Table of Contents
Is Sensex better than Nifty?
Sensex is more niche, and in a bullish market, top companies push its index value higher. In contrast, Nifty is broader as it has 50 companies in the index. Hence in a bullish market, the increase in the value of Nifty is lesser than Sensex. Therefore Nifty value is lesser than Sensex.
What is called Blue Chip?
The term “blue chip” comes from the game of poker, where blue chips are the highest value pieces. A company must be well-known, well-established, and well-capitalized to be a blue chip.
What does SENSEX stand for in stock market?
SENSEX stands for Stock Exchange Sensitive Index. It is the oldest stock exchange in India which is also known as BSE-30. It is a free floating stock market index which uses free floating market capitalization method to reflect the position of companies in the stock market. It does not consider the outstanding stock of a company.
What does SENSEX, BSE, NSE, and nifty mean?
SENSEX is the major index of BSE and NIFTY is the index of NSE . These indices are the weighted average of the largest mega-cap Indian companies from different sectors and measure market direction – rising SENSEX meaning the market is soaring.
What is SENSEX or Nifty?
The term Nifty is derived from ‘National Fifty’ and Sensex is obtained from ‘Sensitive Index’. Sensex is the benchmark index of BSE (Bombay Stock Exchange) and is operated by it. While, Nifty is the index of NSE (National Stock Exchange) and is operated by India Index Services Product Ltd., IISL which is a subsidiary of NSE.
How does SENSEX work exactly?
The Sensex is calculated using a free-float capitalization method. This method is similar to the market-capitalization weighting method, in which companies are weighted according to their share of the total market capitalization of the index. As such, the Sensex gives more weight to the largest companies within its index.