Difference between Nifty 50 & Sensex - Just a small write up

Disclaimer: All information sourced from the Internet. The post is for general informational purposes only. Please use your own research before jumping to conclusions or before investing.

Personally, I am invested in Nifty 50 Index (along with few other Nifty indexes) & not in Sensex. 

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Nifty 50 constitutes the top 50 companies that are actively traded in NSE (National Stock Exchange a.k.a National, based in Mumbai, incorporated in 1996). The NIFTY 50 (National Fifty) is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the NSE. The Nifty 50 index was launched on 22 April 1996, and is one of the many stock indices of Nifty. Nifty, as a whole, is a broader market index that covers 24 sectors (and hence, is more diversified). The NIFTY 50 index covers 14 sectors of the Indian economy (as of Feb 28, 2023); earlier it was 13.

*Sensex comprises the top 30 companies actively traded in BSE (Bombay Stock Exchange, based in Bombay, incorporated in 1986 - it is a portmanteau of the words SENSitive and indEX). Sensex covers 13 sectors.

Both Nifty 50 & Sensex index are calculated based on a free float capitalisation method i.e on shares that are readily available for trading.

While the daily movement of the two indexes differs somewhat, the variations are insignificant. Because most of the
Nifty and the Sensex equities tend to overlap, both tend to follow a similar trajectory over time. No matter which
one you choose, If you have a 10 plus year investing horizon, it makes no difference. However, SENSEX might be valued
slightly higher during bullish trends (or in 5 year trends)

Year                  Nifty Returns                 Sensex Returns

2013                         6.76                                  8.5
2014                       31.39                                   29.6
2015                       -4.06                                   -5.1
2016                       3.01                                     1.97
2017                      28.65                                     27.9
2018                      3.15                                       5.9
2019                      12.02                                      14.38
2020                      14.17                                      15.75
2021                      25.94                                       24.7

2022                    4.32                                           4.4

(Source: NSE & BSE) - Returns from 2013-2021 are as per Fiscal Year while for 2022 they are as per Calendar Year (Source ET)

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