Difference Between Sensex and Nifty: A Simple, Clear Explanation

Here’s an easy-to-understand breakdown of sensex vs nifty, including their structure, methodology, and sector coverage.

Understanding Nifty

Nifty, or the NIFTY 50, is the benchmark index of the National Stock Exchange (NSE). The word ‘Nifty’ itself is derived from National Stock Exchange and Fifty. It represents 50 of the largest and most liquid stocks listed on NSE, selected from across 24 different sectors, making it one of India’s broadest market indicators.

Launched on April 21, 1996, Nifty was designed to reflect the performance of India’s most actively traded companies and serve as a benchmark for index funds, ETFs, and derivatives.

How Nifty Is Calculated

Nifty uses the free-float market capitalisation weighted method, which means only the shares available for public trading are considered,  not promoter or government holdings.

Key Nifty details:

• Base year: 1995

• Base value: 1000

• Base market cap: ₹2.06 trillion

Formula:

Index Value = Current Market Value / (Base Market Capital × 1000)

This method ensures Nifty accurately reflects changes in market value based on publicly tradable shares.

Companies Listed Under Nifty

Here is the complete list of the 50 companies under Nifty (NSE):

Adani Enterprises, Adani Ports & SEZ, Apollo Hospitals, Asian Paints, Axis Bank, Bajaj Auto, Bajaj Finance, Bajaj Finserv, Bharat Electronics, Bharti Airtel, Cipla, Coal India, Dr. Reddy’s Lab, Eicher Motors, Eternal Ltd, Grasim, HCL Technologies, HDFC Bank, HDFC Life Insurance, Hero Motocorp, Hindalco, Hindustan Unilever, ICICI Bank, IOC, Infosys, ITC, Jio Financial Services, JSW Steel, Kotak Mahindra Bank, L&T, M&M, Maruti Suzuki, Nestle, NTPC, ONGC, Power Grid, Reliance Industries, SBI, SBI Life Insurance, Shriram Finance, Sun Pharma, Tata Consumer, Tata Motors Passenger Vehicles Ltd, Tata Steel, TCS, Tech Mahindra, Titan, Trent, Ultratech Cement, Wipro.

These form the backbone of major industries across the country, from banking and IT to autos, pharma, and FMCG.

Understanding Sensex

Sensex, also known as the BSE 30, is the flagship index of the Bombay Stock Exchange (BSE). Introduced in 1986, Sensex tracks 30 of the most established and financially sound companies in India. It covers 13 key sectors, making it slightly narrower than Nifty, but still highly representative of the Indian economy.

Sensex is one of the oldest indices in Asia and has served as a barometer of India’s equity market since the early days of liberalisation in the 1990s.

How Sensex Is Calculated

Sensex originally used full market capitalisation, but switched to the free-float market cap method on September 1, 2003. This aligned it with global index standards such as MSCI and FTSE.

Key Sensex details:

• Base year: 1978–79

• Base value: 100

• Base market cap: ₹2,501 crore

Free-Float Market Capitalisation = Market Cap × Free-Float Factor

Just like Nifty, this approach ensures that only publicly tradable shares influence index movements.

Companies Listed Under Sensex

Below are all 30 Sensex companies:

Adani Ports & SEZ, Asian Paints, Axis Bank, Bajaj Finance, Bajaj Finserv, Bharti Airtel, Eternal Ltd, HCL Technologies, HDFC Bank, Hindustan Unilever, ICICI Bank, IndusInd Bank, Infosys, ITC, Kotak Mahindra Bank, L&T, M&M, Maruti Suzuki, Nestle, NTPC, Power Grid, Reliance Industries, SBI, Sun Pharma, Tata Motors Passenger Vehicles Ltd, Tata Steel, TCS, Tech Mahindra, Titan, Ultratech Cement.

These companies are among the oldest, largest, and most actively traded stocks in the Indian market.

Sensex vs Nifty: Key Differences

Conclusion

Both indices, Sensex and Nifty, are vital indicators of India’s stock market health. Sensex offers a focused snapshot of 30 of India’s largest companies, while Nifty provides a broader view across 50 major stocks and 24 sectors. Understanding the sensex vs nifty structure, methodology, and sector coverage helps investors interpret market movements with greater clarity and make more informed decisions.

If you're looking to deepen your knowledge about the Indian equity market or build a long-term investment plan, understanding these indices is a great place to start.