The NIFTY 50 is the premier index of the National Stock Exchange. The index features 50 of the largest companies, in terms of market capitalization, listed on the exchange. Since the index features companies across multiple sectors and industries, it is viewed as a general representation of the stock market as a whole.
Many investors, mutual fund houses and even companies use the NIFTY 50 as a benchmark of the stock market’s performance. Also, the future and option derivative contracts of the index are widely popular and witness exceptional trading volume every single day.