The Nifty 50 is a stock market index in India that represents the top 50 companies listed on the National Stock Exchange (NSE). It serves as a benchmark for the Indian equity market, reflecting the performance of various sectors such as finance, technology, and consumer goods. Investors and analysts use the Nifty 50 to gauge market trends and make informed investment decisions. The index is calculated using free float market capitalization, which means it considers only the shares available for trading, providing a more accurate picture of market performance.