The Indian stock market is one of the fastest-growing financial markets in the world. Two names that you often hear when people talk about stocks in India are Sensex and Nifty. If you are new to investing, these terms may sound confusing. But don’t worry – this blog will explain them in a simple and clear way.
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What is Sensex?
Sensex is short for Sensitive Index. It is the stock market index of the Bombay Stock Exchange (BSE).
- It was launched in 1986.
- It represents the top 30 companies listed on the BSE.
- These companies are chosen from different sectors like banking, IT, energy, and FMCG.
When Sensex goes up, it means the overall performance of these top 30 companies is good. When it goes down, it signals weakness in the market.
What is Nifty?
Nifty stands for National Stock Exchange Fifty.
- It was launched in 1996 by the National Stock Exchange (NSE).
- It includes 50 large companies from different industries.
- Just like Sensex, Nifty shows the overall performance of the stock market.
Sensex vs Nifty: The Key Difference
| Feature | Sensex | Nifty |
|---|---|---|
| Stock Exchange | Bombay Stock Exchange (BSE) | National Stock Exchange (NSE) |
| Year Started | 1986 | 1996 |
| No. of Companies | 30 | 50 |
| Base Value | 100 (in 1978-79) | 1000 (in 1995) |
Both Sensex and Nifty help investors understand the market trend.
Why Do They Matter?
- Market Indicator – They show whether the economy is performing well or facing challenges.
- Investor Confidence – A rising Sensex or Nifty boosts investor confidence.
- Decision Making – Traders and investors use them to decide when to buy or sell stocks.
How to Track Sensex and Nifty?
You can track live updates these websites provide real-time charts, company lists, and latest stock market news.
Conclusion
Sensex and Nifty are the heartbeat of the Indian stock market. If you want to start your journey in investing, keep an eye on these two indexes. They give you a clear picture of the market and help you make smart investment decisions.
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