All About Sensex & Nifty?

 Sensex and Nifty are two popular indices of the Indian stock market that track the performance of different stocks listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), respectively.


Sensex:


The Sensex, also known as the S&P BSE Sensex, is a benchmark index of the BSE that comprises the top 30 companies by market capitalization. The Sensex was launched in 1986 and is one of the oldest and most widely followed indices in India. It represents the performance of large-cap companies across different sectors, including financial services, healthcare, energy, and information technology.


Nifty:


The Nifty 50, also known as the NSE Nifty, is a benchmark index of the NSE that comprises the top 50 companies by market capitalization. The Nifty was launched in 1996 and has become one of the most popular indices in India. It represents the performance of large-cap companies across different sectors, including financial services, IT, healthcare, and consumer goods.


Differences between Sensex and Nifty:


Number of companies: Sensex comprises 30 companies, while Nifty comprises 50 companies.


Calculation methodology: Sensex is calculated based on the free-float market capitalization of its constituent companies, while Nifty is calculated based on the float-adjusted market capitalization.


Sector representation: Sensex has a higher representation of industrial and financial companies, while Nifty has a higher representation of IT and consumer goods companies.


Both Sensex and Nifty are used as a barometer of the Indian stock market's overall health and are widely followed by investors and traders. Investors can use these indices to track the performance of the market and make informed investment decisions.

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