7 Difference between Nifty and Sensex

Nifty and Sensex are the indexes of NSE and BSE. Nifty and Sensex are always announced together if we hear news on TV every time both nifty and Sensex is announced. Index is the overall performance of the stock market. Index shows the economic trends of the country. It is impossible to measure or check all the companies one by one in that case index is used.

These days the stock market is very famous among people. Everyone is aware of the stock market, everyone wants to invest in the stock market. So, it’s very important to understand the concept of nifty and the stock market. In this article we discuss what is index, what are nifty and Sensex and differences between nifty and Sensex.

Index

        Index is the overall performance of the stock market. Index shows the economic trends of the country. It is impossible to measure or check all the companies one by one in that case index is used. Index makes a list of the top 30 to 50 companies. It depends on the performance of these 30 to 50 companies. Index shows the ups and downs in the points. When the performance of these top companies goes down, the index also goes down and vice versa. Down is indicated by red color numbers while up is indicated by the blue color

Nifty vs Sensex

Sr. No.	Nifty	Sensex
1	Tracks the top and we’ll organize 50 companies	Tracks the 30 top Companies.
2	1700+ companies listed	5500+ companies listed
3	Base year is 1995-1996	Base year is 1978-1979.
4	Base number is 1000	Base number is 100
5	NSE is the operator	BSE is the operator
6	Also known as C&P.	Also known as S&P.
7	Market capitalization factor is free float.	Market capitalization weight factor.

Nifty

Nifty also known as NIFTY 50. It is the index of National stock exchange NSE. NSE was introduced in 1996. NSE tracks 50 top companies from the total 1600 companies which are actively traded in NSE. 24 sectors are registered in the NSE. These top 50 companies account 65% of the total free float market of the total index. Nifty shows the performance of these 50 companies.

Calculation of nifty

It is calculated by the free float market capitalization weight methodology. It represents the total market value. Nifty base period is 3rd Nov. 1995.

Index value = (current market value/Base market capital) X 1000

Base market capital = 2.06 trillion.

What is Sensex

Bombay stock exchange’s index is Sensex. It is also known as the S & P BSE exchange. Sensex tracks 30 companies’ performance. Sensex is older than the nifty. It was established in 1986. It covers the 13 industrial sectors. When the points shown in the green color it indicates that Sensex goes up from yesterday’s closing value. While the Points shows in red color it indicates that the index is going down from yesterday’s closing point. It is also known as BSE 30

Mani difference between Nifty and Sensex

1. Nifty tracks the top and we’ll organize 50 companies. Sensex tracks the 30 top stocks.
2. There are 5500+ companies listed in the Sensex. while 1700+ companies listed in the nifty.
3. Nifty base year is 1995-1996. Sensex’s base year is 1978-1979.
4. Sensex base number is 100. And the nifty base number is 1000.
5. NSE is the operator of the nifty. And BSE is the operator of the Sensex.
6. Nifty is also known as C&P. Sensex also known as S&P.
7. Sensex’s market capitalization factor is free float. While in case of nifty its weight factor.

Conclusion

Nifty and Sensex are the indexes of NSE and BSE stock exchange. Simply Nifty shows the top 50 companies’ performance per day bases. Sensex shows the performance and fluctuations of the top 30 companies which are listed with BSE. Overall both the indexes indicate the fluctuations in the economy of the country.

This is all about the difference between Nifty and Sensex. We hope you understand the topic very well. For more interesting topics like this please go through our website.