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What is bank nifty and how is it calculated?

Bank nifty is a term used in markets to refer to Indian bank nifty futures. Bank Nifty futures contract trades on National stock exchange of India Ltd. In order to trade on the NSE, you’ll need an intermediary or best penny stocks advisor to do it for you (broker or stock advisory) and that is pretty much all you need to know in order lest you want to dive into clearing corporation and Depository participant and such areas.

What is bank nifty?

BANK nifty is the combination of bank nymex and bank bitstamp. It can be used to get the idea on the price trends of bitcoin by using the previous price history from both exchanges. It might seem complex, but it really isn’t. Nifty is a stock exchange in India. NSE stands for National Stock Exchange,India.

It is the only stock market in India that allows foreign investors and stock advisory to trade Indian stocks direct without creating an account on the domestic stock market. It’s calculated using a combination of free-float market capitalization and price. There are broad parameters for inclusion in the index, but there is no universal consensus for their exact values.

Bank nifty calculation method

Nifty is one of the leading stock market index in India. It consists of 50 companies from top 500 companies in India. It also contains 30% weightage to IT sector, 13% weightage to Capital Goods Sector and 11% weightage to Consumer Durable Sector. This method of calculating nifty increases liquidity in the market. The NIFTY index consists of 50 stocks and a few shares of the companies in it are weighted according to the perceived size, liquidity and sector composition of their listed securities.

The bank nifty is a modified capitalization-weighted index. The weights are adjusted to take account of free-float as well as some additional adjustments in order to improve the liquidity and sustainability of the index.

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