Understanding the Difference between Nifty and Sensex

1. Understanding the Difference between Nifty and Sensex ******************************************************************************** When it comes to the Indian stock market, there are two names that you will often come across: Sensex and Nifty. The Sensex or Sensitive Index includes 30 of the most influential stocks listed on the Bombay Stock Exchange (BSE), serving as the standard of India’s top-performing blue-chip companies. On the other hand, the Nifty 50, from the National Stock Exchange (NSE), includes 50 companies from different sectors, giving a wider view of how the overall market is performing. However, suppose you are a beginner looking to start investing in the Sensex and Nifty. In that case, it is highly recommended to first understand the basics by enrolling in an online course on stock market trading. What is Sensex? Sensex is a key benchmark index that monitors the performance of 30 major large-cap companies listed on the Bombay Stock Exchange (BSE), offering valuable insights into market trends and investor confidence in the Indian stock market. So, how is Sensex calculated? The answer to this question is not that simple. That’s because the Sensex is calculated using the free-float market capitalisation method. This means it considers not only the company’s total share value but focuses specifically on the shares available for public trading. Each stock in the Sensex is like a puzzle, sized by its market value. The index changes constantly to reflect real-time market trends. When the Sensex rises, it signals investor confidence and strong market momentum. And when it falls, it leads to caution and reduced trading activity. www.bullspree.com

2. What is Nifty? Nifty, short for National Stock Exchange Fifty, is another major benchmark index in the Indian stock market. Unlike the Sensex, which tracks 30 large-cap stocks on the Bombay Stock Exchange, the Nifty includes 50 stocks listed on the National Stock Exchange. So, how is Nifty calculated? Similar to the Sensex, Nifty is also calculated using the free-float market capitalisation method. The Nifty 50 reflects only the tradable portion of a company’s market value, adjusting for events like stock splits or mergers. This helps it effectively reflect market trends and act as a primary benchmark for index funds, ETFs, and other investment vehicles. Which Should You Invest in? Well, both Sensex and Nifty are reliable indicators of the Indian stock market, but the choice depends on your investment goals. However, to gain a deeper understanding of Nifty, Sensex, and other stock market terms, we recommend enrolling in stock market classes in Hindi. Conclusion Ultimately, these are the main differences between Sensex and Nifty. However, if you are new to stock trading, it’s strongly advised to first enrol in thebest stock trading course for beginners before investing. Source: Understanding the Difference between Nifty and Sensex www.bullspree.com