NIFTY 50 index - launched in 1996, built using a free-float market capitalization methodology. The method explains as that only shares available for trading are considered. This way it ensures that the index accurately reflects the market movements of the largest companies, and that makes it a crucial tool for investors searching for exposure to the Indian equity market. The companies that form NIFTY 50 span manifold sectors, including financial services, information technology, consumer goods, pharmaceuticals, and more.