Everything about sensex & nifty- what are stock market indices?

Stock market index is a thermometer that measures the health of a group of stocks. As the stocks in a group change value, the index also changes. When business environment is good, the index tends to rise. When business environment is bad, it falls.

Let’s say when I ask you how is stock market today? There are approximately 5,000 listed companies in the Bombay Stock Exchange and about 2,000 listed companies in the National Stock Exchange. It would be hard to check each and every company, figure out if they are up or down for the day and then give a detailed answer.

To help people identify whether the stock market is doing positive (performing good) or negative (performing bad), stock index was introduced. Stock index acts as a benchmark for all the stocks that are listed on the stock exchange.

There are basically 2 types of Stock indices

S&P BSE sensex representing bombay stock exchange

CNX nifty representing the national stock exchange

BSE sensex

Bombay Stock Exchange (BSE) is the oldest and the biggest stock exchange in India. Dalal Street in Mumbai is the address of the Bombay stock exchange. The benchmark index of BSE is called Sensex also called as BSE 30, consisting of 30 well established companies listed on the Bombay Stock Exchange (BSE). These 30 companies represent different sectors and are selected on the basis of the free-float market capitalization. So if Sensex goes down it tells you that the stock price of most companies in BSE 30 were down for that day.

Here is a list of 30 companies in sensex

Sr.noCompany nameIndustry
1HDFC LTDFinance – Housing
2CiplaPharmaceuticals & Drugs
3State Bank of IndiaBank – Public
4Dr. Reddys Laboratories Ltd.Pharmaceuticals & Drugs
5HDFC Bank Ltd.Bank – Private
6Hero MotoCorp Ltd.Automobile Two & Three Wheelers
7Infosys Ltd.IT – Software
8Kotak Mahindra Bank Ltd.Bank – Private
9LupinPharmaceuticals & Drugs
10Oil & Natural Gas Corporation Ltd.Oil Exploration
11Reliance Industries Ltd.Refineries
12Tata Steel Ltd.Steel & Iron Products
13Larsen & Toubro Ltd.Engineering – Construction
14Mahindra & Mahindra Ltd.Automobiles – Passenger Cars
15Tata Motors Ltd.Automobiles-Trucks/Lcv
16Hindustan Unilever Ltd.Household & Personal Products
17Asian Paints Ltd.Paints
18ITC Ltd.Cigarettes/Tobacco
19Wipro Ltd.IT – Software
20Sun Pharmaceutical Industries Ltd.Pharmaceuticals & Drugs
21ICICI Bank Ltd.Bank – Private
22Axis Bank Ltd.Bank – Private
23Bharti Airtel Ltd.Telecommunication – Service Provider
24Maruti Suzuki India Ltd.Automobiles – Passenger Cars
25Tata Consultancy Services Ltd.IT-Software
26NTPC Ltd.Power Generation/Distribution
27Power Grid Corporation Of India Ltd.Power Generation/Distribution
28Adani Ports and Special Economic Zone Ltd.Port
29Bajaj Auto Ltd.Automobile Two & Three Wheelers
30Coal India Ltd.Mining & Minerals

NSE nifty 50

National Stock Exchange (NSE) is the leading stock exchange in India. It was the first exchange in India to provide online screen based trading to investors all over the country. The index of NSE is Nifty 50, consisting of 50 well established companies in India. Nifty 50 is used by most investors, both domestic as well as foreign investors to keep track of Indian stock markets

Here is a list of 50 companies in nifty

Sr.noCompany nameIndustry
1Adani PortsTransport Infrastructure
2Asian PaintsPaints
3Axis BankBank – Private
4Bajaj AutoAutomobile – 2 & 3 wheelers
5Bajaj FinanceNBFC
6Bajaj FinservFinance – Investment
7Bharti AirtelTelecommunication – Service Provider
8Bharti InfratelTelecommunication – Equipment
10BritaniaConsumer Food
11CiplaPharmaceuticals & Drugs
12Coal IndiaCoal
13Dr. Reddy’s Laboratories Ltd.Pharmaceuticals & Drugs
14Eicher MotorsAutomobile – LCVS/HVCS
15GAILGas Distribution
17HCL TechIT Service & Consulting
18HDFCFinance – Housing
19HDFC BankBank – Private
20Hero MotocorpAutomobile – 2 & 3 wheelers
21HindalcoIron & Steel
22HULHousehold & Personal Products
23IndusInd Bank LimitedBank – Private
24ICICI BankBank – Private
25Indiabulls HousingFinance – Housing
26InfosysIT Service & Consulting
30Kotak MahindraBank – Private
31Larsen & TubroEngineering & Construction
32M&MAutomobile – Auto & Manufacturers
33Maruti Suzuki India Ltd.Automobiles – Passenger Cars
34NTPCPower Generation/Distribution
35ONGCPower Generation/Distribution
37Reliance Industries LtdRefineries
38SBIBank – Public
39Sun PharmaPharmaceuticals & Drugs
40Tata MotorsAutomobiles-Trucks/Lcv
41Tata SteelIron & Steel
42TCSIT-Service & Consulting
43Tech MahindraIT-Service & Consulting
44TitanDiamond & Jwellery
45UltraTech CementCement
46UPLPesticides & Agrochemicals
47VedantaMetals – Non Ferrous</t
48WiproIT-Service & Consulting
49Yes BankBank – Private
50Zee EntertainmentTV Broadcasting – Software Production