Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Why difference in SENSEX and NIFTY points?

Minu Sharma (Artcle) (286 Points)

01 November 2013

Please help me. Why Sens*x Point is around 21000 and Nifty point is around 6000??????

what does 21000 and 6000 indicate

Reply
Follow
Share

6 Replies

CA Anoop Dangwal (CA, M.com, B.com,) (899 Points)
Replied 01 November 2013

Its due to year of formation. Sens*x is much more older than Nifty, and as per market capitalization, sens*x or Nifty points is calculated. Suppose, Reliance industry formed in 2000 with base price of share, lets assume 100. Now, in 2013 due to market capitalization , market price of share 2400. Other company Reliance telecommunication formed in 2006 with share price of 100. Now in 2013, market price of share 800. Difference is year of formation of two.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

RAMESH CHANDRA SHARMA (munka istentisztelet) (899 Points)
Replied 01 November 2013

Originally posted by : CA ANOOP DANGWAL
	Its due to year of formation. Sensx is much more older than Nifty, and as per market capitalization, sensx or Nifty points is calculated. Suppose, Reliance industry formed in 2000 with base price of share, lets assume 100. Now, in 2013 due to market capitalization , market price of share 2400. Other company Reliance telecommunication formed in 2006 with share price of 100. Now in 2013, market price of share 800. Difference is year of formation of two.

well said....but rather than saying year difference ...u can say the market capitalization is the main point of difference between them.......

here we calculate sens*x ..for the first time in year 1978

sens*x= base market value*current market capitalization/old market capitalization

bae market value = 100

old market capitalization is the capitalization in year 1978

nifty ....first time in year 1995

formula is same

nifty= base value (1000)* CMP/market capitalization in the year 1995

but now there is some change in calculating the index.....now it is calculated on FREE FLOAT MARKET CAPITALIZATION RATHER THAN FULL MARKET CAP.....

1 Like

Pranjal Mittal (Student) (90 Points)
Replied 03 November 2013

thank u all for this valuable input

mahesh (ca) (138 Points)
Replied 04 November 2013

The Sens*x is an indicator of all the major companies of the BSE. Sens*x represents the top stocks of the BSE .It comprises of 30 stocks which are listed in BSE
The Nifty is an indicator of all the major companies of the NSE. Nifty represents the top stocks of the NSE. it comprises of 50 stocks which are listed on the NSE.

1 Like

daltonsalford (Accountant) (30 Points)
Replied 13 August 2014

The Sens*x is an indicator of all the major companies on the BSE, where as Nifty is an indicator of all the major companies of the NSE.

forex rebate

Upgrade to CAclubindia Pro. Subscribe Now!

TarunGupta (Student) (48 Points)
Replied 04 October 2022

If you look at the value of the Nifty and Sens*x, you will see that the Sens*x is approximately three times the Nifty. The primary reason for this difference is that the Sens*x is an older index than the Nifty. The BSE started calculating the Sens*x in 1978-79, taking 100 as the base value. In compassion, the Nifty’s base year and value are 1995 and 1000, respectively. By the time the Nifty was introduced, the Sens*x had already crossed 3000 points. Since 1995, if you calculate the growth of both indices, taking 1995 as the base year, you find that the growth is more or less proportional. To learn more about the Sens*x Nifty, consider reading the web article on the difference between the Sens*x and Nifty by IIFL Securities.

Click here to know more:-

https://www.indiainfoline.com/knowledge-center/share-market/what-is-sens*x-bse-nse-nifty