which 200 are held by Government
and only 300 are available for public
trading. RELIANCE has 1000 shares out of
which 500 are held by promoters and 500
are available for trading. Assume price
of SBI Stock is Rs.100 and Reliance is
Rs.200.

17. Then "free-Floating Market Cap" of these 2
companies =
(300*100+500*200) = 30000+100000 = Rs. 130000
Assume Market Cap during the year 1995 was
Rs.25000
Then NIFTY = 130000*1000/25000 = 5200.
The methodology in the example is exactly
followed to calculate the SENSEX, only difference
being the inclusion of 30 stocks.

18. THANK YOU