Difference between Nifty and Sensex
There are two primary stock exchanges that are currently operational in India - the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Both of these exchanges are completely electronic and together feature more than 7,000 companies. On every single trading day, millions of trades take place on both of these exchanges. Since these exchanges are electronic, you would need a free demat account to take part in the trading process.
With such a large number of companies listed on these exchanges, it is nearly impossible to keep track of the movement of the stock market in its entirety. And so, to make the process easier, the stock exchanges came up with the concept of indices. One look at these indices is more than enough for an individual to determine which way the market is moving.
In India, there are two stock indices that help traders and investors track the movement of the stock market - Nifty and Sensex. To understand the specifics of these two indices and the differences between them, let’s quickly run through the concept of an index.