What is the Difference Between Nifty and Sensex?

The main difference between Sensex and Nifty lies in the number of stocks they comprise and the exchanges they represent. Sensex, short for "sensitive index," represents the top 30 listed companies on the Bombay Stock Exchange (BSE). On the other hand, Nifty, which stands for "National Stock Exchange Fifty," represents the top 50 companies listed on the National Stock Exchange (NSE).

Here are the key differences between Sensex and Nifty:

• Number of Stocks: Sensex comprises 30 stocks, while Nifty comprises 50 stocks.
• Exchanges: Sensex is the benchmark index of the BSE, while Nifty is the benchmark index of the NSE.
• Market Capitalization: Both Sensex and Nifty represent large-cap companies, which generally have a good degree of liquidity and are traded on stock exchanges. These companies represent approximately 70% - 75% of the total market capitalization in India.
• Calculation Method: Both Sensex and Nifty use the free-float market capitalization weighted method for calculation.

In summary, Sensex and Nifty are broad market indices that represent the overall performance of the Indian stock market. They are independent indices, and one is not superior to the other. Both indices are benchmarks for measuring the performance of various individual stocks and other indices, helping investors to understand the market trends and make informed decisions.

Comparative Table: Nifty vs Sensex

The main difference between Nifty and Sensex is the number of companies they represent. Nifty comprises the top 50 stocks listed on the National Stock Exchange (NSE), while Sensex includes the top 30 stocks listed on the Bombay Stock Exchange (BSE). Here is a comparative table highlighting the differences between Nifty and Sensex:

Both Nifty and Sensex are benchmark indices used to measure the overall performance of the stock market in India. They are calculated using the free-float market capitalization weighted method. While Nifty has 50 constituent stocks, Sensex has only 30, making Sensex more niche and in a bullish market, top companies push its index value higher. Neither index is superior to the other, as they both serve as representations of the stock market and its performance.