Understanding the Role of Nifty 50 and Sensex in India’s Financial Market
India’s stock market is often viewed as a barometer of the country’s economic health. Among the many indices that investors track, the Nifty 50 and the Sensex stand out as the two most influential benchmarks. Both have earned a reputation for capturing the pulse of the Indian equity market, guiding retail and institutional investors alike. Whether you are a seasoned trader or someone just stepping into the world of stocks, understanding these indices is crucial to making informed decisions. What Are Nifty 50 and Sensex? The Nifty 50, managed by the National Stock Exchange (NSE), represents the weighted average performance of 50 of the largest and most liquid companies across various sectors in India. Similarly, the Sensex, managed by the Bombay Stock Exchange (BSE), comprises 30 of the country’s most financially sound and actively traded companies. Together, these indices are often considered the face of the Indian stock market, reflecting not only investor sentiment but also ...