The Nifty 50 was a group of the 50 most popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s. The group included Walt Disney, Coca-Cola, Dow Chemical, IBM and McDonald's. Nifty 50 stocks were widely regarded as solid buy-and-hold equities and the companies in the group were characterized by consistent earnings growth and high P/E ratios. In addition, the Nifty 50 stocks were credited with propelling the bull market of the early 1970s.

Due to their marked stability, Nifty 50 stocks were viewed as "one-decision" picks because investors were told to buy and hold them forever. In February 2008, Wall Street giant UBS devised the New Nifty 50, an expanded version of the list, which now includes international companies like Toyota, Samsung, Nokia and Swatch. The inclusion of international companies on the New Nifty 50 allows investors to take advantage of the solid returns and stability of companies in the UK, Japan and some European countries.

(For more on this topic, read Ten Tips for the Successful Long-Term Investor.)

This question was answered by Steven Merkel.

  1. How do you compare Dow Jones Industrial Average (DJIA) and Nifty?

    Compare the Dow Jones Industrial Average with the S&P CNX Nifty 50 to see how each represents the broad market in the United ... Read Answer >>
  2. What is the average price-to-earnings ratio in the chemicals sector?

    Learn about the average price-to-earnings ratio among chemical companies, which industries house large chemical companies ... Read Answer >>
  3. Stocks with high P/E ratios can be overpriced. Is a stock with a lower P/E always ...

    The short answer? No. The long answer? It depends.The price-to-earnings ratio (P/E ratio) is calculated as a stock's current ... Read Answer >>
  4. What are the most common market indicators to follow the Indian stock market and ...

    Learn about the most common market indicators used to follow the Indian stock market, including its two major exchanges: ... Read Answer >>
  5. What does the forward p/e indicate about a company?

    Explore the forward price to earnings ratio and learn its significance and how it compares to the traditional price to earnings ... Read Answer >>
Related Articles
  1. Investing

    An Introduction To The Indian Stock Market

    Most trading in the Indian stock market occurs through its two exchanges – the Bombay Stock Exchange and the National Stock Exchange.
  2. Trading

    Traders May Want To Wait To Buy Into India

    India is one of the most lucrative markets for long-term investments, but this might not be the time to jump in.
  3. Managing Wealth

    Why Blue Chip Stocks Are Key to Buy-and Hold Investing

    Several blue chip stocks have proven that buy-and-hold investing still works, even after the huge declines of the Great Recession.
  4. Insights

    Walt Disney: How Entertainment Became An Empire

    One of the most powerful companies in the entertainment sector has some lessons to share for new budding entrepreneurs.
  5. Investing

    World Equities Down on Fed Rate Hike Fears

    Equity markets around the globe are posting losses Monday morning after Friday's mixed U.S. jobs report sparked fears of another rate hike by the Federal Reserve.
  6. Investing

    Dow Chemical Stock Upgraded at UBS (DOW, DD)

    It's not yet time to press the sell button on shares of Dow Chemical, according to analysts at UBS.
  7. Investing

    Disney's 4 Key Financial Ratios (DIS)

    Learn about the financial ratios that are important in understanding Walt Disney Company; analyze the company's past performance and evaluate its new business developments.
  8. Investing

    If You Had Invested Right After Disney's IPO

    Discover how the Walt Disney Company has been entertaining people and taking care of its shareholders since debuting on the NYSE in 1957.
  9. Investing

    Assessing Disney's Stock Valuation (DIS)

    Can shares of Disney regain their magic? This question, among others, weigh on the minds of many investors.
  10. Investing

    Is Stock With a Lower P/E Always A Better Choice?

    Is a stock with a lower P/E always a better investment than a stock with a higher one? The short answer is no, but it depends on a few things.
  1. Nifty 50

    The 50 stocks that were most favored by institutional investors ...
  2. Standard And Poor's CNX Nifty

    A stock index endorsed by Standard & Poor's and composed of 5 ...
  3. Market Average

    A measure of the overall price level of a given market, as defined ...
  4. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing ...
  5. Rule Of 18

    A rule whereby the sum of the inflation rate and the P/E ratio ...
  6. Equity Market

    The market in which shares are issued and traded, either through ...
Hot Definitions
  1. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  2. Federal Debt

    The total amount of money that the United States federal government owes to creditors. The government's creditors include ...
  3. Passive Management

    A style of management associated with mutual and exchange-traded funds (ETF) where a fund's portfolio mirrors a market index. ...
  4. Series 7

    A general securities registered representative license administered by the Financial Industry Regulatory Authority (FINRA) ...
  5. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  6. Expatriation Tax

    An expatriation tax is a tax on someone who renounces their citizenship. In the United States, the expatriation tax provisions ...
Trading Center