Turn on any Indian financial news channel and you\’ll hear \”Sensex\” and \”Nifty\” mentioned constantly. But what\’s the difference? Which one should you use to track the market? And what do their movements actually mean for your investments? This guide explains everything clearly.
What is the Sensex?
The BSE Sensex (Sensitive Index) is India\’s oldest stock market index, launched in 1979. It tracks 30 of the largest and most actively traded companies listed on the Bombay Stock Exchange (BSE). These 30 companies represent multiple sectors of the Indian economy.
Current Sensex level (early 2025): approximately 73,000–75,000 points.
What is the Nifty 50?
The Nifty 50 (National Fifty) is maintained by the National Stock Exchange (NSE) and tracks 50 large-cap Indian companies. It was launched in 1996 and is generally considered more representative of the broader Indian market than the Sensex because it includes 50 companies across 13 sectors.
Current Nifty 50 level (early 2025): approximately 22,000–23,000 points.
Key Differences
| Feature | Sensex | Nifty 50 |
|---|---|---|
| Exchange | BSE | NSE |
| Companies tracked | 30 | 50 |
| Launch year | 1979 | 1996 |
| Base year | 1978-79 (base: 100) | 1995 (base: 1,000) |
Which Should You Track?
For daily market sentiment: either works — they move almost identically. For investing purposes: use the Nifty 50 as your benchmark. Most Indian mutual funds benchmark against Nifty 50, making it easier to compare your portfolio performance.
What Does It Mean When the Index Falls?
A 1% fall in Nifty 50 means the average value of India\’s top 50 companies fell by 1% that day. It doesn\’t mean your specific stocks fell by 1% — it\’s an average. Don\’t panic at daily movements of 1-2%. A fall of 5%+ in a single day is significant and worth paying attention to.
