Understand in simple language what are Sensex and Nifty

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Sensex and Nifty

Today we will know what Sensex and Nifty are and what is the special difference between them? Often, we all keep hearing about Sensex and Nifty on TV, newspapers or any other places. There are many discussions about their ups and downs every day on TV channels and newspapers. On the other hand, have you ever found out what Sensex and Nifty are? And what is the difference between them?


Sensex is an index of BSE i.e. Bombay Stock Exchange. In the Sensex index, the 30 largest companies from 13 different sectors of the country are index on the basis of market cap. This includes big companies like Reliance, TCS, Infosys. At the time of writing the news, the value of Sensex is running at 58,786.67. Sensex was launch on 1 January 1986. A total of 30 companies are include in this. For this reason, it is also know as BSE30. The ups and downs of the Sensex reveal what is the condition of the country’s big companies and the stock market.

How Is Sensex Calculated

  • Some things are keep in mind before putting a company in Sensex:
  • Market value: The full value of the company should be at least 0.5% of the full value of the index.
  • Trading Details: The company’s shares should have been trade every day in the last year. Exemption can also be give for some special reasons.
  • Daily trading and money activity: This stock should be among the top 150 companies with highest trading and money activity on BSE.


Nifty comes under the National Stock Exchange. A total of 50 companies of the country are index in Nifty. These companies are select from 12 different sectors of the country. The word Nifty is made up of National and 50. Nifty is also known as Nifty 50. It was start in 1994. The fluctuations in Nifty indicate the direction in which the market is moving. Let us know what is the special difference between Sensex and Nifty?

Calculation of Nifty

 Nifty is calculated using a float-adjust, market valuation-weight method. Shows the total market value of all stocks in the list relative to a particular base period. The base value of Nifty is 1000, and the base market cap is ₹2.06 trillion.

List Price = Current Market Price / (Base Market Cap x 1000)

Note* The base year of Nifty is 1995.

As you have already learned the meaning of Nifty, it consists of the largest companies from various industrial sectors, which together form the foundation of India’s economic trends. Similarly, there are also some sectoral indices which follow the performance of stocks in a particular sector.

Difference between Sensex and Nifty

  • Sensex comes under Bombay Stock Exchange. Whereas Nifty is the index of National Stock Exchange.
  • There are 30 companies index within the Sensex. A total of 50 companies have been include in Nifty.
  • The base value of Sensex is 100. And Nifty’s 1000.


Q1. How many companies are there in Sensex?

Ans. 30

Q2. Is Sensex better than Nifty?

Ans. Sensex has been performing better than Nifty.

Q3. Why it is called Nifty?

Ans. Because it a mixture of two words “National stock exchange” and fifty.

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