Market Mechanics4 min read
What are the Nifty and the Sensex?
Two index numbers that summarise the mood of the market in a single figure. Here is what they actually track.
An index is a basket of stocks bundled into one number so you can gauge how the market is doing at a glance. India's two headline indices are the Nifty 50 and the Sensex.
Nifty 50
The Nifty 50 tracks 50 of the largest, most-traded companies on the NSE across sectors. When people say 'the market was up today', they usually mean the Nifty.
Sensex
The Sensex, or Sensitive Index, tracks 30 large companies on the BSE. It is India's oldest index and moves broadly in step with the Nifty.
Weighted, not equal
Both indices are weighted by size, so bigger companies move the number more. That is why a handful of heavyweights can push the index up even when most stocks are flat.
Frequently asked
- What is Bank Nifty?
- Bank Nifty is a sub-index that tracks the most liquid banking stocks, used to gauge the health of the banking sector specifically.