WHAT IS SENSEX AND NIFTY? HOW TO TRADE IN SENSEX AND NIFTY?
If you are new in the stock market and just opened your demart account and wondering how to trade in nifty or how to trade in Sensex then, first of all, you have to know about what is Sensex and Nifty there are many other indexes like bank nifty in nifty and many others.
total number of stock exchanges in India.
So there are 23 stock exchanges in India but there are only two national-level stock exchanges one is a national stock exchange(NSE) and the other is the Bombay stock exchange (BSE) and the rest 21 are regional level stock exchanges. then what is nifty and what is Sensex. Nifty and Sensex are indexes of the national stock exchange and Bombay stock exchange indexes are the aggregate that tells the position of the whole stock market.then
What is nifty?
The word Nifty is derived from the national stock exchange fifty so this is the full form of nifty it is the index of the national stock exchange(NSE) which is the combined statistical aggregate of stocks of the top 50 companies listed in the national stock exchange(NSE). These 50 companies made nifty 50 the weightage of stocks in nifty is changed time to time by the government if the weightage of Reliance in nifty 50 is 12% it can be changed to 13 % or 10% it is up to the government to change the weightage of the stocks. When nifty 50 is started with 1000 base value now nifty is above 14500 in 2021.
What is sensex?
Sensex is the index of the Bombay stock exchange which was started with the base value of 100. It is also known as the sensitive index. Sensex is the combined index of the top 30 stocks of well-established companies. Bse can also change the weightage of the stocks according to their means.
Nifty vs sensex:
difference between sensex and nifty.
1- Nifty and sensex both are indexes of different stock exchanges.
2- Nifty is an index of the national stock exchange while sensex is the index of the Bombay stock exchange.
3- Full form of nifty if the national stock exchange fifty and the full form of sensex is a sensitive index.
4- The base value of nifty 50, when it started, is 1000 while the value of sensex when it started was 100.
5- Sensex is an old index while nifty is a new index.
6- Sensex is the combined index of the top 30 well-established companies registered in Bombay stock exchanges while nifty 50 is the index of the top 50 companies registered in the national stock exchange.
7- The current value of sensex is more than 49000 while the current value of nifty 50 is more than 14500 in 2021.
8- Sensex is operated by the Bombay stock exchange and nifty 50 is operated by the National stock exchange under the SEBI security exchange board of India.
9- volatility is high in sensex and nifty 50 volatility is low as compared to sensex.
How to trade in nifty?
There are mainly two ways to trade directly in nifty one is to buy and sell future of nifty and another way is to buy and sell options. There are two types of options in which you can trade one is put options and another one is called options. Suppose if you think that nifty will go up then you can either buy call options or sell put options and if you think that the value of nifty will go down then you can either buy put options or sell call options. The margin requirement is high in selling options but you can buy options only by paying a premium of that option.
How to trade in sensex?
You can not directly trade like nifty in sensex but you can buy trade-in options and futures of stocks in sensex.
What is Sensex and Nifty in simple words?
Sensex is the index of the top 30 companies listed on the Bombay stock exchange which shows the overall performance of the exchange while nifty is the index of 50 companies listed in the national stock exchange.
What is the full form of nifty 50?
The word nifty is derived from the national stock exchange fifty.
What is the full form of sensex?
Sensex is also known as the sensitive index it is also the full form of sensex.
How many companies are listed in the (BSE) Bombay stock exchange and the (NSE) National stock exchange?
There are more than 5000 companies listed in the Bombay stock exchange while more than 1600 companies are listed on the National stock exchange.
How can I buy nifty 50 intraday?
There are two ways to trade-in nifty 50 one is to buy or sell the future of nifty 50 and another one is to buy or sell options of nifty 50.
What is NSE and BSE?
NSE is the national stock exchange in which stocks and securities are traded and BSE is the Bombay stock exchange.
Why is the value of sensex is higher than nifty?
The current value of sensex is more than 49000 and the current value of nifty is more than 14500 so why is sensex having more value than nifty? This is because the base value of sensex is lower than the base value of nifty.
Who regulates NSE and BSE?
Security exchange board of India regulates both NSE and BSE.
we hope that by reading this article you will get to know about the basics of stock market. And if you want to know about what is FII and DII in stock market? click on the link.