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.
Related Articles
What is the difference between active and passive investing?
Feature Active Investing Passive Investing 1. Meaning Trying to beat the market by picking specific stocks or funds Tracking the market by investing in an index (like Nifty 50 or Sensex) 2. Who manages it? Fund manager or investor actively makes ...
What is the difference between ETFs and mutual funds?
In the Indian markets, both Exchange-Traded Funds (ETFs) and Mutual Funds are investment vehicles that pool money from investors to invest in various assets like stocks, bonds, or commodities. However, they have key differences in how they operate: ...
What are some well-known stock market indices (Sensex, Nifty, Dow Jones, etc.)?
A stock market index is a tool that tracks the performance of a specific group of stocks. It helps investors understand the overall market trend without tracking every single stock. If the index goes up, the market is generally doing well; if it goes ...
How does an ETF track an index?
An Exchange-Traded Fund (ETF) is a type of investment fund that aims to replicate the performance of a specific market index, such as the Nifty 50 or Sensex. In India, ETFs are regulated by the Securities and Exchange Board of India (SEBI) and are ...
What is the difference between stocks and shares?
Stocks and shares are terms often used interchangeably, but there’s a subtle difference between them. Stocks: Stocks refer to ownership in a company as a whole. When you buy stocks, you own a part of a company, but it doesn’t specify the exact amount ...