What is Nifty , what is Sensex , What is Index , What is BSE , NSE
WHAT IS NIFTY & SENSEX
Nifty is a leading index for large companies on the National Stock Exchange of India. The Nifty is a well diversified
50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund
portfolios, index based derivatives and index funds.
Sensex is a value-weighted index composed of 30 stocks started in April, 1984. It consists of the 30 largest and most
actively traded stocks , representative of various sectors , on the Bombay Stock Exchange. These companies account for
around one-fifth of the market capitalization of the BSE.
The base value of the sensex is 100 on April 1, 1979, and the base year of BSE-SENSEX is 1978-79.
WHAT IS INDEX
Index is a method of measuring a section of the stock market E.g Metal Index represents metals, Real Estate Index
represents Real Estate Sector etc. Many indices are cited by news or financial services firms and are used to benchmark
the performance of portfolios such as mutual funds. So Index is just like a indicator which gives us an idea of market
direction.
So the SENSEX & NIFTY can also be represents as an indicator (an indicator of Indian Stock market).
Atlast, if Sensex & Nifty moves up , major shares of Sensex & Nifty moves up and if Sensex & Nifty drag down , major
shares of Sensex & Nifty drags downwards.
WHAT IS BSE & NSE
There is a Stock Exchange in Bombay just like other, that’s why this stock exchange is known as Bombay Stock Exchange.
Similarly NSE is known as National Stock Exchange as it is situated in Delhi (It is also known by Delhi Stock Exchange).
These are the major stock exchanges in the India.
In India many Stock Exchanges are there like Gujarat Stock Exchange, Calcutta Stock Exchange etc.
