What is BSE & NSE in share market ?

BSE means Bombay Stock Exchange & NSE means National Stock Exchange. Both are in Mumbai, Maharastra.

What is called SENSEX & NIFTY ?

• SENSEX is also called as BSE 30 & it is the market index consisting of 30 well-established and financially sound companies listed on BSE.
• The base year of Sensex is 1978-79 and the base value is 100.
• It is an indicator of market movement.
• If Sensex goes up, it means that most of the stocks in India went up during the given period.
• If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE has gone down.

For example, suppose the Sensex is 26,000 today. If Sensex drops to 25,950 tomorrow, it means that the majority of the 30 companies financial condition is not good i.e. their share price is falling.

• NIFTY 50 is the index for companies on the National Stock Exchange of India. Nifty is owned and managed by India Index Services and Products (IISL). It represents the next rung of liquid securities after the NIFTY 50. It consists of 50 companies representing approximately 10% of the traded value of all stocks on the National Stock Exchange of India.
• The base year is taken as 1995 and the base value is set to 1000.
• Nifty is calculated on 50 stocks actively traded on the NSE. 50 top stocks are selected from 24 sectors.
• If Nifty goes up, this means that the stock price of most of the major stocks on NSE has gone up & if Nifty goes down, this tells you that the stock price of most of the major stocks on NSE has gone down.

When Sensex/Nifty increases, it shows economic growth of the country. If Sensex falls that means people are selling their shares and an economic crisis in the country.

Courtesy Trade Brains