What is SENSEX? What is NIFTY?

These two words are heard everyday in news channels and newspapers. Now for knowing these two words,we must know the meaning of indexes, BSE and NSE.

INDEXES-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.

BSE-Bombay Stock Exchange is the oldest stock exchange in Asia and has the third largest number of listed companies in the world, with 4900 listed as of Feb 2010. It is located at Dalal Street, Mumbai, India. On Feb, 2010, the equity market capitalization of the companies listed on the BSE was US$1.28 trillion, making it the largest stock exchange in South Asia and the 12th largest in the world.

NSE- National Stock Exchange (NSE) is a stock exchange located at Mumbai, India. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization of around Rs 47,01,923 crore (7 August 2009) and is expected to become the biggest stock exchange in India in terms of market capitalization by 2009 end.

SENSEX- Sensex is an index of the BSE. It is an indicator of all the major companies of the BSE. If the it 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.

NIFTY- Nifty is an index of the NSE. It is an indicator of all the major companies of the NSE. If it goes up, it means that the prices of the stocks of most of the major companies on the NSE have gone up. If the Nifty goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.