Sensex and Nifty are two important metrics that stock marketers use to determine the overall performance trend of the Indian stock market. Both Sensex and Nifty are stock market indices that summarize the movements of the market in real-time. A stock market index is created by grouping together similar kinds of stock. Sensex, which stands for Stock Exchange Sensitive Index, is the stock market index for the Bombay Stock Exchange (BSE), while Nifty stands for National Stock Exchange Fifty and is the index for the National Stock Exchange (NSE) . The main differences between Sensex and Nifty are:
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Number of companies: Sensex considers 30 companies, while Nifty considers 50 companies for index purposes.
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Sectors covered: Nifty has extensive exposure to 24 sectors, while Sensex covers 13 major sectors.
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Ownership: NSE subsidiary, Index and Services and Products Limited (IISL), owns and manages Nifty, while BSE solely owns and manages Sensex.
Both Sensex and Nifty are considered to be a measure of Indias stock market performance and a reflection of the Indian economy. They are used as a benchmark to gauge growth and development in the Indian economy and industry and understand the stock market trend. Investors can use them as a basis to measure portfolio performance and compare the performance of other indices and stocks.