The Sensex and Nifty are " index". They are basically an indicator. It gives you a general idea about whether most of the stocks ( share prices )have gone up or gone down.
The Sensex is "sensitive index"which is an indicator of all the major companies of the BSE(Bombay Stock Exchange)
· If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.
· The Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies.
· The 30 companies that make up the Sensex are selected and reviewed from time to time by an “index committee”. This “index committee” is made up of academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.
Want to know detail for calculation: http://www.indiahowto.com/how-to-calculate-bse-sensex.html
The Nifty is an indicator of all the major companies of the NSE( National Stock Exchange)
· NIFTY was coined fro the two words ‘National’ and ‘FIFTY’. The word fifty is used because; the index consists of 50 actively traded stocks from various sectors.
· Nifty is calculated using the same methodology adopted by the BSE in calculating the Sensex
· 50 top stocks are selected from 24 sectors.
Besides Sensex and the Nifty there are many other indexes.
1. index for the metal stocks
2. index for the FMCG stocks.
3. index for the automobile stocks etc.
The Sensex is "sensitive index"which is an indicator of all the major companies of the BSE(Bombay Stock Exchange)
· If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.
· The Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies.
· The 30 companies that make up the Sensex are selected and reviewed from time to time by an “index committee”. This “index committee” is made up of academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.
Want to know detail for calculation: http://www.indiahowto.com/how-to-calculate-bse-sensex.html
The Nifty is an indicator of all the major companies of the NSE( National Stock Exchange)
· NIFTY was coined fro the two words ‘National’ and ‘FIFTY’. The word fifty is used because; the index consists of 50 actively traded stocks from various sectors.
· Nifty is calculated using the same methodology adopted by the BSE in calculating the Sensex
· 50 top stocks are selected from 24 sectors.
Besides Sensex and the Nifty there are many other indexes.
1. index for the metal stocks
2. index for the FMCG stocks.
3. index for the automobile stocks etc.