What is Sensex and Nifty ? Difference between these two ?
What is Sensexx and Nifty ? Difference between these two ?
- Full Form of Sensex is Sensitive Index. People are happy when the Sensex goes up and upset when it goes down. Sensex is the stock market index of the Bombay Stock Exchange or BSE - it is also called BSE Sensex.
- National Stock Exchange (NSE) is the leading stock exchange of India. Full form of NIFTY is “National Stock Exchange Fifty” - it is the broad index of NSE.
- NIFTY normally comprises of 50 stocks but right now there are 51 stocks. It is known as NIFTY 50 or CNX Nifty. It is owned and managed by India Index Services and Products Ltd. (IISL).
- As such, there is no difference between Sensex and Nifty because both target large cap stocks. There’s no difference in the performance - you can see that in 20 years chart.
- NIFTY and Sensex are stock market indices that indicate the strength of the market. The NIFTY reflects the value of NSE and Sensex is the stock market index for BSE.
- But if you still looking for a difference between Sensex and Nifty - NIFTY is broader based as it has more listed securities (50 stocks) compared to Sensex (30 Stocks)
- NIFTY is considered to have a more diversified portfolio than Sensex. More trading happens in NSE as compared to in BSE.