What If Nifty touches 90000 by 2030, how will it affect the stock prices?
Introduction
What If Nifty touches 90000 by 2030, how will it affect the stock prices? I think this question was good in the sense that you asked for a deeper understanding of how Nifty is and how it affects stock prices?
The Nifty is a good representation of the Indian economy. It is probably the most watched indicator of the economy.
The Nifty is a market capitalization-weighted index, which means that it measures the performance of stocks in terms of their market capitalization rather than value. The index tracks the performance of both large and small-cap companies based on their price movements between 1 January 1990 and 31 December 2017 (i.e., before demonetization).
It is probably the most watched indicator of the Indian economy as it reflects how much India has grown per year over a period of time. It also helps investors gauge what may happen in future due to various factors like inflation rate, interest rates etcetera
As you rightly pointed out the Nifty represents the top 50 companies and they are supposed to be good barometers of the economy.
You rightly pointed out that Nifty represents the top 50 companies and they are supposed to be good barometers of the economy.
As you rightly pointed out the Nifty represents the top 50 companies and they are supposed to be good barometers of the economy.
Nifty is a market capitalization-weighted index, which means that it captures the overall sentiments of investors globally. In fact, over half of its weightage comes from largecaps, which makes sense given their importance in determining stock prices across various markets globally (e.g., India). However, this does not mean that smaller caps aren’t important because they too have their own share on how stocks perform over time; just look at your portfolio!
First thing one should understand before answering this question is that Nifty is not a real entity but an index, which is basically a market capitalization-weighted index.
In order to answer the question, one must first understand that Nifty is not a real entity but an index, which is basically a market capitalization weighted index. So, even if you buy 100 stocks in Nifty and they all fall simultaneously by 15%, your portfolio will still be up 10%. This means if you own an S&P 500 stock as well as some other blue-chip companies like Adani Ports & Special Economic Zone Ltd., etc., then even if these stocks fall by 15% (which may happen), your portfolio would still have increased by 10% due to diversification benefits of having multiple assets under management (AUM).
On top of this point: If we look at how much people invest in mutual funds every year and how much money goes into equity markets every year through equities instruments such as mutual funds or EPF deposits – then India’s GDP growth rate should be around 7% over next 5 years based on current trends alone without any external shocks coming our way!
Different stocks in the NIFTY 50
Different stocks have different weightages in Nifty 50 based on the size of their market capitalization.
Nifty 50 is a market capitalization-weighted index. This means that the weightages of stocks in Nifty 50 are based on their market capitalization (the total value of all shares outstanding).
The weightages change based on various factors like performance and policy changes.
If nifty touches 90000+
When you say if nifty touches 90000+ how does it affect the stock prices, it doesn’t mean that all stocks will necessarily move up but in weightages assigned to stocks changes due to factors such as company performance, policy changes etc.
When you say if nifty touches 90000+ how does it affect the stock prices, it doesn’t mean that all stocks will necessarily move up but in weightages assigned to stocks changes due to factors such as company performance, policy changes etc.
The stock prices are the basic building blocks of indices like Nifty and sensex which are calculated by taking into account all listed companies having a market capitalization of Rs 100 crore or more with respect to their shares outstanding at any given point in time. These indices track performance of various asset classes such as bonds (government securities), equities (stocks) and commodities such as gold, oil etc., over time using historical data collected from public sources like newspapers or databases maintained by financial institutions like central banks etc.,
The other thing with Nifty as an index, is that it also captures the overall sentiments of investors globally which fluctuates on daily basis sometimes even hourly basis which makes Nifty and other indices very volatile i.e. they move up or down drastically within a very short period of time (days or even hours).
As an index, Nifty is a reflection of the market sentiment globally. It captures the overall sentiments of investors globally which fluctuates on daily basis sometimes even hourly basis which makes Nifty and other indices very volatile i.e. they move up or down drastically within a very short period of time (days or even hours).
So when investors see that their stocks are moving up in value and thus feel happy about them, then there will be more demand for these stocks thus boosting their prices higher than before making them attractive for buyers as well as sellers who have been sitting on this stock for sometime but now need money urgently to fulfil some financial needs such as home loan repayments etc..
All these things affect stock prices and these stock prices are the basic building blocks of indices like Nifty and sensex.
Nifty is not a real entity but an index. It captures the overall sentiments of investors globally and hence represents India as well. Nifty is a good representation of the Indian economy as it captures all major sectors like banking, automobile manufacturing, cement, metal products etc., which are important to understand when you buy stocks or funds in India or across countries.
Nifty is also known for being volatile because it weighs stocks based on their market capitalization rather than price-to-book value ratio (or P/BV). A company with more shares outstanding will have higher weightage in determining Nifty’s returns than one who has limited number of shares outstanding – this means that if you want your portfolio to grow faster than what happens during any given year then investing money into larger cap companies would be better for long term goals!
Conclusion
I believe that the stock prices would not be affected much as of now. The Nifty has been growing at a very fast pace for years now and it is difficult to imagine any scenario where it will come down drastically or even see any correction in the next few years.
Also,Read – Why is share market falling?
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