What is Sensex?
What is Nifty ?
Difference between these two
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Answer Posted / sumit verma
SENSEX and NIFTY are indices of major Stock Market of INDIA
i.e.The Bombay Stock Exchange and The National Stock
Exchange respectively.
1 SENSEX....derived its name from SENSitive indEX. This
index comprises of Top 30 Stock traded in The Bombay Stock
Exchange(BSE) comprising all major sectors such as IT,
Cement,Oil and Natural Gas, Bank,Auto,e.t.c. Its a
cumulative index. Remember it is just 30 stock index. Those
30 stock are dynamic in nature and keeps on changing.
2. NIFTY.....derived its name from the National Stock
Exchange(NSE)and f IFTY. Just because NSE uses 50 major
stock across all major sectors to constitute an Index called
NIFTY. The major difference between two indices that the
later uses 50 stocks as compared to 30 stocks used for Sensex.
Note:- Both these indices are the barometer of the stock
exchange, which shows that how that market is faring. In
absence of such indices it is impossible to gauge the mood
of the market OR to measure the performance of the Market.
Apart from these two indices there are several Sectoral
indices constituted by the two exchanges to measure the
performance of that particular sector in the stock Market
such as BANKEX, NIFTY IT , MIDCAP NIFTY, e.t.c
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