2024-02-07 07:59:18
What is difference Between Nifty and Sensex
pWhat is NIFTY, SENSEX in stock market? Before knowing that economically. Let us see a simple explanation for it first.
A Comparison of Stock Market and Vegetable Market: Let us take the vegetable market. There are two vegetable markets near your house. Various vegetables are sold there. In both vegetable markets, a code has been prepared. The indices are based on the most selling vegetables in that vegetable market.
According to the most sold vegetables, a proportion has been fixed for each vegetable. Therefore, the vegetable market index has the following proportion. Potato – 35% Onion – 20% Tomato – 20% Amla – 15% Aubergine – 10% Now let’s say the value of another vegetable market index is 100.
Let’s say that during the festival season, the price of vegetables increases for a week. Then, when the value of the vegetable market index of 100 is 120, it will be known that the price of vegetables is favorable. When the value of the vegetable market index of 100 goes down to 80 due to the monsoon season, it is clear that the price of vegetables is low.
As seen in the movie Winner, if the hand pull is so much, it is decided how much the opponent has bought, if the big vegetables index has decreased so much, other small vegetables like Noonkool, Coriander, Bhanukai, etc. can be known through the vegetable market index.
Similarly, there are two stock exchanges in India. Bombay Stock Exchange, National Stock Exchange. Stocks are bought and sold in these. Both the stock markets are dominated by two indices, the most traded of which depend on large stocks like Hero Honda, Wipro and Infosys with high market capitalization.
Bombay Stock Exchange ( Bombay stock exchange) – Sensex index (Sensex index) – based on 30 major companies.
National Stock Exchange (National stock exchange) – Nifty Index (NIFTY 50 index) – Belongs to 50 largest companies.
Through these stock market indices, one can know the status of the stock market. If the stock market index is on the rise, it can be said to be a favorable situation for companies in India. If the stock market index falls, it can be known that the situation is not favorable for the companies.
A healthy stock market is good for companies. The stock market is an indicator of the economy. Stock market condition can be known by depending on the stock market indices.
#difference #Nifty #Sensex