The Sensex and Nifty are both stock market indices in India, but they differ in terms of their composition, calculation, and the exchanges they represent.
Sensex: Stands for Sensitive Index. It is the benchmark index of the Bombay Stock Exchange (BSE), which is the oldest stock exchange in Asia.
Nifty: Stands for National Fifty. It is the benchmark index of the National Stock Exchange (NSE), which is the largest stock exchange in India by trading volume.
2. Number of Companies
Sensex: Tracks the performance of 30 large, well-established, and financially sound companies listed on the BSE.
Nifty: Tracks the performance of 50 large-cap companies listed on the NSE.
3. Base Year and Base Value
Sensex: The base year is 1978-79, and the base value is 100.
Nifty: The base year is 1995, and the base value is 1000.
4. Calculating Method
Sensex: It is calculated using the free-float market capitalization-weighted method. This means it considers only the shares available for trading (free-float) and not the promoter-held shares.
Nifty: It also uses the free-float market capitalization-weighted method, but it covers a broader range of companies (50 instead of 30).
5. Number of sectors covered
Sensex: It covers 13 sectors.
Nifty: Nifty is a broader market index that covers 24 sectors.
6. Owned by
Sensex: It is owned by the Bombay Stock Exchange (BSE).
Nifty: It is both owned and managed by Index and Services and Products Limited (IISL), an NSE subsidiary.