What is Nifty and Sensex?
Hello friends, welcome to our website. Friends, we all have heard a lot about Share Market. Friends, today we will know about the term Nifty and Sensex. I’m sure that you must have heard somewhere about Nifty and Sensex. Friends, if you are also confused about these terms and wants to know about their meaning, then read this article you will know about their meaning and purposes. So friends, let us understand What is Nifty and Sensex? Friends, let us explore about Nifty and Sensex about their meaning and purposes.
What is Nifty and Sensex?(explanation about both)
Friends, firstly let us know about the Nifty.
Nifty-
Friends, let us understand about the Nifty. The word Nifty is made up of two words, which is National Stock Exchange and fifty, which directly means 50. Friends, Nifty includes 50 major companies and this Nifty is the biggest stock market index of NSE.
Friends, this is use to track trends of markets and also used for comparing different investments. So friends, in other words we can say that Or Nifty can be define as it is a benchmark for indicating the overall performance of Stock Market or Share Market.
Purposes of Nifty-
The following are the purposes of Nifty-
- With the help of Nifty you can understand about market trends.
- With the help of Nifty you can compare different investments. In other words, we can say that it provides guide for one’s investment choices.
- With the help of Nifty you can track the overall performances of stock market.
What is Sensex?
Sensex- Friends, let’s us know about the Sensex. So friends, let us explore about the term Sensex and purposes of Sensex. Friends, you must have heard a lot about Nifty and Sensex on news channel whenever they talk about share markets or stock markets they use these terms. You must have read these terms in newspaper. So friends, if we talk about the Sensex, so Sensex is also made up of two words that is Sensitivity and Index.
Friends, Sensex reflects the sensitivity of the market, which means that it reflects the thinking of people about the market. Sensex includes 30 Indian companies which belongs to different – different sectors of India. Sensex stands for Stock Exchange Sensitive Index. We can say that Sensex is the benchmark of stock index or markets which represents the 30 companies which is listed on the BSE.
Purposes of Sensex-
The following are the purposes of the Sensex-
- Sensex is the sensitivity index which helps to know about the peoples thinking about the particular markets.
- It generally reflects the idea of the general market trends or it basically focused on the idea of where the general market trends is.
- It represents 30 companies, which are listed on the BSE (Bombay Stock Exchange Limited).
Differences between Nifty and Sensex-
Both are the measuring index but there are few difference between Nifty and Sensex and these are as follows-
- Nifty represents 50 companies where as Sensex represents 30 companies.
- The calculation method of both is different.
- Sensex is the benchmark of BSE while Nifty is the benchmark of NSE.
Conclusion-
Friends, Nifty and Sensex both are the benchmark which tells us about the trends of market. I hope that this article helped you a lot to know about the Nifty and Sensex. Friends, now I’m sure that you have a lot of knowledge about What is Nifty and Sensex. So friends, I hope that you liked the information which are mentioned in this article about Nifty and Sensex.
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FAQs on What is Nifty and Sensex-
Q1- What is full form of NSE?
ANS- National Stock Exchange.
Q2- What is the full form of BSE?
ANS- Bombay Stock Exchange.
Q3- What are the importance of Sensex?
ANS- It is important because it provides the idea of people or thinking of people on general markets and it is also reflects or provides the performances of the portfolios of the investors.