Sensex and Nifty
Sensex stands for Sensitive Index and NIFTY for National Fifty. It is an abbreviation of the Bombay Exchange Sensitive Index (Sensex) - the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively traded stocks on the BSE. Initially compiled in 1986, the Sensex is the oldest stock index in India. An index is basically an indicator. It gives a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE. If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down. Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE. SENSEX: SENSITIVITY INDEX Sensex is nothing but index of BSE. It has got 30 listed companies. On the other hand, NIFTY: NATIONAL FIFTY and it is nothing but the index of NSE. It has got 50 listed companies
