Hello friends, Pinki Yadav welcomes you in today’s article. Today I am going to give you complete information about SENSEX v/s NIFTY through this post. So let’s start …
What is the difference between Nifty and Sensex?
In India, the Sensex and Nifty are important stock indexes, which determine or depict the strength of their stock market. For equities, the SENSEX has a very old market index, and it also includes shares of the top 30 companies of the Bombay Stock Exchange May listing, Which represent about 45% of the index’s free-float market capitalist. On the other hand, 50 national stock exchanges may include listed companies from Nifty Top, Generally representing four more 62 indices of free-float market capitalization.
What is Sensex?
The SENSEX is the stock market index in Mumbai. The full form of the settlement is the Bombay Stock Exchange. While the SENSEX-sensitive index is made up of index. Sensitive index means sensory index. The SENSEX registers only the 30 largest companies by Mumbai market share and market cap. With the decrease or increase of SENSEX, it shows that those who are big companies in the country are getting profit or loss.
SENSEX started on 1 January 1986. Of this, the 30 friends who have joined, it keeps changing, it has also been made a shortcut to select 30 companies. Due to indexing 30 companies, it is also known as BSE 30.
What is Nifty?
Nifty is a stock market index in Delhi. The full form of SNE is the National Stock Exchange of India. Nifty May 50 companies are involved. It started in November 1994.
The word nifty is formed by combining national and fifty. There are 50 companies involved in the 50 National Stock Exchange. This fifty companies are selected from different sectors of the country, only the decrease or increase of Nifty shows the market’s attitude like the Sensex. Nifty is also known as Nifty 50.
How Nifty May Top 50 Companies Are Selected.
NIFTY TOP 50 COMPANIES: To join NIFTY, 12 sector’s biggest and highest profit earning company, Which is financially strong and the company with the most market cap is chosen.
These companies are also taken in the fields of Media, Information, Pharma, Metal, FMCG, Energy, Real Estate, Financial Services etc.
What is the difference between SENSEX and NIFTY?
- The Sensex started in May 1986, while the Nifty started in 1994.
- The SENSEX is the index of the Mumbai Stock Exchange, while the Nifty is the index of the National Stock Exchange.
- The SENSEX consists of 30 companies, while the Nifty consists of 50 companies.
- Sensex’s base year is 1978-79, while Nifty’s base year is 1995.
- The base value of SENSEX is 100 while the base value of Nifty is 1000.
Both SENSEX and NIFTY indices India’s largest stock exchange.
Why does Nifty work with Sensex?
The nifty 50 and the settled SENSEX are both indices and it varies from time to time, this is the difference between these two lists,
- SENSEX: The base year is 1978-79 and the base price is 100.
- Nifty: Base year 1995 and base price 1000.
As you see from this record, you know that Nifty in Hindi started after 17 years of the beginning of Sensex. Therefore, the value of nifty in Hindi works with Sensex. If the NIFTY and SENSEX start in an honor year, both of them are valued.
Over time, changes are also made in the companies and industries involved in the Sensex and Nifty. The index is structured that from that index on May all the Indian economy should be reflective in nature.20 years ago, IT companies hardly had any presence in India and due to this, they were not part of the index. Today, his importance has increased and his index is more than 12%. Banking financial companies dominate the Sensex and Nifty with more than 30% exposure.
Sensex and Nifty are the world’s leading indices
The performance of the stock market globally is determined by the performance of the index. The US has Drove Johannes, Futsi in UK, DX in Germany, Nikai in Japan, and Hang Seng Equity Benchmark Index in Hong Kong. This is the Sensex and Nifty for India.
The share market of the world and its index is at the top according to the turnover of the share market of different countries. Here in detail, we tell you about the major and biggest share market of the world. People from all over the world trade in these foreign share markets. The entire market capitalization of the stock market around the world is $ 70 trillion. To understand this figure, let me tell you that the value of $ 1 trillion will be equal to 64 lakh crores rupees.
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