Can anyone tell me what is SENSEX and NIFTY and what does it show?

Question

Can anyone tell me what is SENSEX and NIFTY and what does it show?

Answer 1

Sensex and Nifty are indexes. There are several such indexes in Mumbai Stock Exchange and National Stock Exchange.

The most commonly used are BSE 30 aka sensex and NSE Nifty 50.

It is used to guage the sentiments generally.

It is also a leading indicator

It shows how the weighted average of the shares in the index are at X point of time.

Since the components of the index are  the cause for the movement for the sensex it may indicate how the individual stocks move also.

Futures of the index also may reflect the potential movement for the index as well as individual stock component.

Answer 2

The BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks with the base April 1979 = 100. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies account for around one-fifth of the market capitalization of the BSE.

The base value of the sensex is 100 on April 1, 1979, and the base year of BSE-SENSEX is 1978-79.

At irregular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.

The index has increased by over ten times from June 1990 to the present. Using information from April 1979 onwards, the long-run rate of return on the BSE Sensex works out to be 18.6% per annum, which translates to roughly 9% per annum after compensating for inflation.[1]

The Standard & Poor's CRISIL NSE Index 50 or S&P CNX Nifty nicknamed Nifty 50 or simply Nifty (NSE: ^NSEI), is the leading index for large companies on the National Stock Exchange of India. The Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

Answer 3

no