What is the difference between NIFTY and SENSEX? NIFTY vs SENSEX
In the world of the share market, you will often hear these terms. Let’s understand this.
NIFTY and SENSEX are stock market indexes that determine and depict the strength of the stock market.
SENSEX is the oldest market index and includes shares from the top 30 companies listed on the Bombay Stock Exchange. It represents 45 % of the index’s free-float market capitalization.
NIFTY, on the other hand, includes the shares from the top 50 companies listed on the National Stock Exchange representing around 62% of the index’s market free-float capitalization.
What is an Index?
An index is the aggregate that measures change, such as market performance or price movement.
What is SENSEX?
SENSEX comes from the word SENSITIVE and INDEX.
SENSEX = SENSITIVE + INDEX.
So SENSEX is the index of the Bombay Stock Exchange (BSE). It has a base value of 100