Stock Market BasicsLesson 9 of 100About 5 minutes

Nifty vs Sensex

The Nifty 50 and Sensex are both market barometers, but they track different groups of large companies on different exchanges.

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Introduction

Two indexes, two groups of shares

Nifty 50 and Sensex are popular Indian stock-market indexes. Each follows a selected group of large companies and gives people a quick way to see how that group is doing overall.

The short answer

Nifty 50 follows 50 selected companies listed on NSE. Sensex follows 30 selected companies listed on BSE. They are indexes, not exchanges or individual shares.

The main differences

A simple side-by-side view

Both are indexes of selected companies, but they have different groups and index rules.

Compare
Nifty 50
Sensex
Associated exchange
NSE
BSE
Number of companies
50 selected companies
30 selected companies
What it shows
Overall movement of its selected companies
Overall movement of its selected companies

Some companies may be included in both indexes. Each index has its own selection and weighting rules.

Why they can move differently

Different shares have different effects

An index is influenced by the companies in it and how much weight each company has.

The two indexes do not contain exactly the same companies, and a company can have a different weight in each index. If the larger-weighted companies in one index rise or fall more, that index may move by a different amount.

Illustrative example

If Nifty 50 rises by 1% and Sensex rises by 0.8% on the same day, it means their selected groups had different overall movements. These figures are only an example, not live market data.

Remember

A rising index does not mean every company in it—or every share in the market—has risen.

How to compare them

Compare percentage changes, not points

Their point values use different index calculations and base values.

Nifty 50 and Sensex have different point values, so comparing those numbers directly does not tell you which performed better. To compare how they performed, look at their percentage changes over the same time period.

For example

A 1% rise in either index describes its change relative to its own starting value. It does not mean the two indexes rose by the same number of points.

Key points

What to remember

  • Nifty 50 tracks 50 selected companies listed on NSE.
  • Sensex tracks 30 selected companies listed on BSE.
  • Some companies may be included in both indexes.
  • Their company groups and weights are different.
  • Compare percentage changes over the same period, not point values.
  • Neither index guarantees returns or represents every share.

This lesson is for education only, not personalized financial, tax, or investment advice. Investments in securities are subject to market risks.

Test yourself

5-question quiz

Choose one answer for each question, then check your score.

  1. 1.What does the Nifty 50 track?
  2. 2.How many companies does the Sensex track?
  3. 3.Can Nifty 50 and Sensex include some of the same companies?
  4. 4.Why can the two indexes move differently on the same day?
  5. 5.What is a better way to compare their performance over a period?

Answer all five questions to see your score.