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#what is sensex
ankitfinance · 2 years
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What is the Sensex and how is it determined? | m.Stock
The term SENSEX is a combination of the words sensitive & index." Visit now to know what is Sensex in detail and understand how it is calculated at m.Stock! https://www.mstock.com/articles/what-is-sensex-and-how-is-it-calculated
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luckymoonrebel · 2 years
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Almost every day, we come across the term Sensex in news channels and learn about rising stocks, high-paid shares, and market crashes. But surprisingly, most of us remain ignorant about what it means. Let’s discuss about the SENSEX in depth. Read the full article!
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kadam89priyanka · 11 months
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What is the difference between Sensex and Nifty 50? - logicalnivesh
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skytrustit · 1 year
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What is the difference between Sensex and Nifty 50?
What is the difference between Sensex and Nifty 50?
Sensex and Nifty are indices whose upward, or downward movement determines a bullish or bearish market trend. Out of the two Indian stock exchanges, BSE is the oldest and comprises of top 30 listed companies of different niches. Sensex is the benchmark index of BSE. On the other hand, NSE contains a list of the top 50 companies from different sectors, with Nifty being its benchmark index.
“In the short run, the market is a voting machine. In the long run, it is a weighing machine,” said Benjamin Graham, founder of stock analysis and value investing. The Indian stock market is a massive platform with thousands of stocks listed on it. Traders and investors look out for multiple criteria to find their best bet. However, determining the correct market trend is facilitated by two market barometers – Sensex and Nifty. These two indices’ upward or downward movement determines a bullish or bearish market trend.
What is a stock index?
An index is the subset of the stock market that determines the market’s performance or price movement. An index comprises a list of well-established companies in their respective industries and is regarded as the best performance indicator of the economy.
Furthermore, stocks belong to more than a specific industry like IT, automobile, banks, etc. Instead, they are picked from all the major sectors of the economy, showing a complete picture of the stock market. Apart from investing in companies, you can also invest in stock indexes through mutual funds schemes and exchange-traded funds (ETFs).
There are two Indian stock exchanges – The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). BSE is the oldest stock exchange and comprises of top 30 listed companies of different niches. Sensex is the benchmark index of BSE. On the other hand, NSE contains a list of the top 50 companies from different sectors, with Nifty being its benchmark index. Now let’s have a detailed analysis of what is Nifty and Sensex.
What is Sensex?
Also known as Sensitive Index, Sensex was coined by Deepak Mohoni in 1986. It is the main index of the oldest stock exchange in India, BSE. It comprises shares of 30 top companies of all the major sectors and is calculated using the free float market capitalization method. In simpler terms, when Sensex moves upwards, traders and investors prefer to buy the stocks, and when Sensex moves downward, traders and investors prefer to hold back their positions. The Sensex calculation formula = (Free float market capitalization of 30 companies / Base market capitalization) * Base value of the index
What is Nifty 50?
Also known as the National stock exchange fifty, Nifty is the flagship index of NSE and one of the most recognized stock indexes in India. It was established in 1996, and its other aliases are Nifty 50 and CNX Nifty. Nifty 50 comprises a list of 50 top companies from multiple industries. These companies have a large cap and majorly form three-fourths of Indian capitalization. Nifty is calculated using the free-float market capitalization-weighted method. Index services and products limited (IISL), a subsidiary of NSE, owns and manages Nifty.
People often search for what is bank Nifty when studying Nifty 50. Bank Nifty is a part of Nifty 50 that comprises 12 stocks of only the banking sector. It is also referred to as a sectoral index that measures the performance of only the banking sector.
Difference between Sensex and Nifty 50
The two indexes sound similar to each other in their nature of work and purpose. However, the difference lies in Sensex and Nifty meaning and working style. Below is a detailed list of differences between the two.
Operated by – Sensex is the benchmark index of BSE (Bombay Stock Exchange), the oldest stock exchange in India. Nifty is operated by one of the most recognized Indian stock exchanges, NSE (National Stock Exchange).
Full form – Sensex comprises ‘Sensitive and index,’ and Nifty includes ‘National and fifty.’
Aliases – Sensex is also famous as S&P BSE Sensex. On the other hand, Nifty is also known as Nifty 50 and S&P CNF Fifty.
Establishment – People are often confused about when was Nifty established and when Sensex came into action. Sensex was incorporated in 1986, and Nifty 50 started in 1996.
Number of constituents – Sensex comprises the top 30 companies traded actively in BSE. Whereas, Nifty constitutes the top 50 companies traded actively on NSE.
Number of sectors covered – Sensex covers 13 industrial sectors. Nifty is a broader market index, so it covers 24 industrial sectors.
Base value – The base value of the Sensex index is 100, and the Nifty 50’s base value is 1000.
Base year – The base year considered for Sensex’s calculation is 1978 -1979. Whereas the base year for Nifty50 is 1995.
Volume and liquidity – The volume and liquidity are comparatively lower in Sensex and higher in Nifty 50.
Despite such differences, some well-established and fundamentally stable companies are a part of Nifty50 and Sensex. However, as an investor, one should know that investing only in either will allow you to contribute to the wealth creation process.
Factors responsible for affecting the performance of Sensex and Nifty
As you get well aware of what is Nifty and Sensex, it is essential to know the common factors responsible for affecting the performances of these indexes.
Change in the rate of interest – The stock market and interest rates move in opposite directions. When there is an interest rate increase, lending becomes costlier. Hence, companies reduce their expenses, pressurizing the stock performance, leading to a fall in indices.
Inflation – A rise in inflation is one of the primary reasons for the fall in the stock market. When inflation is high, investors don’t have enough surplus funds to invest, and companies also have to bear the rising economic conditions.
Global Economy – A change in the global economy will lead to a noticeable difference in the performance of indices. For example, a worldwide recession will lead to a performance impact on the Indian indices.
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anakeb · 2 years
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The Bank of England says it would not hesitate to raise interest rates if the pound falls to a record low
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weedsdmagazine · 2 years
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What is Share Market and Sensex and How It Works ?
The share market, aka stock market, has been a pretty common topic for over a decade now, and you must have heard of it too. This market is popular among investors who tend to buy and sell shares of companies. There are three different terms here, and most people misunderstand the meaning of these. First, a stock market mainly refers to the facilitation as well as the process of investors buying and selling stocks with one another.
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ayush27 · 1 year
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HISTORY OF BSE (Bombay Stock Exchange)
The Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia and one of the largest in the world. It was established in 1875 as "The Native Share & Stock Brokers Association" and was later renamed as the Bombay Stock Exchange.
The BSE began as a small group of brokers trading under a banyan tree outside the Town Hall in Mumbai. Over the years, it grew in size and significance, becoming the hub of the Indian stock market. In 1957, the BSE became the first stock exchange in India to be recognized by the government.
The BSE was initially a manual stock exchange, with trades being recorded by hand and communicated via runners and telegrams. In the late 1980s, the BSE shifted to an electronic trading platform, making it one of the first exchanges in the world to do so.
In 1994, the BSE launched the S&P BSE SENSEX, which is a market index that tracks the performance of the 30 largest and most liquid companies listed on the exchange. The SENSEX has since become the benchmark index for the Indian stock market, reflecting the overall performance of the market.
Today, the BSE has over 5,000 listed companies and is the largest stock exchange in India by market capitalization. It is also the first exchange in India to obtain recognition as a stock exchange from the Government of India under the Securities Contracts (Regulation) Act, 1956.
In recent years, the BSE has focused on expanding its global reach and increasing its technology offerings. It has established several international offices and has developed a range of technology-driven products and services to support the growing needs of the market.
Overall, the BSE has played a crucial role in the development of the Indian economy and remains a key player in the global financial landscape.
In the Next Article We know about Why A country Need Stock exchange and what are the role of stock market in indian Economy
Comment if You have any questions
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zebu-helan · 1 year
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What Are The Indices In The Stock Market?
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An investor can use a stock market index to gauge the performance of a market, such as the Bombay Stock Exchange or the National Stock Exchange, or a sector, such as the energy, infrastructure, or real estate sectors. The two most prominent stock market indices in India are the SENSEX and NIFTY. Indian investors can monitor how the index value changes over time and use it as a benchmark to determine how well their own portfolios are performing.
Investors now refer to the stock market as having indexes for various areas of the market that do not necessarily move in lockstep. Because there would be no need for multiple stock market indices if they did. You may make sense of the daily changes on the Indian market by knowing how stock market indexes are created and how they fluctuate.
The SENSEX S&P BSE (commonly known as the BSE 30 or SENSEX) was the first stock market index for stocks. It was founded in 1986. It is composed of shares from 30 well-known and financially stable BSE-listed companies. These businesses are representative of the major industrial sectors of the Indian economy.
How to Calculate SENSEX
The SENSEX has adopted the market capitalization weighted system, which assigns weights to companies depending on their size. The weight increases as the size increases.
It is now believed that the overall market share was 100 points when the index was created. This displays the percentage change in a logical manner. So, if the market capitalization rises by 10%, the index rises by 10% as well, from 9 to 10.
Assume there is only one stock on the market. Assume that the stock is now trading at 200 and that its fundamental value is 100. If the stock is worth 260 tomorrow, it has increased by 30%. As a result, the index will rise 30 points from 100 to 130. If the stock price falls from 260 to 208, the loss is 20%. The SENSEX will be revised from 130 to 104 to reflect the decline.
CNX NIFTY S&P (also known as NIFTY 50 or NIFTY) The National Stock Exchange has 50 shares of NIFTY, which was founded in 1996. It provides investors with access to the Indian market through a single portfolio and encompasses 24 various segments of the market.
NIFTY computation
The same algorithm used by the Bombay Stock Exchange to calculate the SENSEX is also used to calculate the NIFTY. However, there are three significant differences:
The NIFTY index is comprised of 50 equities that are actively traded on the NSE (SENSEX is calculated on 30)
Each sector has its own index on both the SENSEX and the NIFTY. This makes it easy for investors to keep track of market fluctuations on a daily basis.
Consider this useful advice: if you want to play the stock market, you must learn how to keep a watch on the scorecard, which is composed of two stock market indices. Zebu's platforms provide real-time price movements for the Nifty and Sensex. To learn more, open a trading account with us.
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bigbullishstock · 2 years
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Stock Market Today: Top 10 things to know before the market opens today
Stock market news : Trends in SGX Nifty indicate a negative opening for the broader index in India with losses of 87 points.
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The market is expected to open in the red as trends in SGX Nifty indicate a negative start for the broader index in India with losses of 87 points.
BSE Sensex fell 188 points to 56,410, while Nifty 50 fell 40 points to 16,818 . Formed a bearish candle on the daily chart yesterday.
As per the Pivot chart, the key support level for Nifty is placed at 16,729 followed by 16,640. If the index moves up, the key resistance levels to watch are 16,967 and 17,115.
Stay tuned with bigbullishstock to find out what happens in the currency and equity markets today. We have compiled a list of important headlines on news platforms that may affect the Indian and international markets.
US Markets
Wall Street eased sharply on Thursday over concerns that the US Federal Reserve's aggressive fight against inflation could overwhelm the US economy, and as investors worried about a collapse in global currency and debt markets. The Nasdaq sank near its 2022 lows set in mid-June, with tech heavyweights Apple Inc and Nvidia Corp down more than 4%.
The S&P 500 ended the session down 2.11% at 3,640.47. The Nasdaq fell 2.84% to 10,737.51 points, while the Dow Jones Industrial Average fell 1.54% to 29,225.61.
Asian Markets
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Asia-Pacific shares tumbled on Friday, the last day of the third quarter, after another selloff on Wall Street overnight. China factory activity data is due later today.
In Japan, the Nikkei 225 fell 1.32% and the Topix index fell 0.87%. Australia's S&P/ASX 200 fell 0.48%. In South Korea, the Kospi fell 1%. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.15%.
For more details on this topic visit :- Stock Market Today
For more information on stock market
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Share market
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kritikabansal213 · 23 hours
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What is an ETF?
An exchange-traded fund (ETF) is a type of investment fund that combines the best features of two popular assets: mutual funds and individual stocks. Let’s break down what ETFs are and how they work:
Definition: An ETF is a collection of investments, such as equities (stocks) or bonds. Unlike traditional mutual funds, which are actively managed, ETFs are passively managed and aim to track the performance of a specific index or asset class.
Diversification and Simplicity: ETFs allow investors to gain exposure to a large number of securities at once. They offer the diversification benefits of mutual funds while being more easily traded, like individual stocks.
How ETFs Work:
The underlying assets (stocks, bonds, etc.) are owned by the fund provider.
The provider creates a fund to track the performance of these assets.
Shares in the ETF are offered to investors, who become shareholders.
Note that investors own a part of the ETF but not the fund’s underlying assets.
4. Types of ETFs:
Index ETFs: Designed to track a specific index (e.g., Nifty or Sensex).
Fixed Income ETFs: Provide exposure to various types of bonds.
Commodity ETFs: Track the price of specific commodities (e.g., gold, oil).
Style ETFs: Mirror specific investment styles (e.g., large-cap value, small-cap growth).
Foreign Market ETFs: Monitor non-Indian markets (e.g., Japan’s Nikkei Index).
Inverse ETFs: Profit from a drop in the underlying market or index.
5. Benefits of Investing in ETFs:
Cost-Effective: ETFs often have lower fees compared to other funds.
Liquidity: Traded on stock exchanges throughout the day.
Diversification: Exposure to a broad range of securities.
Tax Efficiency: Typically generate fewer capital gains taxes.
Transparency: Holdings are disclosed daily.
6. Considerations:
Evaluate ETFs based on management charges, ease of purchase/sale, and fit within your portfolio.
Understand the specific index or asset class the ETF tracks. Remember that while ETFs offer advantages, they are not a one-size-fits-all solution. Consider your investment goals and risk tolerance before choosing an ETF.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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angelstocks · 10 days
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What is GIFT Nifty - the new Index of india
india is fastest grow economies in this time. the confidence of indian youth is now stronger to reach all time high sensex and nifty , servel step taken to make india global fincance center. earlier SGX NIFTY based from singapore and now shifted to Gandhinagar in Gujarat in last year and change name to GIFT NIFTY Read More
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What is the difference between Sensex and Nifty 50?
Sensex and Nifty are indices whose upward, or downward movement determines a bullish or bearish market trend. Out of the two Indian stock exchanges, BSE is the oldest and comprises of top 30 listed companies of different niches. Sensex is the benchmark index of BSE. On the other hand, NSE contains a list of the top 50 companies from different sectors, with Nifty being its benchmark index.
“In the short run, the market is a voting machine. In the long run, it is a weighing machine,” said Benjamin Graham, founder of stock analysis and value investing. The Indian stock market is a massive platform with thousands of stocks listed on it. Traders and investors look out for multiple criteria to find their best bet. However, determining the correct market trend is facilitated by two market barometers – Sensex and Nifty. These two indices’ upward or downward movement determines a bullish or bearish market trend.
What is a stock index?
An index is the subset of the stock market that determines the market’s performance or price movement. An index comprises a list of well-established companies in their respective industries and is regarded as the best performance indicator of the economy.
Furthermore, stocks belong to more than a specific industry like IT, automobile, banks, etc. Instead, they are picked from all the major sectors of the economy, showing a complete picture of the stock market. Apart from investing in companies, you can also invest in stock indexes through mutual funds schemes and exchange-traded funds (ETFs).
There are two Indian stock exchanges – The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). BSE is the oldest stock exchange and comprises of top 30 listed companies of different niches. Sensex is the benchmark index of BSE. On the other hand, NSE contains a list of the top 50 companies from different sectors, with Nifty being its benchmark index. Now let’s have a detailed analysis of what is Nifty and Sensex.
What is Sensex?
Also known as Sensitive Index, Sensex was coined by Deepak Mohoni in 1986. It is the main index of the oldest stock exchange in India, BSE. It comprises shares of 30 top companies of all the major sectors and is calculated using the free float market capitalization method. In simpler terms, when Sensex moves upwards, traders and investors prefer to buy the stocks, and when Sensex moves downward, traders and investors prefer to hold back their positions. The Sensex calculation formula = (Free float market capitalization of 30 companies / Base market capitalization) * Base value of the index
What is Nifty 50?
Also known as the National stock exchange fifty, Nifty is the flagship index of NSE and one of the most recognized stock indexes in India. It was established in 1996, and its other aliases are Nifty 50 and CNX Nifty. Nifty 50 comprises a list of 50 top companies from multiple industries. These companies have a large cap and majorly form three-fourths of Indian capitalization. Nifty is calculated using the free-float market capitalization-weighted method. Index services and products limited (IISL), a subsidiary of NSE, owns and manages Nifty.
People often search for what is bank Nifty when studying Nifty 50. Bank Nifty is a part of Nifty 50 that comprises 12 stocks of only the banking sector. It is also referred to as a sectoral index that measures the performance of only the banking sector.
Difference between Sensex and Nifty 50
The two indexes sound similar to each other in their nature of work and purpose. However, the difference lies in Sensex and Nifty meaning and working style. Below is a detailed list of differences between the two.
Operated by – Sensex is the benchmark index of BSE (Bombay Stock Exchange), the oldest stock exchange in India. Nifty is operated by one of the most recognized Indian stock exchanges, NSE (National Stock Exchange).
Full form – Sensex comprises ‘Sensitive and index,’ and Nifty includes ‘National and fifty.’
Aliases – Sensex is also famous as S&P BSE Sensex. On the other hand, Nifty is also known as Nifty 50 and S&P CNF Fifty.
Establishment – People are often confused about when was Nifty established and when Sensex came into action. Sensex was incorporated in 1986, and Nifty 50 started in 1996.
Number of constituents – Sensex comprises the top 30 companies traded actively in BSE. Whereas, Nifty constitutes the top 50 companies traded actively on NSE.
Number of sectors covered – Sensex covers 13 industrial sectors. Nifty is a broader market index, so it covers 24 industrial sectors.
Base value – The base value of the Sensex index is 100, and the Nifty 50’s base value is 1000.
Base year – The base year considered for Sensex’s calculation is 1978 -1979. Whereas the base year for Nifty50 is 1995.
Volume and liquidity – The volume and liquidity are comparatively lower in Sensex and higher in Nifty 50.
Despite such differences, some well-established and fundamentally stable companies are a part of Nifty50 and Sensex. However, as an investor, one should know that investing only in either will allow you to contribute to the wealth creation process.
Factors responsible for affecting the performance of Sensex and Nifty
As you get well aware of what is Nifty and Sensex, it is essential to know the common factors responsible for affecting the performances of these indexes.
Change in the rate of interest – The stock market and interest rates move in opposite directions. When there is an interest rate increase, lending becomes costlier. Hence, companies reduce their expenses, pressurizing the stock performance, leading to a fall in indices.
Inflation – A rise in inflation is one of the primary reasons for the fall in the stock market. When inflation is high, investors don’t have enough surplus funds to invest, and companies also have to bear the rising economic conditions.
Global Economy – A change in the global economy will lead to a noticeable difference in the performance of indices. For example, a worldwide recession will lead to a performance impact on the Indian indices.
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swamyworld · 21 days
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The market was rising rapidly for the last 4 days, then what happened that it broke, is it fear of Lok Sabha elections or something else?
highlights Sensex fell by 384 points while Nifty fell by 140 points. VIX in the market has increased by 2 percent to 17 percent. The midcap index has fallen 1.90 percent in the trading of May 7. New Delhi. The Indian Stock Market is continuously reaching new heights. In the year 2024, it made a record. If we talk about the month of May only, the Sensex has gained about 3.3 percent in the last 4…
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myra-joshi · 21 days
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Big Drop in Stock Market: Sensex and Nifty Fall
Today, the stock market didn't do well. Here's a simple explanation of what happened:
1. Sensex and Nifty dropped
 The Sensex fell by 601 points to 73,294, and the Nifty dropped by 200 points to 22,242. This means the overall value of the stock market went down.
2. Investors lost a lot of money
 Investors lost about 5.5 lakh crore rupees today. This is a lot of money!
3. Stocks hit new lows
 25 stocks reached their lowest prices in a year, while 163 stocks reached their highest prices.
4. Market breadth was negative
 Out of 3,756 stocks, only 948 were doing well, while the rest were not doing so great.
5. Certain sectors were hit hard
 Industries like auto, capital goods, metal, and consumer durables saw big losses.
6. Stocks hit circuit limits
 261 stocks reached their lowest trading limits, showing how much the market dropped.
7. Midcap and small cap stocks fell
 The broader market also saw declines, with midcap and smallcap stocks going down.
8. Foreign investors sold stocks
 Foreign investors sold a lot of stocks, while domestic investors bought some shares.
9. What an expert said
 An expert mentioned that the fear index, which shows how scared investors are, has gone up a lot. This is because people are worried about big events like elections. They are trying to protect their investments by buying certain types of stocks.
In conclusion, the stock market had a tough day, and many people lost money. It's important to be careful when investing in stocks, as the market can be unpredictable.
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bizstockk · 21 days
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What is the Difference between Nifty and Sensex
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