DEFINITION of 'Standard And Poor's CNX Nifty'
A stock index endorsed by Standard & Poor's and composed of 50 of the largest and most liquid stocks found on the National Stock Exchange (NSE) of India. It is commonly used to represent the market for benchmarking Indian investments. Similar to other major stock indexes like the S&P 500, companies must meet certain requirements in terms of market capitalization and liquidity before they can be considered for inclusion in the index.
Also known as "Nifty 50".
BREAKING DOWN 'Standard And Poor's CNX Nifty'
CNX stands for the Credit Rating Information Services of India Limited (CRISIL) and the National Stock Exchange of India (NSE). These two bodies own and manage the index within a joint venture called the India Index Services and Products Ltd. (IISL). Without the additional abbreviation to S&P CNX, the index name would be S&P CRISIL NSE Index.
As of July 2007, the stocks in the S&P CNX Nifty represented well over 50% of the total market capitalization of all stocks in India's stock exchanges.