Sensex vs Nifty - 10 Differences You Must Know!

Sensex And Nifty Meaning??

Sensex and Nifty represent indices of the leading Indian stock exchanges, NSE and BSE. Let's explore their significance in detail.?

What Is An Index?

An Index measures the stock market's overall performance and represent the country's economic trends. If an index rises, it means that the country's stock market is doing well, indicating a positive economic trend. When it falls, the stock market is thought to be not doing well, indicating a negative economic trend.?

Nifty Meaning

Nifty 50 comprises the 50 largest and most liquid stocks from over 1600 listed on the NSE. These companies are from various sectors, reflecting India’s stock market and economic trends of India.

Sensex Meaning

Sensex monitors 30 large and established companies from over 5700 listed on the BSE, reflecting Indian economic trends and the overall stock market.?

Sensex is internationally traded on Eurex and various leading exchanges of Brazil, Russia, China, and South Africa.

Difference between Nifty and Sensex

• Full Form: Nifty stands for National Fifty, and Sensex stands for Sensitive Index.?

• Established: Nifty was introduced in 1996, while Sensex was established in 1986.

• Former Names: Nifty was formerly known as CNX FIFTY, whereas Sensex was previously called S&P BSE SENSEX.

• Companies Included: Nifty consists of 50 of the largest and most liquid companies, while Sensex comprises 30 of the largest and most actively traded companies.

• Sectors Covered: Nifty covers 24 industrial sectors, whereas Sensex covers 13 industrial sectors.

• Index Calculation: Both Nifty and Sensex use Free Float Market Capitalization for index calculation.

• Base Year and Value: The base year for Nifty is 1978-1979 with a base value of 1000, while for Sensex, it's 1995 with a base value of 100.

• Operator: Nifty is operated by India Index Services and Products (a subsidiary of National Stock Exchange), while Sensex is managed by BSE (Bombay Stock Exchange).

• Volume & Liquidity: Nifty typically has higher volume and liquidity compared to Sensex.

• Website: The website for Nifty is www.nseindia.com, and for Sensex, it's www.bseindia.com.

Ready to start your stock market journey? Open your account today and take the first step towards investing and trading!