Sensex and Nifty: Understanding the Fundamental Distinction.

India’s two main stock exchanges are the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). These two are among Asia’s largest stock exchange surpassed only by the stock exchanges of Japan and China.

If you want to know how the stock market is doing, you can look at two things:
Nifty and Sensex.
They are like scores that show how well the companies are doing. Nifty is for the National Stock Exchange, which has 50 companies. Sensex is for the Bombay Stock Exchange, which has 30 companies.
The higher the score, the better the market.

Lets move in details to understand this

Which is better, Nifty or Sensex?
There is no clear answer to this question. They both show how the market is doing, but in different ways. Nifty has more companies, but Sensex has done better overall.

What are Nifty and Sensex in simple terms?
Nifty and Sensex are like grades for the stock market. They tell us how well the companies are doing. Nifty is for the National Stock Exchange, and Sensex is for the Bombay Stock Exchange.

What’s the main difference between Sensex and Nifty?
The main difference is the number of companies they look at. Sensex looks at 30 companies, and Nifty looks at 50 companies.

Which one came first, Sensex or Nifty?
Sensex came first, and it has a history of doing well, even though Nifty looks at more companies.