Answer Posted / jacob jijimon

SENSEX - SENSITIVITY INDEX : NIFTY - NATIONAL FIFTY
An abbreviation of the Bombay Exchange Sensitive Index
(Sensex) - the benchmark index of the Bombay Stock Exchange
(BSE). It is composed of 30 of the largest and most
actively-traded stocks on the BSE. Initially compiled in
1986, the Sensex is the oldest stock index in India.
The Sensex is an "index". What is an index? An index is
basically an indicator. It gives you a general idea about
whether most of the stocks have gone up or most of the
stocks have gone down.
The Sensex is an indicator of all the major companies of
the BSE. The Nifty is an indicator of all the major
companies of the NSE. If the Sensex goes up, it means that
the prices of the stocks of most of the major companies on
the BSE have gone up. If the Sensex goes down, this tells
you that the stock price of most of the major stocks on the
BSE have gone down.
Just like the Sensex represents the top stocks of the BSE,
the Nifty represents the top stocks of the NSE. Just in
case you are confused, the BSE, is the Bombay Stock
Exchange and the NSE is the National Stock Exchange. The
BSE is situated at Bombay and the NSE is situated at Delhi.
These are the major stock exchanges in the country. There
is an index that gives you an idea
about whether the mid-cap stocks go up and down. This is
called the “BSE Mid-cap Index”. There are many other types
of indexes.
Indexes are indicators of the market which gives you a
General idea about whether most of the stocks have gone up
Or down. There are two types of INDEXES:
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.
It has got 50 listed companies

So Let me conclude and remember shortly
sensex could be construd as sensitive index and nifty as
national fifty.... sensex is the index of BSE while NIFTY
is the index of NSE....sensex consists of the 30 largest
and most actively traded stocks, representative of various
sectors, on the Bombay Stock Exchange. These companies
account for around one-fifth of the market capitalization
of the BSE.
whereas nifty consists of 50 stocks

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