Answer / p.n.varma

sensex is the index of BSE,it has 30 listed companies,and
Nifty is the index of NSE,it has 50 listed companies.
------->P.N.VARMA 9440001155
varmapnvarma@aol.com

Answer / ashwin mundada

sensex is the indicator for BSE.(30 companies)
nifty is the indicator for NSE.(50 companies).
first BSE came into existance later NSE came into
picture of stock market.There are nearly 23 stock exchange
among which BSE&NSE play a vital role in the stock
exchange.

Answer / geetha

sensex and nifty both are index. sensex comprise 30 top
listed companies and nifty comprise 50 top companies.
sensex is an index of bombay stock exchange and nifty is an
index of national stock exchange............

Answer / jyothsna

Everyone has heard of the Sensex. Most of us know it is the
index of the Bombay Stock Exchange. But there are lots of
facts you are probably unware of. Here are six interesting
facts about the Sensex.

1. The Sensex is an abbreviated version of The Bombay Stock
Exchange Sensitive Index.
It is the benchmark index for the Indian stock market,
closely followed by Nifty, which is the index of the
National Stock Exchange. Officially called S&P CNX Nifty,
this name is credited to the 50 stocks that comprise its index.

2. The Sensex is made up of only 30 stocks.
These stocks represent around a dozen sectors. They are
leaders in their respective industries.

3. The stocks are picked by the stock selection committee
(known as the Index Committee).
There are certain basic parameters fixed when picking these
30 stocks. They are:

~ The stock should have been traded on each and every
trading day (the days on which the stock market works) for
the past one year.

~ It should be among the top 150 companies listed by average
number of trades (buying or selling of shares) and the
average value of the trades (in actual rupee terms) per day
over the past one year.

~ The stock should have been listed on the BSE for at least
one year.

4. The job of the Sensex is to capture the price movement of
the equity market.
The Sensex reflects the price movements of shares. If the
Sensex rises, it indicates the market is doing well.

The price of every stock price rises or falls for two
possible reasons:

News about the company, Great earnings, great annual or
quarterly results, product launch, closure of a factory, the
government providing tax or duty exemptions to the sector so
more profits expected, a feud among the company's top
bosses, etc. This will be stock specific news.

News about the country Testing a nuclear bomb, a terrorist
attack, the Budget announcement, new tax regime, declaration
of war, change of government, good monsoons and hence a good
agricultural crop, etc. This will be called index news.

The job of an index is mainly to capture the news about the
country. This will reflect the movement of the stock market
as a whole. It could also reflect the sentiment of the
market as a whole. If corporate India is largely doing well,
then it will get reflected here.

A good index will only capture news that is common to all
stocks in India. This is what the Sensex does. In order to
present a broad picture, the stocks selected are from
different sectors.

5. The value of each of the stocks in the Sensex is not equal.
The market cap method Each of the 30 stocks in the Sensex
has a weight attached to it. This weight depends on the
market capitalization of the stock.

Market capitalization refers to the number of shares of a
company multiplied by its market value (the price of each
share). For instance, if a company has 10 million shares
whose value is Rs 30 per share on July 1, 2006, it will have
a market cap of Rs 300 million on July 1, 2004.

Let's assume the market cap of the 30 Sensex stocks is Rs
3,00,000 crore. Let us also assume the market cap of ITC
(which is one of the 30 shares that make up the Sensex) is
Rs 20,000 crore, then ITC's weight in the Sensex is 6.66%.


The rise or fall in the price of ITC's shares will impact
the Sensex to that extent.
This is referred to as the full market capitalization
methodology.

Free-float weight age Here, a company's entire lot of shares
are not taken into account (which means we are not looking
at the entire market capitalization) . Only the shares
readily available for trading are considered.

In every company, a certain amount of shares are not
available for trading on the stock exchange. These shares
could be held by the government or the promoters of the
company. Under the free-float weightage method, they are not
taken into account.

How does the stock exchange arrive at this weightage? In
this case, the market cap is multiplied by the free float
factor (which is the proportion of a company's shares that
can be readily bought and sold).

The Sensex uses the free-float weightage method.

The Sensex's free-float market cap at close of business on
December 3, 2005, was Rs 3,66,124 crore.

Unlike the Sensex, the 50 stocks in Nifty -- the index of
the National Stock Exchange -- is based on the market cap
method and not the free-float method.

You can read about the free-float method in detail on the
BSE web site.

6. The clincher
Even though the BSE came into existence in 1875, the Sensex
was formulated and came into existence only in 1986.


" The S&P CNX Nifty, or simply Nifty, is the leading index
for large companies
on the National Stock Exchange of India. It consists of 50
companies
representing 24 sectors of the economy, and representing
approximately 47% of
the traded value of all stocks on the National Stock
Exchange of India. "

Answer / anuj kumar

Ofcourse Sensex & Nifty are two different indexes. An index
is like a indicator which decides , how much will the stocks
go up or go down.
Sensex comes under BSE index comprises of 30 stocks of the
renowned companies while Nifty comes under NSE index comprises
of 50 stocks.

Answer / tarun chatterjee

Sensex is an index which indicates BSE and Nifty is another
index that indicator or NSE.

Answer / kavindra an mba from ssitm

sensex is -index of BSE(bombay stock exchange)
which is listed 30 diffrent sectors.

nifty is - national fifty index of NSE (national stock
exchange)which is listed 50 sectors.

the basic diff. in sensex & nifty are ,
1)sensex show the market index of 30 diffrent sector ,which
listed in BSE.
nifty show the market index of 50 diffrent sector ,which
is listed in NSE.

2)sensex is index of BSE.
nifty is index of NSE.

Answer / ravichand matangi

sensex-Bombay Stock Exchange-BSE(Index of top 30
companies),NIFTY-National Stock Exchange(Index of top 50
companies)-NSE

Answer / vipin rajak

1) SENSEX: SENSITIVITY INDEX Sensex is nothing but index of
BSE.
It has got 30 listed companies. On the other hand,
2) NIFTY: NATIONAL FIFTY and it is nothing but the index of
NSE.

Answer / preeti

sensex is the index of BSE. bse means stock exchange of
india.
in this 30 companies are listed.
nifty is the index of NSE. NSE means national stock
exchange.
in this 50 componies are listed.

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