Investors' corner: Differences between Nifty and Sensex

NIFTY and Sensex are two prominent stock market indices in India, each with its own distinct characteristics:

Full Form:

NIFTY: Stands for National Stock Exchange Fifty.

Sensex: Known as the sensitive index of the National Stock Exchange of India.

Number of Companies:

NIFTY: Comprises 50 companies.

Sensex: Consists of 30 companies.

Methodology:

NIFTY: Utilizes the Free Float Market Capitalization Weighted Index methodology.

Sensex: Relies on the Market Capitalization Weighted Index methodology.

Calculation:

NIFTY: Uses free-float market capitalization methodology.

Sensex: Utilizes full market capitalization methodology.

Base Year:

NIFTY: Base year is 1995.

Sensex: Base year is 1978.

Exchange:

NIFTY: Traded on the National Stock Exchange (NSE).

Sensex: Traded on the Bombay Stock Exchange (BSE).

Performance:

NIFTY: Considered a benchmark for the performance of large-cap companies in India.

Sensex: Considered a benchmark for the overall performance of the Indian stock market.