subject: Nifty Option Trading Example - Sensex and Nifty [print this page] Nifty Option Trading Example Nifty Option Trading Example
The terms Sensex and Nifty has been added to the household vocabulary in the current decade. One often comes across these terms at least once in a day. The news channels also keeps flashing these terms on their side bars and scrolls. This also has become an important part of any news broadcast. 'Sensex and Nifty literacy' has become very essential now. So what is Sensex? And what is Nifty? Basically these are indexes which act as barometers of the stock market. In a nut shell, it tells about the performance of majority of traded stocks. Nifty Option Trading Example
In India there are two major stock exchanges, Bombay Stock Exchange ( BSE) and National Stock Exchange ( NSE). The index of the BSE is called as Sensex and the index of NSE is called as Nifty. The difference between bse and nse is they both are different stock exchanges.
1) Sensex - It is popularly callled as BSE Sensex or BSE Sensitive Index. It comprises of 30 stocks which are listed in BSE.
2) Nifty - It is popularly called as NSE Nifty. It comprises of 50 stocks which are listed on the NSE.
The 30 stocks that are included in the Sensex, provide a sample of the entire market. To elaborate, the 30 stocks that are included are a sample. It represents the total effect of all the stocks that are listed in the BSE.
Similarly, Nifty is the representation of all the stocks listed in the NSE. It comprises of 50 shares. Nifty Option Trading Example
The difference bewteen Sensex and Nifty is they are different indexes which measure the performance of the stock market. S
Sensex has gone up - What does that mean
Often one comes across the news - Sensex has gone up by 100 points and Nifty has gone up by 50 points. This basically means on an average the 30 shares in BSE and 50 Shares in NSE have performed well. Individual stock prices should have increased and decreased. But majority of the stock prices in the list of 30 for BSE and 50 for NSE have increased.
Similarly another news - Sensex has gone down by 60 points and Nifty has gone down by 30 points, basically means on an average the 30 shares and 50 Shares have performed negatively. Individual stock prices should have decreased and increased. But majority of the stock prices in the list of 30 for BSE and 50 for NSE have decreased.
Apart from these indexes, there are many other indexes which are used to gauge the performance of various industry stocks. For example - BSE IT or BSE Bankex shows how the IT companies and banks listed in BSE performed.
All these stocks in these indexes are selected through a mechanism and certain criteria. So, Sensex and Nifty are no longer a mystery now! Nifty Option Trading Example
