BSE vs. Nifty Of India

Difference Between BSE and Nifty Of India

BSE (Bombay Stock Exchange) and Nifty which refers to the National Stock Exchange Index (NSEI) are two terms that are associated with stock exchanges in India. BSE and NSE (National Stock Exchange) are the stock exchanges in India that have the most wide spread operations.

Nifty meaning National (N-) Fifty (-ifty) / the Standard & Poor’s CRISIL NSE Index 50 / S&P CNX is the leading stock index of the National Stock Exchange for large Indian companies which is made up of the stock index of 50 companies that accounts for about 23 sectors of Indian economy, and about 60% of the entire market capitalization of the National Stock Exchange. It exposes the investment managers to the Indian market in a single portfolio. It is meant for a variety of purposes like indexing funds, index based derivatives, benchmarking fund portfolios etc. The base value of the index is 1000.

BSE or Bombay Stock Exchange is one of India’s as well as Asia’s oldest and major stock exchanges. It is 4th largest stock exchange in Asia and the 9th in the world and has more than 5000 companies whose equity market capitalization total is about $1.63 trillion (a data till December 2010). Sensex (Sensitivity Index) of BSE is a method to calculate its overall performance and includes 30 companies from different sectors and is the key factor of the domestic stock markets in India.

BSE is a stock exchange however Nifty is the index of National Stock Exchange.

BSE the biggest stock exchange in India is the ideal place to be if someone wants to have a clear picture about Indian economical status. NSE does this as well, but there are more companies who are listed in the BSE.

Nifty, the stock index of NSE includes 50 of the largest trading companies in NSE while Sensex have 30 large companies in the list of BSE. Thus nifty is a bigger representative of the market due to its broader base.

BSE and NSE along with Sensex and Nifty represent how good or bad the Indian economical situation is. While BSE’s list is good enough to refer to, NSE offers another dimension to the Indian economy with Nifty.

 

 

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