Dif­fer­ence between Sen­sex and Nifty

Basi­cally these are indexes which act as barom­e­ters of the stock mar­ket. In a nut shell, it tells about the per­for­mance of major­ity of traded stocks.

 

Dif­fer­ence between Sen­sex and Nifty

In India there are two major stock exchanges, Bom­bay Stock Exchange ( BSE) and National Stock Exchange ( NSE).

The index of the BSE is called as Sen­sex and the index of NSE is called as Nifty. The dif­fer­ence between BSE and NSE is they both are dif­fer­ent stock exchanges.

1) Sen­sex – It is pop­u­larly cal­led as BSE Sen­sex or BSE Sen­si­tive Index. It is India's Oldest Stock Exchange with listing of over 4000 scripts with it. This not fully automated yet but progress towards full automation is underway. SENSEX is major index of BSE and it comprise of 30 of the largest and most actively-traded stocks on the BSE.

2) Nifty – It is popularly called as NSE Nifty. It has more than 2000 stocks from different sectors listed with it. It is fully automated electronic order processing exchange. Nifty is major index of NSE and it comprises of 50 scripts from different sectors.

The 30 stocks that are included in the Sen­sex, pro­vide a sam­ple of the entire mar­ket. To elab­o­rate, the 30 stocks that are included are a sam­ple. It rep­re­sents the total effect of all the stocks that are listed in the BSE.

Sim­i­larly, Nifty is the rep­re­sen­ta­tion of all the stocks listed in the NSE. It com­prises of 50 shares.

The dif­fer­ence between Sen­sex and Nifty is they are dif­fer­ent indexes which mea­sure the per­for­mance of the stock market.

 

Sen­sex & Nifty has gone up — What does that mean

Often one comes across the news — Sen­sex has gone up by 100 points and Nifty has gone up by 50 points. This basi­cally means on an aver­age the 30 shares in BSE and 50 Shares in NSE have per­formed well. Indi­vid­ual stock prices should have increased and decreased. But major­ity of the stock prices in the list of 30 for BSE and 50 for NSE have increased.

 

Sen­sex & Nifty has gone down — What does that mean

Sim­i­larly another news — Sen­sex has gone down by 60 points and Nifty has gone down by 30 points, basi­cally means on an aver­age the 30 shares and 50 Shares have per­formed neg­a­tively.  Indi­vid­ual stock prices should have decreased and increased. But major­ity of the stock prices in the list of 30 for BSE and 50 for NSE have decreased.

 

Other Indexes

Apart from these indexes, there are many other indexes which are used to gauge the per­for­mance of var­i­ous indus­try stocks. For exam­ple – BSE IT or BSE Bankex shows how the IT com­pa­nies and banks listed in BSE performed.

There are other stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE. Most of the stock trading in the country is done though the BSE & the NSE.

All these stocks in these indexes are selected through a mech­a­nism and cer­tain cri­te­ria. So, Sen­sex and Nifty are no longer a mys­tery now!

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