Key takeaways
- The Nifty 100 index represents the top 100 companies listed on the National Stock Exchange (NSE) based on market capitalisation.
- The Nifty 100 provides broader market exposure than the Nifty 50, including both large-cap and additional mid-cap stocks.
- Investors widely use the Nifty 100 index to track the overall market performance and determine the market trend.
Investors invest in the stock market after analysing numerous factors that affect the stock, such as its fundamentals. However, one important factor they analyse before investing is the market trend. A trend is the general direction of the stock market, and investors analyse the current trend (bearish or bullish) and combine it with other factors to predict whether the price will go up or down in the coming days. However, as the Indian stock market contains thousands of listed stocks across various industries, it is difficult to analyse them all to determine the general performance of the stock market. This is where stock market indices help investors. Stock market indices track the performance of specific groups of companies to help investors determine the general market trend. One of the most widely used stock market indices is Nifty 100.
If you are a stock market investor, it is crucial to know about Nifty 100. This blog will help you understand the Nifty 100 and Nifty 100 stocks list to help you better analyse the general performance of the overall stock market.
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What is the Nifty 100 index?
The Nifty 100 is an Indian stock market index that tracks the performance of the top 100 companies listed on the National Stock Exchange (NSE). The companies included in the Nifty 100 stocks list are chosen based on their market capitalisation. This means that the 100 companies included in the Nifty 100 are the top 100 companies with the highest market capitalisation in India. The Nifty 100 index includes 50 additional companies in addition to the companies included in the Nifty 50 index. The index serves as a benchmark for large-cap companies and reflects India's overall economic health and market trends.
Investors analyse the performance of the Nifty 100 as an approximation of the overall market performance. If Nifty 100 has risen in price, it may potentially indicate a bullish trend in the market. On the other hand, if the Nifty 100 has fallen in price, it may potentially indicate a bearish trend.
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