The Nifty is a stock market index in India that represents the performance of the top 50 companies listed on the National Stock Exchange (NSE). It is widely used by investors to gauge the overall health of the Indian equity market. The index includes companies from various sectors, providing a diversified view of the market. Investors often use the Nifty as a benchmark for their investment portfolios. It is calculated using a free float market capitalization method, which means that only the shares available for trading are considered. This makes the Nifty a reliable indicator of market trends and investor sentiment.