What is Sensex and Nifty ?

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Sensex and Nifty : In this article we will discuss about Sensex and Nifty in details, Sensex and Nifty are the major indices of BSE and NSE respectively.

 NSE National Stock Exchange and BSE (Bombay Stock Exchange) are the two major stock exchanges in India.

A stock exchange is a market where shares are traded between a buyer and a seller of shares, both Nifty and Sensex are also indices.

 Sensex is the main coordinate of Bombay Stock Exchange and Nifty is the main coordinate of National Stock Exchange.

What is Sensex and Nifty

 More than 5000 companies are listed on Mumbai Stock Exchange and more than 1600 companies are listed on National Stock Exchange.

To know the condition of the stock market, it is difficult to track all the companies, so indexes have been created.

To know the condition of the stock market in India, there is no need to track all the companies, just by looking at Nifty and Sensex, you can know whether the market is up or down today.

When Sensex and Nifty are in green mark then you can say stock market is up today if Sensex and Nifty are in red mark then you can say that market is down today.

That is, if Nifty and Sensex are in the green mark, then it is above yesterday’s closing value, whereas if Nifty and Sensex are in the red mark, then it means that today they are below the closing value of yesterday.

The word Sensex is made by combining Sensitive and Index, the first 4 letters from Sensitive and the last two letters from the index are taken from the index, 30 best and big companies of different sectors have been included in the Sensex i.e.

The movement of Sensex Shares of these 30 companies. determined on the basis of movement.

Nifty is composed of the words National and Fifty,  fifty because 50 companies are included in Nifty.

These companies are the best and biggest companies of different sectors, which means the movement of Nifty is determined on the basis of the movement of the share price of these 50 companies.

 Nifty which is the main index of NSE is also known as Nifty 50.

Whatever companies are selected in Nifty and Sensex, those companies are the leaders of their respective sectors.

Most of these companies are selected from different sectors, so the performance of Nifty and Sensex is considered to be the performance of the stock market.

There are many more indices of stock exchanges.

There are indices of almost all sectors on NSE and BSE.

Indices of any sector include the big and best companies of that sector.

 For example, if you want to know the condition of the banking sector, then you can find out the condition of the banking sector by looking at the performance of Bank Nifty on NSE and BSE.

There are also indices of midcap and smallcap companies on the stock exchange such as S&P BSE Small cap and S&P BSE Mid cap, NIFTY Mid Cap Fifty etc.

where you can know the condition of midcap and small cap.

If a stock continues to perform poorly in Nifty and Sensex, then it is removed and replaced by a good stock and this decision is taken by the exchange itself.

In this article, we have tried to give detailed information about Nifty and Sensex and both stock exchanges BSE and NSE, how did you like this article? Do write your valuable thoughts in the comment section below, thank you.

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