In NSE & BSE, we have a long list of listed companies. Nifty 50 is top 50 companies and Sensex is top 30 companies.
50 companies in Nifty 50 and 30 companies in Sensex contribute to the respective index according to their weightage. The stock with the most weightage becomes the main reason behind the rise or fall in the index.
We must select our first stock considering the weightage in the index. Selecting from the top 5 or 10 companies based on their weightage is the better strategy than investing in a weak stock.
50 companies in Nifty 50 and 30 companies in Sensex contribute to the respective index according to their weightage. The stock with the most weightage becomes the main reason behind the rise or fall in the index.
We must select our first stock considering the weightage in the index. Selecting from the top 5 or 10 companies based on their weightage is the better strategy than investing in a weak stock.
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