There are two major Exchanges in Indian stock market . First is Bombay Stock Exchange (BSE) and other is National Stock Exchange (NSE) . There are two index index in India Sensex which is standard index of BSE and Nifty which is index of NSE.
What is Sensex ?
Sensex is standard index of top 30 stocks listed on Bombay stock exchange . The word Sensex is combination of two words “Sensitive” and “Index” . BSE is a oldest stock exchange in Asia which was established in 1875. Sensex is introduced in 1986 which contains top 30 most traded stocks on BSE among 5000 stocks listed in market. If this 30 stocks goes up Sensex will go up and if this stocks goes down Sensex will go down. It was started from base value of 100 initially now it has reached level of 55000. Sensex is used by Indian and foreign investors to analysis movement of Indian stock market.
Criteria to get into Sensex
Criteria for stocks to get into Sensex is as follows .
- The company must a Bombay Stock Exchange listed Company.
- It must a large cap company .
- Shares of the company must be highly liquid , easily available to buy and sell .
- Company must be market leader in their respective sector .
Major milestones of Sensex
Sensex touched level of 1000 first on in 1990 and level 2000 on year 1991.It reached level of 5000 in year 1999 . In early 2000s Sensex reached level of 10000. It reached level of 20000 in just next 1 year due to bull market . It has reached level of 30000 in year 2015 and 40000 in 2019 .
Difference between Sensex and Nifty
Sensex and Nifty are the most important terms in stock market . Only difference between them is Nifty is a Index of National Stock Exchange and Sensex is standard index of Bombay Stock Exchange . Nifty contains 50 companies which are listed on NSE and Sensex has 30 companies . Sensex was established in year 1978 at the base value of 100 and Nifty was started from base price of 1000.
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