what is nifty? what does it constitute? how does it function? what difference does it make from sensex ???



what is nifty? what does it constitute? how does it function? what difference does it make from sensex ???
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4 Replies to “what is nifty? what does it constitute? how does it function? what difference does it make from sensex ???”


  1. Dear reader,

    The Standard & Poor’s CRISIL NSE Index 50 or S&P CNX Nifty nicknamed Nifty 50 or simply Nifty, is the leading index for large companies on the National Stock Exchange of India. The Nifty is a well diversified 50 stock index accounting for 23 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.
    It is a weighted average of stock prices. It is calculated real time by NSE system.
    Sensex is index of BSE. Nifty is index of NSE. The size of index shows status of market.


  2. Adding to what prev reader has mentioned about NIFTY and SENSEX, Nifty constitutes 50 companies whereas Sensex has 30 companies. Hence due to wider coverage of constituents, NIFTY is favored by fund managers/ FII as benchmark to track their performance.

    But Sensex has longer history, so if you want to do some analysis and needs data for longer period then Sensex is winner.

    Hope this helps.






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