Stock Market | What Is Nifty And Sensex In Stock Market?

What are the Sensex & the Nifty?
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.

TheS&P CNX Nifty
The Standard & Poor's CRISIL NSE Index 50 or S&P CNX Nifty nicknamed Nifty 50 or simply Nifty (NSE: ^NSEI), is the leading index for large companies on the National Stock Exchange of India. The Nifty is a well diversified 50 stock index accounting for 23 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds. Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL has a marketing and licensing agreement with Standard & Poor's.The S&P CNX Nifty covers 23 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio.The S&P CNX Nifty stocks represent about 60% of the total market capitalization of the National Stock Exchange (NSE).The index is a free float market capitalisation weighted index. From inception, the index used full market capitalisation as weight assigned to different constituents. From June 26, 2009, the index is computed based on free float methodology. As of November 2010, top four scrips in the index (Reliance Industries, Infosys Technologies, ICICI Bank and Larsen & Toubro) account for about one third of the weight in the index whereas the top eight scrips account for about half the weightage in the index.The base period for the S&P CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of NSE's Capital Market Segment. The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion.

Getting A Good Stock Market Consultancy

If you are an investor and trade in intraday term then it is very important to get a good advisory about the stock market so that by using the tips of that firm you can get profit on intraday basis.

As discussed that one needs to have a good and experienced stock market consultancy that can show you the right direction where to invest in the stock market and when to invest. This is very important when you wish to invest all your hard earned money. They can offer you share tips about the stock market. The worst thing that most investors do is that they consult their friends who do not have any idea about the current market scenario. They give them the wrong advice and at the end of the day they lose all their hard earned cash in the market. So be sure that the consultancy you have approached is the right one for you. You should be able to spend some money as your consultancy fees. Unless you get a good consultant it would be impossible for you to get good benefits from the investments that you have made in the market. There are also frauds in the market who try to befool you regarding the stock market. So beware of these people who would ruin you financially.

There are people who do not deal in stocks but they prefer to trade the NIFTY. They invest with the hope of getting good returns from the stock market. Here you can get all the good as well as the bad news that is reflected in the market. There is also no demat cost. So, it is necessary to know about nifty index when one chose to invest in the stock market. Make sure you have a good idea about everything that is important in the stock market.