What Is SENSEX And NIFTY? Detail Explanation Of Stock Market Index | Motilal Oswal

"Want to understand what are Sensex and Nifty - the Indian stock market indices? Get a detailed understanding on the Indian stock markets and learn all about Nifty and Sensex at EDUMO by Motilal Oswal
For Having an understanding of what nifty and Sensex are, one first needs to understand what is the Indian stock exchange. There are 2 main stock exchange entities in India - namely, the Bombay Stock Exchange (BSE) also known popularly as Sensex, and the National Stock Exchange (NSE), popularly known as Nifty.
Let us know more about the BSE Sensex first - India's primary stock exchange. The BSE is located at Dalal Street In Mumbai and is Asia's oldest stock exchange, which was started in the year 1875. BSE is also known as the world's fastest stock exchange with a median trade speed of 6 microseconds. More than 5,500 companies are listed in BSE. Because there are so many stocks listed in the BSE Sensex, it is difficult to track the performance of every single stock at a time. For this reason, a smaller sample size out of the total number of listed companies in the Bombay Stock Exchange are chosen, which is indicative of the whole market. Hence, this smaller sample of stocks helps understand the value of a section of the stock market. The stock market index Sensex is also called as BSE 30 is an index that consists of top 30 properly established companies. These 30 companies that are in the BSE 30 index are chosen on the basis of Free Float Market Capitalization model. When Sensex falls, it basically means that most of the stocks that are included in this index have fallen, due to which this overall stock market index shows a drop. Similarly, when Sensex rises, it means most of the listed companies have gained, and hence the index also moves in the positive direction.
Now, let us talk about the National Stock Exchange (NSE), which is the leading stock exchange of India. This stock market index was introduced to end the monopoly of BSE in the Indian stock markets. The national stock exchange (NSE) was established in 1992, and was the first exchange to provide a fully automated screen based trading system. The NSE's index is Nifty 50, is used by not only investors in India, but by investors around the world. It is considered as a barometer of the Indian Stock Markets. Nifty 50 is also known as just Nifty, is a stock market index comprising of 50 top valued and financially sound companies listed on the NSE. The base year for Nifty is 1995 and base value is 1000. The 50 stocks that constitute Nifty are selected from across 20 sectors, which makes it one of the most reliable and effective stock market indices in the world.
Hope this information helps all our fellow investors know about the basics of NSE and BSE, and have a clear picture of what are Sensex and Nifty.
To know more about Nifty and Sensex, visit Motilal Oswal website with the link given below.

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beautiful and crystal clear explanation