What are the Sensex & the Nifty?
The Sensex is an "index". What is an index? An index is
basically an
indicator. It gives you a general idea about whether most of the stocks
have gone up or most of the stocks have gone down.
The Sensex is an indicator of all the major companies of the BSE.
The Nifty is an indicator of all the major companies of the
NSE.
If the Sensex goes up, it means that the prices of the stocks of most
of the major companies on the BSE have gone up. If the Sensex goes
down, this tells you 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.
Just in case you are confused, the BSE, is the Bombay Stock Exchange
and the NSE is the National Stock Exchange. The BSE is situated at
Bombay and the NSE is situated at Delhi. These are the major stock
exchanges in the country. There are other stock exchanges like the
Calcutta Stock Exchange etc. but they are not as popular as the BSE and
the NSE.Most of the stock trading in the country is done though the BSE
& 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.
There is an index for the metal stocks. There is an index for the FMCG
stocks. There is an index for the automobile stocks etc. If you are
interested in knowing how the SENSEX is actually calculated...you must
check-out our "How
to calculate BSE SENSEX?" article!
But, before we go ahead and try to understand "How to make money in the stock market?" you MUST read the next page....
Next - 3 things every stock investor MUST remember >>
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Table Of Contents
- What are stocks?
- Why do companies issue stocks?
- What causes stock prices to change?
- What are the Sensex and the Nifty?
- 3 important things that every investor MUST remember!!
- How to decide which stocks to buy?
- Basics of fundamental analysis!
- Earnings
per share (EPS) ratio and what it means?
- Price
to earnings (P/E) ratio and what it means?
- PEG
ratio and what it means?
- Inflation
and how it silently eats your money!
- Brokerage and taxation…