The word Nifty means National Index for fifty. The stocks are described as ‘one-decision’ because it is extremely stable over long periods of time. Fifty times earning is not uncommon for the stocks that were assigned.
The S&P (Standard and Poor) CNX Nifty is diverse into fifty stock index accounting. It covers twenty one sectors of the economy. It is used for various purposes such as index based derivatives, index funds and benchmarking fund portfolios. It is a joint venture between the NSE and CRISIL.
IISL is the first company in India that has specialized focus on the index as a core product. It has a licensing and marketing agreement with Standard and Poor who are now the world leaders in index services. From the 26th of June 2009, the S&P CNX Nifty is computed based on the free float method.
The term Nifty Fifty is an informal term used for the fifty popular large cap stocks of the New York Stock exchange during the 1960’s and 70’s. They were regarded as solid buy and hold growth stocks. These fifty stocks were credited in the 1970’s for propelling the bull market. Till now most of them are solid performers in the market.
Some of the New York Stock Exchange Nifty fifty constituents are American Express, American Home products, Black and Decker, McDonald’s, PepsiCo, Polaroid, Xerox, The Walt Disney Company, Texas Instruments, Squibb, Revlon, Joe Schlitz Brewing, Pfizer, Johnson and Johnson, Minnesota Mining and Manufacturing (3M), IBM, International Telephone and Telegraph etc.