What Are Sensex and Nifty50?


Anyone who has a passion for investing is very well aware of the term—SENSEX. Sensitive and Index are two terms coined by market experts. Sensex is India’s first exchange company that lists the exchange close to around 6000.

Sensex denotes the most popular market index of 30 companies that are listed under the Bombay Stock Exchange. Sensex does not count every company available in the market; it only accommodates some biggest companies with the most active trade stocks which is the main reason that having an idea of sensex share price is important.

Also, Nifty consists of 50 companies in its clan through which the company has got their name that is NIFTY50. Nifty 50 was known as CNX Nifty. Nifty50 has received many awards too.

Some NIFTY 50 companies that are listed under the stock exchange index include Axis Bank, Asian Paints, Bajaj Finance Bharti Airtel, Coal India, HCL Technologies, Hindustan Unilever, and many more such renowned companies. The company’s growth from stock exchange between one company to another is measured by Sensex.

How are these companies selected under the index?

A major point to be noted on how these companies have made their name on the list of Sensex? There are various criteria on which these companies are shortlisted like:

  • The companies are required to be listed under the Bombay Stock Exchange in India.
  • It must consist of Mega cap stocks.
  • The company should be relatively liquid.
  • The company should generate a good amount of earnings for its core activities.
  • Companies must have an active contribution to the country’s equity market.

These are several points that every company must follow to get its renowned name listed.

Ever since Sensex opened up in the late 90s, it has truly gained a good name in this field. However, rapid growth is witnessed in 2000.

The tech companies helped the index in crossing the mark of 6000 is truly remarkable.

Afterward, the score is increasing and has become a plus point for the surplus growth of the country.

How index is calculated?

Bombay Stock Exchange modifies the Sensex shares from time to time. It is done to maintain the present condition of the stock market. Also, by doing this modification, it helps in generating adequate techniques to understand the necessary requirements for making more profit. 

It was performed before 2003. After 2003, the method is modified again, the calculation now integrates a free float capitalization method.

It is an alternative method of market capitalization in which a company’s outstanding shares, the number of shares fornicating the index. By this free float capitalization method, the index demonstrates the free float value of all the listed 30 companies.

How does 5paisa promote self-investment?

5paisa is an online stock broker that gives various discounts. It is a part of NSE, BSE, MCX, and MCX-SX. The role of 5paise is to promote self-investment and ensures 100% of operations are executed digitally.

It is an initiative to make transactions easier within one Demat account. It makes investments hassle-free with much efficiency.