8 Replies to “wat is sensex and nifty?”

  1. For the premier Stock Exchange that pioneered the stock broking activity in India, 128 years of experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called ‘The Stock Exchange, Mumbai’ by paying a princely amount of Re.1/-.

    Since then, the country’s capital markets have passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market.

    SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media.

    The Index was initially calculated based on the ‘Full Market Capitalization’ methodology but was shifted to the free-float methodology with effect from September 1, 2003. The ‘Free-float Market Capitalization’ methodology of index construction is regarded as an industry best practice globally. All major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the Free-float methodology.

    Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to be the pulse of the Indian stock market. As the oldest index in the country, it provides the time series data over a fairly long period of time (From 1979 onwards). Small wonder, the SENSEX has over the years become one of the most prominent brands in the country.
    S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

    S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India’s first specialised company focused upon the index as a core product. IISL has a Marketing and licensing agreement with Standard & Poor’s (S&P), who are world leaders in index services.

    The traded value for the last six months of all Nifty stocks is approximately 44.89% of the traded value of all stocks on the NSE
    Nifty stocks represent about 58.64% of the total market capitalization as on March 31, 2008.
    Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.15%
    S&P CNX Nifty is professionally maintained and is ideal for derivatives trading

    The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs. The SENSEX captured all these events in the most judicial manner. One can identify the booms and busts of the Indian stock market through SENSEX.


  2. A Stock Exchange is the place where investors go to buy/sell their shares. You know what an Equity share is. Pls refer to Equity Shares for more details.

    Once a company’s public offering is complete, it gets listed in a stock exchange. After listing it would be available for trading to all investors in the stock exachanges where they are listed. In India we have two major stock exchanges. They are:

    1. The National Stock Exchange (NSE) &
    2. The Bombay Stock Exchanges (BSE)

    To know more about the NSE and BSE visit:
    http://anandvijayakumar.blogspot.com/2008/10/stock-exchanges-in-india_22.html

    cheers,
    Anand
    http://anandvijayakumar.blogspot.com
    Mail me at [email protected] if you have any further queries


  3. They a Measurements of Stock Exchange
    Sensex Measures the Bombay Stock Exchange(BSE)
    Nifty Measures the Nation Stock Exchange(NSE)


  4. SENSEX:
    SENSEX, first compiled in 1986, was calculated on a “Market Capitalization-Weighted” methodology of 30 component stocks representing large, well-established and financially sound companies across key sectors. The base year of SENSEX was taken as 1978-79. SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. It is scientifically designed and is based on globally accepted construction and review methodology. Since September 1, 2003, SENSEX is being calculated on a free-float market capitalization methodology. The “free-float market capitalization-weighted” methodology is a widely followed index construction methodology on which majority of global equity indices are based; all major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology.

    NIFTY
    Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

    S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India’s first specialised company focused upon the index as a core product. IISL has a Marketing and licensing agreement with Standard & Poor’s (S&P), who are world leaders in index services.

    The traded value for the last six months of all Nifty stocks is approximately 44.89% of the traded value of all stocks on the NSE
    Nifty stocks represent about 58.64% of the total market capitalization as on March 31, 2008.
    Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.15%
    S&P CNX Nifty is professionally maintained and is ideal for derivatives trading


  5. sensex is index measuring bombay stock exchange (bse)and nifty is index measuring national stock exchange(nse).index is a term you can say that measures market height,nse and bse are two markets in India.sensex stands for sensual index.they both use market capitalisation weighted method for indexing market,this could be the new term for you,let me explain it,suppose you had some asset of 1000 rs and you said that you will sell those asset in 100 shares of rs 10 each .when some one purchases your first share you said now i will sell my 99 shares for rs. 11 each and so on,this is how the market rises now suppose when all the shares where sold you sell the final share (the 100th one) at the cost of 110(increasing linearly)now the person who purchased 1st share from you at the cost of 10 returns it to you(sells his share to you) you will give him 110 rs.now that person earns 100 rs,did you lost some thing,no(this is why only investors loose or gain not company) because you asset was 1000,investors purchased shares from you increasingly 10+11+12+13……+110.so you gained 0+1+2+3+4…+100=5050.even if all the shares will be returned to you in the same order they were purchased you will have your 1000 rs asset.maintaining the order of purchase and sale same is least probable(1 out of millions).so companies always gain



  6. The sen sex n the nifty r the barometers through which the price movements of shares of Indian listed companies r measured.Besides,these two indicate the level of economic growth n the quantum of inflow n out flow of FII s money from n to the Indian stock market.
    The sen sex: It consists of the prices of 30 most liquid n capitalised shares from different sectors operating in the country n listed in BSE. The sensex shows the price moements of shares listed in the BSE.Its rise n fall depend on bulls n bears.When the bulls buy BSE shares , the sen sex goes up n when they sell,the sen sex falls.The sensex level was found by taking a base year n the prices of the sensex shares prevailing on base year date..The rise n fall of the prices of the sensex shares over n above the base price determines the level of sensex.

    The nifty :It consists of 50 most liquid shares listed in the NSE.Its level has been decided by taking a base year price of the shares listed in the NSE.The rise n fall depends on the same way as has been mentioned in case of BSE sensex.


  7. Sensex the index of 30 major companies on BSE ( Bombay Stock Exchange) which reflects the movement of the market.

    In the same way, Nifty on National Stock Exchange is the major index which indicates the movement of the NSE. Nifty had 50 companies in the list. This is also called Nifty-50.

    To know more on this sensex and Nifty
    Visit
    http://www.bseindia.com
    http://nseindia.com
    http://www.vantagetrade.com/?sd=ya06
    http://wikipedia.com
    http://www.moneycontrol.com





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