The stock market words we often hear are Sensex, Nifty. Even in the daily news, people say that the Sensex has fallen and the Nifty has collapsed. Let
what are Sensex and Nifty?
The stock market words we often hear are Sensex, Nifty. Even in the daily news, people say that the Sensex has fallen and the Nifty has collapsed. Let's look at the calculation of these.
How many points did the Sensex gain or how many points did the Nifty lose in the daily newspapers or news We keep reading or listening to the news.
Now let’s take a small example. How long have you been in a city? A friend came to your house from another town. He has something to do in your city. Early in the morning, he wants to take the car. Then you say... This is peak time traffic. How long will it be at that junction, how long will this junction be jammed, It is said that there is no traffic if you go in the afternoon instead of now.
What do we mean by this...We mainly look at the third, fourth, and tenth junctions and estimate the traffic. The Sensex and Nifty are also the same process. Gains on all stocks listed on the stock market, The exchanges took some stocks and formed indexes because it is difficult to calculate average losses.
The Bombay Stock Exchange and the National stock exchange are two major exchanges in our country These include a list of over 10,000 companies. About 5,000 companies are listed BSE. However, the transactions that take place in all of these, it is a difficult process to calculate their profits and losses and tell how the markets are doing today. That is why the two exchanges form indexes following certain parameters. Let us now see what the actual Sensex and Nifty are. To understand these first you need to know what an index is.
What is an Index?
An index is an indicator of what the stock markets are like. This means that the stock market today is in a state of profit or loss. To put it more simply, if we say that the rice is cooked or not, it is enough to take four pillows in the bowl. However, it is not possible to test every touch. The same thing happens in the stock market. There are over 5000 companies listed on the BSE (Bombay Stock Exchange) in our country. There are also about 2000 companies listed on the NSE (National Stock Exchange). Now it is very difficult to estimate how many thousands of companies have been tested if you want to see what the stock market actually looks like any day. That is why the total stock market index is calculated by taking a few companies which have the highest market capitalization in terms of each industry other than these companies and moving the shares of those companies.
What is the use of these
Information - We usually take stock market indexes as an indicator to calculate how a country's economy or companies' profits are. The fact that the market is not doing well means that losses are a sign that companies are not performing well and the economy is not doing well.
The same markets are booming... If the profits of the companies are amazing .. it means that the purchasing power of the masses is increasing and everything is continuing to be positive.
Despite disagreements over this (those who argue that it has nothing to do with the economy - the stock markets), the whole world is following the same trend.
Benchmark (Scale) -Anything needs a measure. That is, we must have a basis for measuring profit or loss. These indices are such a basis.
For example, suppose the Nifty rises 10 percent last year. It helps us to calculate whether our stock has increased or decreased by at least 10 percent. Since this index is the benchmark, we will decide the performance of our stocks and portfolios based on this. Not only retail investors but also mutual funds, HNIs, and foreign investors see this index as a key benchmark.
How the index is formed
The index stands for Composition of Stocks. That is, bringing together stocks from different sectors. All of these are companies and sectors that mirror our economy. Exchanges decide from time to time which of these to include and which to remove.
Every stock in this index has some weightage. That is, for example, if you think of all the stocks together, one hundred marks.
I will tell you more about the e-index next. If you want it now, send the I Want Index in the comment.
Now our country has two indices in particular. Sensex and Nifty. Let us first look at what is Sensex.
Sensex
The word Sensex is derived from the Sensitive Index, also known as the S&P BSE SENSEX or S&P SENSEX. The Sensex is an index that measures whether the stock markets in India are gaining or losing in a given day or at a particular time.
Of the thousands of companies traded on the Bombay Stock Exchange, take a look at the history of a company, as well as which company has the highest market capitalization, and which company performs best.
Some of the companies that affect the Sensex are:
Adani Ports
Asian Paint
Axis Bank
Bajaj-Auto
Bharti Airtel
Cipla
Coal India
Dr. Reddy’s Laboratories
HDFC
HDFC Bank
Hero MotoCorp
Hindustan Unilever
ICICI Bank
Infosys
ITC
Kotak Mahindra Bank
L&T
Lupin Limited
Mahindra & Mahindra
Maruti Suzuki
NTPC
PowerGrid Corporation of India
Reliance Industries
SBIN
Sun Pharma
Tata Motors
Tata Steel
TCS
Wipro
(There is no need to have the same companies on this list. The companies on this list may vary)
If there are more company gains in this company on a particular day, then Sensex will also rise on that day. If more of these companies lose, Sensex will lose some points that day.
In 1979 the Sensex base value was taken as 100 points .. but now the Sensex has reached 36500 .. which means you can understand how the markets have risen.
Nifty
The word Nifty comes from the word National Stock Exchange Fifty. This Nifty, NIFTY 50 is also known as CNX NIFTY. Nifty means the Nifty rises or falls based on the movement of the shares of the top companies traded on the National Stock Exchange. However, it is not clear when these companies will be the only ones on the list. Some companies will be removed from the list as well as some company names will be added.
To learn about Sensex - www.bseindia.com
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