The Nifty 50 tracks 50 large companies on the National Stock Exchange (NSE). The Sensex tracks 30 large companies on the BSE (formerly the Bombay Stock Exchange). Both are weighted by free-float market capitalisation and both are dominated by banks, IT and energy. They usually move in the same direction, so most investors watch whichever one their news source quotes.
When Indian markets make the news, two numbers appear: the Nifty and the Sensex. They look similar and move together most days, but they are different indices from different exchanges. Here is what each one is, how they differ, and how to follow them.
What each index is
| Nifty 50 | Sensex | |
|---|---|---|
| Exchange | National Stock Exchange of India (NSE) | BSE (Bombay Stock Exchange) |
| Number of stocks | 50 | 30 |
| Weighting | Free-float market capitalisation | Free-float market capitalisation |
| Also known as | NIFTY, CNX Nifty | S&P BSE Sensex, BSE Sensex |
| Meaning of the name | National Fifty | Sensitive Index |
Both indices pick large, actively traded companies from major sectors. Constituents are reviewed periodically and replaced when a company no longer qualifies, so the lists change over time. Check the exchange or index provider for the current constituents.
How they are calculated
Both use free-float market capitalisation. A company's weight depends on the value of the shares available to the public, not on the shares held by promoters or the government. A large, widely held company has more influence than a large, closely held one.
An index level (for example 25,000) is not a price you can pay. It is a number that shows how the basket has moved against a base date. What matters is the percentage change, not the level. A 1% move in the Nifty and a 1% move in the Sensex mean the same thing for the market as a whole, even though the numbers are different sizes.
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Score a Setup Free →Why they move together
The Nifty 50 and the Sensex share most of the same large companies, especially banks, IT services, energy and consumer names. When these stocks move, both indices move. On most days their percentage changes are very close, and the gap comes from the stocks that are in one index but not the other, and from the different weights.
Which one should you watch?
- For a broad read of large Indian companies, the Nifty 50 is the more widely used benchmark for index funds and derivatives. Nifty options and futures are among the most traded index derivatives in India.
- For a quick daily headline, the Sensex is the older and better-known name.
- For other segments, both exchanges publish mid-cap, small-cap and sector indices, such as Nifty Bank or Nifty IT.
Watch one consistently. You rarely gain anything from tracking both.
Can you invest in them?
Not directly. You can invest through index funds and ETFs that hold the same stocks in the same proportions, or through derivatives. Fund costs and tracking error differ, so compare expense ratios. See expense ratios and fees.
How to follow them live
Use the prices of the stocks that drive the index, because the biggest constituents explain most of each day's move.
- NSE stocks today: prices, gainers and losers for NSE-listed companies.
- BSE stocks today: the same for the BSE.
- NSE top gainers and losers for the day's biggest movers.
For the exchanges themselves, read NSE vs BSE explained, and for how to open an account, how to buy shares in India.
Reading an index move
- Look at breadth. If the index is up but most stocks are down, a few heavy names are carrying it.
- Check the biggest weights first. A few large banks or one big IT company can swing the index.
- Compare with the currency. Foreign investors care about rupee returns in dollar terms, so a rising index can still lag in dollars if the rupee is weak. See currency risk in foreign stocks.
- Do not trade the headline. An index level tells you what happened, not what happens next. Use stops and sized risk on any trade. See position sizing.
FAQ
What is the difference between Nifty and Sensex?
The Nifty 50 is the NSE's index of 50 large companies. The Sensex is the BSE's index of 30 large companies. Both use free-float market-cap weighting and usually move in the same direction.
Which is better, Nifty or Sensex?
Neither is better. Nifty 50 is more widely used for funds and derivatives, and the Sensex is the older headline index. Pick one and follow it consistently.
How many stocks are in the Nifty 50 and the Sensex?
Fifty in the Nifty 50 and thirty in the Sensex. The exact companies change when the exchanges rebalance.
Can I buy the Nifty or the Sensex?
Not directly. You can buy an index fund or ETF that tracks it, or trade index derivatives if you are eligible.
Where can I see live Indian stock prices?
On Tradzy Markets you can see NSE and BSE stocks with prices, daily change and charts. Prices may be delayed, so check your broker before trading.
Put This Into Practice
- Score your next setup 0–100 with the Void Engine before entering
- Log the trade and tag the setup in the TradLog
- Review weekly: keep what pays, cut what doesn't
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Educational content, not financial advice. Trading involves substantial risk of loss.