Sensex vs Nifty: Two Sides of India’s Stock Market
If you’ve ever watched business news, you’ve probably heard:
"Sensex up 300 points" or "Nifty slips below 18,000."
But what do they really mean? Are they the same? Not quite.
Let’s break down the difference between Sensex and Nifty—India’s two most popular stock market indices.
What is Sensex?
Full Form: Sensitive Index
Introduced by: Bombay Stock Exchange (BSE) in 1986
Tracks: Top 30 companies listed on the BSE
These 30 are financially strong, large-cap companies across major sectors like IT, Banking, Pharma, and FMCG.
Examples: Reliance Industries, TCS, Infosys, HDFC Bank
📌 Think of Sensex as a thermometer for the BSE.
What is Nifty?
Full Form: National Stock Exchange Fifty (NIFTY 50)
Introduced by: National Stock Exchange (NSE) in 1996
Tracks: Top 50 companies listed on the NSE
These 50 companies represent over 60% of NSE’s total market cap.
Examples: HDFC Bank, Infosys, SBI, ITC, Hindustan Unilever
📌 Nifty reflects the overall performance of NSE.
Key Differences Between Sensex and Nifty
| Factor | Sensex | Nifty 50 |
|---|---|---|
| Stock Exchange | BSE | NSE |
| No. of Companies | 30 | 50 |
| Year Started | 1986 | 1996 |
| Index Calculation | Free-float market cap method | Free-float market cap method |
| Base Value | 100 (in 1978-79) | 1000 (in 1995) |
| Index Ticker | BSE: SENSEX | NSE: NIFTY 50 |
Which One Should You Follow?
Both!
If you're investing in mutual funds, ETFs, or tracking the Indian economy, both indices matter.
Most diversified funds have exposure to companies listed in both NSE and BSE.
Why It Matters for You
Knowing the difference helps you understand market movements better
Helps compare investment benchmarks
Useful for choosing between index funds (Sensex vs Nifty-based)
🙋♂️ FAQs
Q1. Which is more popular – Sensex or Nifty?
👉 Nifty is more actively used in mutual funds and ETFs, but Sensex is equally respected.
Q2. Can I invest directly in Sensex or Nifty?
👉 You can’t buy the index, but you can invest via index mutual funds or ETFs based on them.
Q3. Which gives better returns – Nifty or Sensex?
👉 Historically, both show similar returns over the long term. It depends more on market conditions.
Published on : 25th July
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed