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Nifty Vs Sensex – Difference between Nifty and Sensex

Nifty and Sensex are Benchmark Indices of Indian Stock Markets which are often mentioned together whenever there is a discussion on the State of the Market. In this Article, we’ll try to explain the difference between Nifty and Sensex. So, Lets Do Nifty vs Sensex in detail.

Understanding the Differences between the two will help you deal in Indices and Market Performance more aptly.

What are Indices?

A Stock Market Index Gives us statistical Data about the Changes taking place in the Stock Market.

It is not practically possible to evaluate every stock for measuring Market Performance. So, The market index is what is most commonly tracked and followed by all market participants to get a broad understanding of the General direction of the Market movement. Sensex and Nifty are the market indices of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) respectively.

If Sensex goes up, this means that the stock prices of most of the major stocks on BSE has gone up. So, Indices give us an measurement of the price performance of a group of shares.

Sectoral Indices: As the name suggests, sector index/benchmark tracks the performance of a particular sector. Nifty Bank gives us an Idea of Performance of Indian Banking Sector. Nifty IT Index Performance gives us an Idea of Performance of IT Sector, Nifty Auto Index Gives an idea of Auto Sector and so On.

Nifty Vs Sensex. Difference between Nifty and Sensex

What is Nifty (Nifty 50)?

A Stock Market Index Gives us statistical Data about the Changes taking place in the Stock Market.

Established in 1995, Nifty (National Fifty) of NSE (located in Mumbai) is an index of Top 50 Companies listed in the National Stock Eexchange. Nifty50 consists 50 different stocks covering 13 different Sectors of the Economy. These Top 50 Companies are 50 Companies with Highest Free – Float Market Capitalization on the NSE.

List of Nifty 50 Companies – Constituents of Nifty 50 (2021)

Company NameIndustrySymbol
Adani Ports and Special Economic Zone Ltd.SERVICESADANIPORTS
Asian Paints Ltd.CONSUMER GOODSASIANPAINT
Axis Bank Ltd.FINANCIAL SERVICESAXISBANK
Bajaj Auto Ltd.AUTOMOBILEBAJAJ-AUTO
Bajaj Finance Ltd.FINANCIAL SERVICESBAJFINANCE
Bajaj Finserv Ltd.FINANCIAL SERVICESBAJAJFINSV
Bharat Petroleum Corporation Ltd.OIL & GASBPCL
Bharti Airtel Ltd.TELECOMBHARTIARTL
Britannia Industries Ltd.CONSUMER GOODSBRITANNIA
Cipla Ltd.PHARMACIPLA
Coal India Ltd.METALSCOALINDIA
Divi's Laboratories Ltd.PHARMADIVISLAB
Dr. Reddy's Laboratories Ltd.PHARMADRREDDY
Eicher Motors Ltd.AUTOMOBILEEICHERMOT
Grasim Industries Ltd.CEMENT & CEMENT PRODUCTSGRASIM
HCL Technologies Ltd.ITHCLTECH
HDFC Bank Ltd.FINANCIAL SERVICESHDFCBANK
HDFC Life Insurance Company Ltd.FINANCIAL SERVICESHDFCLIFE
Hero MotoCorp Ltd.AUTOMOBILEHEROMOTOCO
Hindalco Industries Ltd.METALSHINDALCO
Hindustan Unilever Ltd.CONSUMER GOODSHINDUNILVR
Housing Development Finance Corporation Ltd.FINANCIAL SERVICESHDFC
ICICI Bank Ltd.FINANCIAL SERVICESICICIBANK
ITC Ltd.CONSUMER GOODSITC
Indian Oil Corporation Ltd.OIL & GASIOC
IndusInd Bank Ltd.FINANCIAL SERVICESINDUSINDBK
Infosys Ltd.ITINFY
JSW Steel Ltd.METALSJSWSTEEL
Kotak Mahindra Bank Ltd.FINANCIAL SERVICESKOTAKBANK
Larsen & Toubro Ltd.CONSTRUCTIONLT
Mahindra & Mahindra Ltd.AUTOMOBILEM&M
Maruti Suzuki India Ltd.AUTOMOBILEMARUTI
NTPC Ltd.POWERNTPC
Nestle India Ltd.CONSUMER GOODSNESTLEIND
Oil & Natural Gas Corporation Ltd.OIL & GASONGC
Power Grid Corporation of India Ltd.POWERPOWERGRID
Reliance Industries Ltd.OIL & GASRELIANCE
SBI Life Insurance Company Ltd.FINANCIAL SERVICESSBILIFE
Shree Cement Ltd.CEMENT & CEMENT PRODUCTSSHREECEM
State Bank of IndiaFINANCIAL SERVICESSBIN
Sun Pharmaceutical Industries Ltd.PHARMASUNPHARMA
Tata Consultancy Services Ltd.ITTCS
Tata ConsumersCONSUMER GOODSTATACONSUM
Tata Motors Ltd.AUTOMOBILETATAMOTORS
Tata Steel Ltd.METALSTATASTEEL
Tech Mahindra Ltd.ITTECHM
Titan Company Ltd.CONSUMER GOODSTITAN
UPL Ltd.FERTILISERS & PESTICIDESUPL
UltraTech Cement Ltd.CEMENT & CEMENT PRODUCTSULTRACEMCO
Wipro Ltd.ITWIPRO

RETURNS: Since its inception, Nifty 50 has generated an annualized return of about 11%. Let’s say you’ve invested Rs. 1 lakh on Jan 1, 2002 in Nifty 50, so Today the value of your investment will be about Rs. 12.8 lakh on Dec 31, 2020, which means YoY growth of about 15.2 per cent in 18 years.

There are different sectoral indices like NIFTY Bank, NIFTY IT, NIFTY Pharma, NIFTY Auto, Nifty Metal, Nifty Energy, Nifty FMCG etc.

What is Sensex?

SENSEX is an index reflecting price movement of 30 different Stocks of Companies listed on BSE.

Sensex was First Published in 1986. Sensex or Sensitivity Index of BSE is an index used to measure the Performance of Top 30 well-established and financially sound companies listed on the BSE, covering around 12 Sectors. These Top 30 Companies are 30 Companies with Highest Free – Float Market Capitalization on the Bombay Stock Exchange (BSE).

Sensex 30 Companies- Constituents of Sensex 30 (2021)

Scrip CodeCOMPANY
500820Asian Paints Ltd
532215Axis Bank Ltd
532977Bajaj Auto Ltd
500034Bajaj Finance Ltd
532978Bajaj Finserv Ltd
532454Bharti Airtel Ltd
500124Dr Reddy's Laboratories Ltd
532281HCL Technologies Ltd
500180HDFC Bank Ltd
500696Hindustan Unilever Ltd
500010Housing Development Finance Corp
532174ICICI Bank Ltd
532187IndusInd Bank Ltd
500209Infosys Ltd
500875ITC Ltd
500247Kotak Mahindra Bank Ltd
500510Larsen & Toubro Ltd
500520Mahindra & Mahindra Ltd
532500Maruti Suzuki India Ltd
500790Nestle India Ltd
532555NTPC Ltd
500312Oil & Natural Gas Corp Ltd
532898Power Grid Corp of India Ltd
500325Reliance Industries Ltd
500112State Bank of India
524715Sun Pharmaceutical Industries Ltd
532540Tata Consultancy Services Ltd
532755Tech Mahindra Ltd
500114Titan Co Ltd
532538UltraTech Cement Ltd

If the Sensex goes down, this tells you that the stock prices of most of the Top stocks on the BSE has gone down. If Sensex goes Up, it means that most of the major stocks in BSE went Up during that time.

Returns: Rs 1 lakh invested in Sensex at the Time of inception would have been Rs 5.0 Crore on 3 Feb 2021

Nifty Vs Sensex – Difference Between Nifty and Sensex

Nifty and Sensex are stock market indices used to measure the strength of the Indian stock market. While both are measured almost using the same formula, there are a few variations between the two market indices.

Basis Of DIFFERENCENiftySensex
Owned ByNational Stock Exchange (NSE) & IISLBombay Stock Exchange (BSE)
Full FormNational FiftySenstivity Index
First Published22 April 19961 January 1986
ConstituentsNifty 50 constitutes of the top 50 companies of NSE.Sensex comprises the top 30 companies of BSE.
Sectors CoveredNifty is a broader market index that covers around 24 sectors.Sensex covers around 12 sectors only.
Nifty Vs Sensex

I Hope you are now well aware about Difference between Nifty and Sensex. Don’t forget to Check our Other Blog Posts. Happy Investing!

Which is better Sensex or Nifty 50?

If you compare the Historical data of Performance of Nifty vs Sensex, then Sensex has performed better than Nifty, over the last decade.

What is Nifty Next50 or Nifty Junior Index?

NIFTY Junior, is an index of 50 companies whose Market capitalisation comes after that of the companies in NIFTY 50.  These are 51-100 Companies in descending order of Market Capitalization.

What is Nifty Bank Index?

NIFTY Bank or NIFTY Bank is an index that focuses solely on the banking sector. It is the second most tracked index after the Nifty Index. The index is made up of 12 stocks in the banking sector. The NIFTY Bank Index has become increasingly significant due to the high financial weighting of the index.

What is Nifty Auto Index?

The Nifty Auto Index is designed to reflect the behavior and performance of the automotive sector, including car and motor vehicle manufacturers, heavy-duty vehicles, car ancillaries, tyres, etc. The Nifty Auto Index consists of 15 stocks listed on the National Stock Exchange.

What is Nifty IT Index?

The NIFTY IT index captures the performance of Indian IT firms. The NIFTY IT Index consists of 10 companies listed on the National Stock Exchange (NSE).

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