What is difference between Sensex and Nifty?
Whenever there is a discussion about share market, sensex and nifty terms are used. It is mostly heard that sensex increase and nifty fall down. There is a difference between these two terms.
Definition of Sensex
Sensex is the abbreviation of Bombay Exchange Sensitive Index. It was started on 1 January, 1986. The term ‘Sensex' was given by an IIT graduate, Deepak Mohoni, who was a stock market analyst of India. It consists of those top thirty companies which are actively traded stocked on Bombay Stock Exchange (BSE). Calculations are made on the basis of free-float capitalization technique. The figure provided by sensex shows the relative prices of shares of such companies. It is considered as heartbeat of local stock markets of our nation. In simple language, it can be called as ‘Index' or ‘Indicator' of performance of companies listed at BSE. When sensex is up, then it means that stock price of such companies have gone up or increased. On the other hand, when sensex falls down, then it means that stock price have falled down or decreased.
What is Nifty
Nifty word is made from N+ fifty. Nifty 50 indicates main companies of National Stock Exchange's Fifty. It shows the index computed by the performance of top stocks listed on National Stock Exchange.Difference between Sensex and Nifty.
However, the purpose of both Sensex and Nifty is similar, i.e. to tell the position of stock market.
What all you explained is correct , just one correction. Nifty is the index of NSE(National Stock Exchange) and NSE as well is situated in Mumbai as is BSE(Bombay Stock Exchange).
BSE is situated at Dalal Street(Hutatma Chowk earlier Flora Fountain Area).
NSE is situated in BKC(Bandra Kurla Complex).