Write short notes on the following: (d) Nifty

Nifty: Nifty, short for National Stock Exchange Fifty, is the benchmark stock market index of the National Stock Exchange of India (NSE). It is a collection of 50 of the largest and most liquid Indian equities listed on the NSE, representing various sectors of the Indian economy. The index is owned and managed by India Index Services and Products Ltd. (IISL), a subsidiary of NSE. Calculation Methodology: Nifty is calculated using the free-float market capitalization weighted method . The process involves: Market Capitalization: Equity capital (number of shares outstanding) is multiplied by the stock price. Free-float Market Capitalization: The market capitalization is then multiplied by the Investible Weight Factor (IWF). IWF represents the proportion of shares available for trading freely in the market (excluding promoter holdings, government holdings, etc.). Index Value: The index value is determined daily by dividing the current market value (free-float market capitalization) by a base market capital and then multiplying it by the Base Index Value of 1000. Nifty serves as a key indicator of the overall performance and sentiment of the Indian equity market, widely used by investors, analysts, and fund managers for benchmarking portfolios and as a basis for derivative products like futures and options.