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What Is Sensex? What Is Nifty?

The Sensex and Nifty are “indexes”, index is basically an indicator which captures the price movement of shares. The full form of Sensex is Sensitive Index and of NIFTY National Fifty. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down.

BSE (Bombay Stock Exchange) Index Or Sensex

The BSE is the oldest stock exchange in India. It is situated in Dalal Street in Mumbai. BSE offers a single place where traders from across the world can buy/sell shares in the Indian share market. The Sensex is an indicator of all the major companies of the BSE. It consists of the 30 largest and most actively traded stocks, represents 13 sectors of the economy such as IT, Cement,Oil and Natural Gas, Bank,Auto,e.t.c., on the Bombay Stock Exchange.


NSE (National Stock Exchange) Index Or Nifty (officially called S&P CNX Nifty)

The word Nifty is a combination of two words namely the “N” from national and “ifty” from fifty.The NSE is India’s largest and the worlds third largest stock exchange in terms of transaction volumes and amounts. The NSE is based in Mumbai. It is the index of the performance of the 50 largest & most profitable, popular companies listed in the index.

Difference Between Sensex And Nifty

  • Sensex is the Bombay Stock Exchange sensitive Index and Nifty is the National Stock Exchange Index
  • Sensex comprises traded stock of 30 companies whereas Nifty comprises traded stock of 50 companies.
  • Nifty is more broad-based than Sensex, as the former consists of more listed companies.
  • Nifty is a combination of ‘N’, meaning national, and ‘ifty’, meaning fifty. On the other hand, Sensex refers to the sensitivity index of the BSE.

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