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.
Table of Contents
- What are Indices?
- What is Nifty (Nifty 50)?
- What is Sensex?
- Nifty Vs Sensex – Difference Between Nifty and Sensex
What are Indices?
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 General direction of Market movement. Sensex and Nifty are the market indices of 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.
What is Nifty (Nifty 50)?
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)
|Adani Ports and Special Economic Zone Ltd.||SERVICES||ADANIPORTS|
|Asian Paints Ltd.||CONSUMER GOODS||ASIANPAINT|
|Axis Bank Ltd.||FINANCIAL SERVICES||AXISBANK|
|Bajaj Auto Ltd.||AUTOMOBILE||BAJAJ-AUTO|
|Bajaj Finance Ltd.||FINANCIAL SERVICES||BAJFINANCE|
|Bajaj Finserv Ltd.||FINANCIAL SERVICES||BAJAJFINSV|
|Bharat Petroleum Corporation Ltd.||OIL & GAS||BPCL|
|Bharti Airtel Ltd.||TELECOM||BHARTIARTL|
|Britannia Industries Ltd.||CONSUMER GOODS||BRITANNIA|
|Coal India Ltd.||METALS||COALINDIA|
|Divi's Laboratories Ltd.||PHARMA||DIVISLAB|
|Dr. Reddy's Laboratories Ltd.||PHARMA||DRREDDY|
|Eicher Motors Ltd.||AUTOMOBILE||EICHERMOT|
|GAIL (India) Ltd.||OIL & GAS||GAIL|
|Grasim Industries Ltd.||CEMENT & CEMENT PRODUCTS||GRASIM|
|HCL Technologies Ltd.||IT||HCLTECH|
|HDFC Bank Ltd.||FINANCIAL SERVICES||HDFCBANK|
|HDFC Life Insurance Company Ltd.||FINANCIAL SERVICES||HDFCLIFE|
|Hero MotoCorp Ltd.||AUTOMOBILE||HEROMOTOCO|
|Hindalco Industries Ltd.||METALS||HINDALCO|
|Hindustan Unilever Ltd.||CONSUMER GOODS||HINDUNILVR|
|Housing Development Finance Corporation Ltd.||FINANCIAL SERVICES||HDFC|
|ICICI Bank Ltd.||FINANCIAL SERVICES||ICICIBANK|
|ITC Ltd.||CONSUMER GOODS||ITC|
|Indian Oil Corporation Ltd.||OIL & GAS||IOC|
|IndusInd Bank Ltd.||FINANCIAL SERVICES||INDUSINDBK|
|JSW Steel Ltd.||METALS||JSWSTEEL|
|Kotak Mahindra Bank Ltd.||FINANCIAL SERVICES||KOTAKBANK|
|Larsen & Toubro Ltd.||CONSTRUCTION||LT|
|Mahindra & Mahindra Ltd.||AUTOMOBILE||M&M|
|Maruti Suzuki India Ltd.||AUTOMOBILE||MARUTI|
|Nestle India Ltd.||CONSUMER GOODS||NESTLEIND|
|Oil & Natural Gas Corporation Ltd.||OIL & GAS||ONGC|
|Power Grid Corporation of India Ltd.||POWER||POWERGRID|
|Reliance Industries Ltd.||OIL & GAS||RELIANCE|
|SBI Life Insurance Company Ltd.||FINANCIAL SERVICES||SBILIFE|
|Shree Cement Ltd.||CEMENT & CEMENT PRODUCTS||SHREECEM|
|State Bank of India||FINANCIAL SERVICES||SBIN|
|Sun Pharmaceutical Industries Ltd.||PHARMA||SUNPHARMA|
|Tata Consultancy Services Ltd.||IT||TCS|
|Tata Motors Ltd.||AUTOMOBILE||TATAMOTORS|
|Tata Steel Ltd.||METALS||TATASTEEL|
|Tech Mahindra Ltd.||IT||TECHM|
|Titan Company Ltd.||CONSUMER GOODS||TITAN|
|UPL Ltd.||FERTILISERS & PESTICIDES||UPL|
|UltraTech Cement Ltd.||CEMENT & CEMENT PRODUCTS||ULTRACEMCO|
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 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)
|500820||Asian Paints Ltd|
|532215||Axis Bank Ltd|
|532977||Bajaj Auto Ltd|
|500034||Bajaj Finance Ltd|
|532978||Bajaj Finserv Ltd|
|532454||Bharti Airtel Ltd|
|500124||Dr Reddy's Laboratories Ltd|
|532281||HCL Technologies Ltd|
|500180||HDFC Bank Ltd|
|500696||Hindustan Unilever Ltd|
|500010||Housing Development Finance Corp|
|532174||ICICI Bank Ltd|
|532187||IndusInd Bank Ltd|
|500247||Kotak Mahindra Bank Ltd|
|500510||Larsen & Toubro Ltd|
|500520||Mahindra & Mahindra Ltd|
|532500||Maruti Suzuki India Ltd|
|500790||Nestle India Ltd|
|500312||Oil & Natural Gas Corp Ltd|
|532898||Power Grid Corp of India Ltd|
|500325||Reliance Industries Ltd|
|500112||State Bank of India|
|524715||Sun Pharmaceutical Industries Ltd|
|532540||Tata Consultancy Services Ltd|
|532755||Tech Mahindra Ltd|
|500114||Titan Co Ltd|
|532538||UltraTech 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. If you compare the Historical data of Performance of Nifty vs Sensex, then Sensex has performed better than Nifty, over the last decade. While both are measured almost using the same formula, there are a few variations between the two market indices.
|Basis Of DIFFERENCE||Nifty||Sensex|
|Owned By||National Stock Exchange (NSE) & IISL||Bombay Stock Exchange (BSE)|
|Full Form||National Fifty||Senstivity Index|
|First Published||22 April 1996||1 January 1986|
|Constituents||Nifty 50 constitutes of the top 50 companies of NSE.||Sensex comprises the top 30 companies of BSE.|
|Sectors Covered||Nifty is a broader market index that covers around 24 sectors.||Sensex covers around 12 sectors only.|
I Hope you are now well aware about Difference between Nifty and Sensex. Don’t forget to Check our Other Blog Posts. Happy Investing!
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).