I need to know how does the falling of points in nifty affects share value of a company?

Question

basically i'm new to share market

Answer 1

Nifty is a weighted average of 50 companies. If Nifty goes down, it doesn't necessarily mean the value of any particular company has gone down.

Theoretically it is the other way round - the fall in the share prices of these fifty companies may bring down Nifty.

But practically speaking, falling of Nifty (specially if it is a big fall) effects the sentiments of the market and that may effect the share prices of the companies in general - even those outside of Nifty Fifty.