Beginner investors are often suggested to start their investment journey from the Sensex. NSE Nifty is the way forward for those who wish to trade in derivatives F&O. The NSE is a much broader market index with over 24 sectors. The Sensex, on th other hand, covers 13 sectors.
Whether Sensex is better than Nifty depends on the investor's perspective and investment goals. Sensex offers insights into 30 major companies on the BSE, while Nifty provides a broader view by tracking 50 companies on the NSE, offering more sectoral diversity.
Both indices track distinct sets of companies, but their performance can fluctuate substantially. Investors often mix their portfolios with Sensex to gauge their standing in the BSE-listed stock universe. Nifty is a benchmark for stocks, mutual funds, and investment portfolios that align more closely with the NSE.
Nse has more liquidity,which means at any given point you could easily buy or sell as compared to Bse which is less liquid. So its preferable to trade in NSE due to the liquidity ,this is by far the biggest reason .
Bank NIFTY, known for its credibility and performance, has high trading volume, providing ample liquidity for intraday trading. Volatility: Price fluctuations of a share over time. Traders prefer stocks with significant volatility, as it provides the desired price fluctuations necessary for intraday trading.
2 September 2025 मराठी निफ्टी & बँक निफ्टी विश्लेशन | Nifty Prediction & Bank Nifty Analysis #nifty
Which is better Sensex or Bank Nifty?
How is Sensex different from Nifty? The primary difference between the Sensex and Nifty is the number of companies they represent. The Sensex consists of 30 companies, while Nifty comprises 50 companies. Another difference between the two indices is their calculation method.
Beginners will usually benefit more from investing in a BSE stock, and they can move to the NSE stocks with experience. The BSE is the right choice for investing in shares of new companies. On the other hand, day traders who want to experiment with derivatives, options, and futures can choose the NSE.
What is the difference between Nifty 50 and Sensex?
Nifty 50 constitutes the top 50 companies that are actively traded in NSE. Sensex comprises the top 30 companies actively traded in BSE. Nifty is a broader market index that covers 24 sectors. Sensex covers 13 sectors.
If you're an Indian investor seeking to invest in shares of emerging companies, BSE appears as the ideal option. On the other hand, if you engage in day trading, assuming the risks of share trading with derivatives, futures and options, NSE becomes the preferred selection.
Nifty 50 is owned and managed by NSE Indices, which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited. Market Cap ₹ 1,94,13,169 Cr.
Nifty 50 is highly liquid and offers low volatility, making it suitable for long-term, passive investors. Nifty 500 offers higher diversification but also higher volatility due to its inclusion of mid and small-cap stocks, though large-caps help balance the risk.
What is Nifty? At its core, NIFTY's full form is National Stock Exchange Fifty and it represents the top 50 Indian company stocks traded on the NSE. It mirrors the market's movements, offering insights into the general market direction.
For first-time investors, the Nifty 50 Index Fund provides a hassle-free, low-cost, and diversified route to participate in India's economic growth. With exposure to high-quality companies and strong long-term return potential, it serves as an ideal option for any investment portfolio.
Think of the NIFTY 50 as India's headline act. It represents the top 50 companies on the NSE, selected based on their free-float market capitalisation. That means only the shares actively available for trading are counted—not those locked in with promoters.
The compounded annual growth rate (CAGR) of 10 years for Nifty 50 has been 11.2% (as of 17 Aug 2025). However, its 1-year CAGR is only 2.03% (as of 17 Aug 2025). This proves that the Nifty 50 is a wealth creation machine if invested for the long term.
The NIFTY index is calculated using a free-float market capitalisation-weighted methodology. This means that the weight of each stock in the index is determined by its market capitalisation, but only the free-float shares are considered. Free-float shares are those shares that are available to the public for trading.
Trading carries significant risks, including the potential loss of your initial capital or more. Most traders lose money, and trading is not a guaranteed path to wealth. Products like FOREX and CFDs are complex and involve leverage, which can magnify gains and losses.
Nifty 50 is ideal for investors seeking stability and reflecting the broader economy. Key Characteristics: 1. Stability and Reliability: Large-cap companies are generally more stable and less volatile.
The BSE Bankex, also known as the S&P BSE Bankex, is a vital stock market index for investors tracking the Indian banking sector. It serves as a benchmark that tracks the performance of a basket of companies classified under the banking sector by the Bombay Stock Exchange (BSE).
Stocks can be bought or sold on either exchange. To switch between exchanges on the order window, click on BSE or NSE. Did you know? The exchange toggle feature is currently only available for the equity segment.
NSE consistently records a higher trading volume, making it the preferred choice for traders and investors. BSE has limited liquidity in derivatives trading and is less popular among derivatives investors.
