WHAT IS NIFTY ?

What are the Sensex & the Nifty?

The Sensex is an “index” for stock market ..An index is the average of prices of shares in the list of index based on weights of prices and volumes. So it gives average of total market movement in largely traded stocks. It gives directions of the market. it is basically an indicator which It gives you a general idea about most of the stocks whether they have gone up or gone down

The Sensex is an indicator of all the major companies of the BSE(Bombay stock Exchange).It derives its value from movement of 30 stocks that comprises
sensex….
The Nifty is an indicator of all the major companies of the NSE. (National Stock Exchange). It derives its value from movement of 50 stocks that comprises
nifty….

The BSE is situated at Bombay and the NSE is situated at Delhi.these two are most popular stock exchanges in the country , almost all the trading is done through either BSE or NSE

If the Sensex goes up, it means that the prices of the stocks of most of the major companies listed  on the BSE have gone up. If the Sensex goes down, this indicates that the stock price of most of the major stocks on the BSE have gone down.

Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE.

Besides Sensex and the Nifty there are many other indexes. There is an index that gives you an idea about whether the mid-cap stocks go up and down. This is called the “BSE Mid-cap Index”. There are many other types of indexes.
like  index for the metal stocks, index for the FMCG stocks, index for the automobile stocks etc.