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Wednesday, May 13, 2020

What is Sensex and Nifty

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What is Sensex and Nifty ??

What is Sensex and Nifty

Sensex and Nifty are basically indices.
To know the economic development of a country there are some criteria i.e. financial performances of the shares of companies but there soo many companies listed on the stock exchange and if we want to know the status of the market then it is impossible to track the stocks of all the companies at a time. 

So to simplify this problem a group of companies is selected that represents the whole market and this group is called index. 

Index of BSE is called sensex. 
And index if NSE is called Nifty.

Sensex is also called BSE 30. Because it is a group of top 30 companies listed on BSE on the basis of its reputation, market capitalisation and significance.
The performance of these top 30 companies indicates the sensex to go up or down. 

If Sensex goes up then it means that the majority of the companies in the BSE 30 is gaining profit i.e. they are doing well and people are buying shares of those companies. It is also called as bull market.

What is Sensex and nifty

If Sensex is declining then it indicates that the majority of the top 30 companies are not doing well they are going in loss and  people are selling their shares. It is also called bear market. 

If Sensex of a country is going up. It is the indication of the economic growth of a country.

Similarly the index of NSE , nifty is calculated by grouping top 50 companies that are listed in NSE. The performance of these top 50 companies decides the movement of Nifty. Base year for the calculation of nifty is taken as 1995. And base value for Nifty is taken as 1000 points. 

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