Today giving you a big knowledge of share market that is also a very important gk...............
The Sensex is an "index". What is an index? An index is
basically an indicator. It gives you a general idea about
whether most of the stocks have gone up or most of the
stocks have gone down.
The Sensex is an indicator of all the major companies of the
BSE.
The Nifty is an indicator of all the major companies of the
NSE.
If the Sensex goes up, it means that the prices of the
stocks of most of the major companies on the BSE have
gone up. If the Sensex goes down, this tells you that the
stock price of most of the major stocks on the BSE have
gone down.
Just like the Sensex represents the top stocks of the BSE,
the Nifty represents the top stocks of the NSE.
Just in case you are confused, the BSE, is the Bombay
Stock Exchange and the NSE is the National Stock
Exchange. The BSE is situated at Bombay and the NSE is
situated at Delhi. These are the major stock exchanges in
the country. There are other stock exchanges like the
Calcutta Stock Exchange etc. but they are not as popular as
the BSE and the NSE.Most of the stock trading in the
country is done though the BSE & the NSE.
Besides Sensex and the Nifty there are many other indexes.
There is an index that gives you an idea about whether the
mid-cap stocks go up and down. This is called the “BSE
Mid-cap Index”. There are many other types of indexes.
There is an index for the metal stocks. There is an index for
the FMCG stocks. There is an index for the automobile
stocks etc.