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Answer Posted / fasihuddin
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.
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