What is SENSEX and NIFTY?

What is SENSEX and NIFTY?

 

We are going to talk about does Sensex and the nifty which are very commonly used in the field of investments. We often hear Sensex and nifty on a day to day basis.

But before knowing what is SENSEX and NIFTY?

First try to get that what’s BSE and NSE?

BSE is Bombay Stock Exchange (1875)

Bombay Stock Exchange is one of Asia's oldest Stock Exchange

NSE is National Stock Exchange (1972)

 

Now you also need to know what is an Index?

The stock exchanges consist of many companies of various sectors. Like BSE has about 6000 companies. To understand market’s performance some set of companies of various sectors are chosen and a group is made. This group is called as index.

 

Now we come to

What is SENSEX and NIFTY?

let's understand the story behind the Sensex and the Nifty. Now those of you who are in the investment board, keep hearing about the Bombay stock exchange and you hear about Sensex climbing high or falling down. Now this stock exchange double up the index. To know what's happening in the stock market and how it can be represented by an index. Now if you look into the details of the Sensex. The Bombay stock exchange's Index is 30 stock basket, which is popularly known as Sensex. This represents the top 30 stocks in the Indian stock market. But when we say 30 stocks either printed on the Sensex are all the stocks term equal returns on the Sensex.

 

 

Sensex Top 30 stocks

Reliance Industries

HDFC Bank

HDFC

Infosys

ICICI

 

 

 

 

NIFTY: Top 50 Stocks

A nifty has 50 companies. Nifty stands for National Stock Exchange Fifty

 

Top constituents by weightage

Company's Name                                                 Weight(%)

HDFC Bank Ltd.                                                    10.98

Reliance Industries Ltd.                                           9.76

Housing Development Finance Corporation           8.31

ICICI Bank Ltd.                                                     6.95

Infosys Ltd.                                                            5.34

Tata Consultancy Services Ltd.                            4.53

Kotak Mahindra Bank Ltd.                                            4.49

 

 

Sector Representation

Sector                                                          Weight(%)

FINANCIAL SERVICES                                        41.98

ENERGY                                                      14.46

IT                                                                   12.77

CONSUMER GOODS                                                11.24

AUTOMOBILE                                              5.72

 

If you are investor, you need to know that SENSEX has increased 420 times in the last 41 years and NIFTY has grown 12 times in the last 25 years