Sensex Nifty stock market - 10 things to know with detail
- 1. Sensex and Nifty are the two main stock market indices in India. Sensex, short for Sensitive Index, is managed by the Bombay Stock Exchange (BSE) and consists of 30 of the largest and most actively traded stocks on the exchange. Nifty, short for National Stock Exchange Fifty, is managed by the National Stock Exchange (NSE) and consists of 50 of the largest and most liquid stocks on the exchange.
- 2. Both Sensex and Nifty are used as benchmarks to measure the performance of the Indian stock market as a whole. They provide a snapshot of the overall market sentiment and direction.
- 3. The stock market indices are calculated based on the market capitalization of the constituent stocks. Market capitalization is the total value of all outstanding shares of a company's stock.
- 4. The stock market indices are calculated using a weighted average formula, where stocks with higher market capitalization have a greater impact on the index value.
- 5. The stock market indices are updated in real-time during trading hours, providing investors with a quick and easy way to track the performance of the market.
- 6. The stock market indices are influenced by a variety of factors, including economic indicators, corporate earnings, geopolitical events, and investor sentiment.
- 7. Changes in the stock market indices can have a significant impact on individual stocks and sectors. For example, if the Sensex or Nifty index goes up, it indicates that the overall market is performing well, which can lead to increased investor confidence and investment in stocks.
- 8. Investors use the stock market indices as a tool to gauge the overall health of the market and make informed investment decisions. By tracking the performance of the indices, investors can identify trends and patterns that may help them make profitable trades.
- 9. The stock market indices are also used by financial institutions, fund managers, and analysts to benchmark the performance of their portfolios against the broader market.
- 10. Overall, the Sensex and Nifty stock market indices play a crucial role in the Indian financial market, providing investors with a comprehensive view of the market's performance and helping them make informed investment decisions.