Module 2 · NSE, BSE, NIFTY, BANKNIFTY, SENSEX · 4 min
NSE, BSE and indices: NIFTY, BANKNIFTY, SENSEX
An index is one number that combines the prices of many companies. It shows the market's mood at a glance.
Two exchanges
NSE and BSE are India's two main stock exchanges. Most large companies are listed on both, so a share's price is nearly the same on each.
What each index tracks
NIFTY 50 = 50 large NSE companies. BANKNIFTY = large bank shares. SENSEX = 30 large BSE companies. FIN NIFTY = finance companies. Each index has its own list, which is reviewed from time to time.
Weight: bigger companies count more
Companies are not equal inside an index. Those with a larger free-float market value carry more weight, so 2 or 3 big names can move the whole index.
Points, not rupees
An index is measured in points, not rupees. 'NIFTY up 100 points' means the number rose by 100. Percent change is clearer: 100 points at 25,000 is only 0.4%.
How today's % is calculated
% change = (current value - previous trading day's close) / previous close x 100. On weekends or holidays you see the last trading day's change.
Quiz (3 questions)
1. SENSEX is an index of which exchange?
2. NIFTY moved from 24,000 to 24,240. What is the change?
3. Which company moves an index more?
This is for learning only, not advice on any stock or trade.