Today I'll try to explain some terms like sensex, BSE, NSE and nifty. Whenever we open stock market first we saw these names, we constantly hear the terms BSE, NSE , SENSEX, NIFTY. They form the foundation of the indian stock market. For fresher these are new words, or some know Little about it, but when we know these terms it's easy to read stock market.
In last few months i tried to learn and i want to share it with you all.
NSE, BSE are stock exchanges in india, and all the listed companies are present here. It is an electronic platform where various financial instruments, such as stocks, derivatives, ETFs, etc are listed.
And both NIFTY and SENSEX are stock market indices. A stock market index summaries the movements of the Market in real-time. A stock market index is created by grouping together similar kinds of stock.
BSE stand for Bombay stock exchange , it is the first ever stock exchange in Asia, incorporate in 1875 , headquarter located in Mumbai. Over the past 148 years , BSE has come a long way and provides trading in financial instruments like equity, currencies, debt instruments, derivatives and mutual funds.
Sensex also known as the sensitive index, is the benchmark index of BSE . It tracks 30 very large and well-established companies across different industrial sectors, which represent the Indian economic trends and stock market as a whole.
NSE stands for national stock exchange; it is the biggest stock exchange in India in terms of market capitalization. It was incorporated in 1992, recognised as a stock exchange in 1993 and started off operations in 1994, headquarter located in Mumbai.
It revolutionized the trading industry by introducing electronic or screen based trading in India.
During the year 1995-1996 , NSE launched NIFTY 50- the benchmark index of NSE. Nifty 50 tracks the 50 largest and most liquid stocks out of more than 1600 stock listed on NSE. These 50 largest companies represent different industrial sectors which collectively represent the Indian economy.
So tracking the nifty 50 will help to get a clear view of the stock market and economic trands of India as a whole.
I hope now we are clear about these terms. But these is more to learn and explore when it comes to the stock market . So I'll try to bring some more information :-)
@mysteriousroad