A Complete Guide on what is Nifty and Sensex

Nifty and Sensex

Are you curious about what Nifty and Sensex are? Wondering what they are used for? If so, then this guide is for you! In this article, we will provide a comprehensive overview of these two important indices. We will also explain how to calculate their values, and what factors influence them. So, whether you’re a beginner or an experienced investor, read on to learn all you need to know about Nifty and the Sensex!

What is Nifty?

Nifty is a stock market index that is composed of the 50 most valuable stocks traded in India. The Sensex is India’s benchmark stock market index and it consists of the 30 most valuable stocks traded in India.

Nifty was created in 2004 as an effort to make the Indian stock market more efficient and inclusive by having a single index composed of the 50 largest companies. The Sensex was created in 1992 as an effort to make the Indian stock market more globalized and accessible by having a single index composed of the 30 largest companies.

Nifty has had a tendency to track the overall market performance better than the Sensex, which can make it a more attractive investment option for those looking to diversify their portfolio. However, because Nifty is made up of smaller stocks, it can be more volatile than the Sensex, which can make it difficult for investors to predict its future movements.

How to use Nifty to make money

Nifty is the India’s most popular stock market index and it has been used by many to make money. In this article, we will tell you what Nifty is, how to use it, and some tips on making money with it.

What is Nifty?
Nifty is an India-based stock market index that was launched in 1996. It consists of 50 stocks and is considered to be one of the most important indices in the country. It’s a good measure of the overall performance of the Indian equity market.

How to Use Nifty?
There are a few ways you can use Nifty to make money. One way is to use it as a benchmark for your own investments. Another way is to use it as a guide for buying and selling stocks. You can also use Nifty as a way to get an idea of how the stock market is performing overall.

Tips on Making Money with Nifty:
1) Start with small investments and gradually increase them over time. This will help you avoid any major losses if something goes wrong. 2) Don’t invest more than you can afford to lose. This will help you avoid getting emotionally attached to your investments

What is the Sensex?

The Sensex is a stock market index that measures the performance of the 30 largest Indian companies. Introduced on May 23, 1995, it is calculated and published by the India Stock Exchange (ISX). The Sensex had an initial capitalization of Rs 2,000 crore. It rose to become one of the world’s most traded stock markets with a market capitalization of over Rs 25 trillion as of March 31, 2019.
To calculate the Sensex, India’s largest exchanges use weighted average price (WAP) data from all its listed stocks. The constituents are then ranked according to their market value. The Sensex has generally been considered a good indicator of the Indian business cycle and stock market trends.
The Sensex closed at 36,883.92 points on March 31st 2019 – registering an annual growth rate of 10%.

How to trade the Sensex?

If you have been following the stock market for a while, you would know that there are two main indices that tracks the performance of the Indian stock market- the Sensex and Nifty.

What is Nifty?
Nifty is an acronym for National Stock Exchange Limited Index. It is an index of the 30 most important stocks traded on the Indian Stock Exchange. The Sensex is a composite index comprising of 508 stocks divided into 10 groups.

When should you trade the Sensex?
There is no definite answer to this question as it depends on your individual investment goals and risk appetite. However, over a longer period of time, it is usually advisable to trade the Sensex in line with broader market trends. For shorter term trading purposes, you can also trade the Sensex according to your own analysis and intuition.

Conclusion

Following the recent craze for all things Nifty and Sensex, it is important to understand what these acronyms actually stand for. Nifty is a stock market index that tracks 50 stocks. The Sensex is an overall stock market index that includes all the companies listed on the BSE (Bombay Stock Exchange) and NASDAQ exchanges. Both indices have been rising steadily in value over the past few years, showing that investors are bullish about India’s economy as a whole.