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An Index is used to capture the overall sentiments of any market. In India there are 17 approved exchanges for equities and commodities. Out of which BSE and NSE are very popular and active exchanges in India. The indices used by these exchanges are Sensex and Nifty respectively. But when both the index is used to capture the sentiments of Indian Stock Markets then it may pose a question in the minds of investors and traders that if both the exchanges are doing the same activities then what are the key differences in these indices or these indices are same? Well the following articles mainly tries answer the question , what is sensex & nifty and also what are the major difference between Nifty and Sensex.

Nifty Vs Sensex

Nifty Index: Nifty aka Nifty 50 is the index which is used to capture the sentiment of Indian equity markets. The index is the composition of 50 companies and The index is composed of large cap companies following the free float market capitalization methodology.  Sensex 30: Sensex is the index capturing the overall market activities at BSE. Sensex is composed of 30 companies and 31 stocks following the free float market capitalization methodology. Although both Sensex and Nifty captures the sentiments of Indian equity markets but there are some differences between Nifty and Sensex.

Difference Between Nifty and Sensex
Basis	Nifty	Sensex
Derived from	Nifty got its name from National Fifty. So the full form of Nifty is National Fifty.	Sensex derived its name from sensitive index i.e. Sensitive Index is the full form of Sensex.
Composition	Nifty is calculated after considering 50 stocks	Sensex is calculated after considering 31 stocks
Sectors Covered	Nifty covers 24 different sectors	Sensex captures the sentiments of 12 sectors
Date of Commencement:	Nifty was established on April 21, 1996	Sensex was established on September 1, 2003
Base year	Base year of Nifty is 1995 with the base value of 1000	Base year of sensex is 1978-79 with the base value of 100
Trading on Foreign exchanges	Nifty is traded on Singapore exchanges as SGX Nifty and on Chicago Mercantile Exchange as CME Nifty	Sensex is traded on Dubai Gold and Commodity Exchange, DGCX
Operated by	Nifty is maintained by India Index Services and Products , which is a subsidiary of NSE	Sensex is maintained by BSE
Market Capitalization	NSE market capitalization is around 29%	Sensex 30 Index share of BSE market capitalization is around 25%

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