Difference Between Sensex and Nifty
The S&P BSE SENSEX (also known as the BSE 30 or simply the SENSEX) is a stock market index of the Bombay Stock Exchange (BSE). It consists of the 30 largest and most actively traded stocks listed on the BSE. It is designed to gauge the overall performance of the stock market in India.
The Nifty 50 is a stock market index of the National Stock Exchange of India (NSE). It consists of the 50 most highly capitalized and actively traded stocks listed on the NSE. It is designed to measure the performance of the broad Indian stock market. The Nifty, also known as the NSE 50, is an index of the National Stock Exchange (NSE) and consists of 50 major companies listed on the NSE.
In summary, the SENSEX consists of 30 stocks and the Nifty 50 consists of 50 stocks, and they are both stock market indices that measure the performance of the stock market in India.
Both the Sensex and Nifty are widely followed by investors, analysts, and the media as indicators of the overall performance of the Indian stock market. However, there are some key differences between the two indices:
Composition: The Sensex consists of 30 companies, while the Nifty consists of 50 companies.
Calculations: The Sensex is calculated using free float market capitalization weighted methodology, while the Nifty is calculated using full market capitalization weighted methodology.
Companies: The Sensex and Nifty include different companies, although there is some overlap. The Sensex includes companies from a variety of sectors, while the Nifty includes companies from a wider range of sectors, including financial services, healthcare, and technology.