Difference Between Nifty and Sensex

Almost all the people who read the newspaper or listen to the news on television must have heard the words Sensex and nifty futures for the stock market profile. Trading on the domestic stock markets in India is done on this basis. We can call it type of auction market theory in which shares are bought and sold.

What is Sensex?

The Sensex is the benchmark index of out Indian stock market, which indicates the rise and fill in the prices of shares listed on the BSE. BSE stands for Bombay stock Market. Through this we get information about the performance of the 30 largest companies listed in it.

What is Nifty?

Nifty options is an important benchmark of the national stock exchange of India. It is an index of 50 major shares listed on the National stock exchange. It monitors the shares of 50 major companies of the country.

Difference between Sensex and nifty

Nifty and Sensex both are related to stock market and we also found some difference between Bank nifty options and Sensex.

●      The National Stock Exchange’s sensitive index is nifty and Mumbai stock exchange’s index is SENSEX.

●      Information about the top 50 companies is provided on the National Stock Exchange while only the top 30 companies are provided on the Mumbai stock exchange.

●      The actual market share can be estimated more by the top 50 companies rather than the 30 top companies.

●      Nifty and Sensex indices are calculated by the base year. The base year of Sensex is taken as 100 for 1979 and the base year for nifty is taken as 1000 for 1995. The stock is valued only on these base years.

●  The Sensex started on 1st January 1986 and nifty started in November 1994.

The work of both is same. Both are indices and both have real motive to tell the state of the stock market. 

On what basis companies are selected?

●      The shares of that company should be listed on stock exchange for at least one year or more.

●      It is mandatory to buy and sell the stock of that company on every day on which the stock market is open with in the last one year.

●  These companies must be among the largest 150 companies in the country according to the number and value of daily trades.

These are the things that are taken into consideration by index committee for listing.

Sensex and nifty are the Indian economy barometers. If these markets are good then it indicates that the investment culture is in an excellent form. If you want to trade in indexes then you must thoroughly know what Sensex and nifty are. Stock movement can be seen through the technical charts.

Investing in shares and debentures in the immediate time has become a good medium of business. People from any section of the society, caste religion, invest their hard earned money under it with the purpose and expectation that they will be able to get good interest returns. While the share is the share of a company's capital, the debenture comes out as a long term investment. The company benefits investors at a fixed rate. Here are both of these being described. Both plans are for investing but you will find difference between share and debentures.

What is Share?

The smallest part of a company is called stock. This stock is brought to sail in the open market. This increases the capital of a company. The price at which this share is received by the people is called the share price. This share represents the share of the shareholder in the ownership of the company. Shares can usually be transferred and are present in different numbers for a company.

What is debenture?

The debenture is roughly a long-term debt instrument. If a company requires more funds to spread itself, and that company doesn't even want to increase its shareholders, it issues debentures. Under which any common person can avail a fixed interest rate by putting money in the company for a fixed time. Debentures are issued to people by the same process as the process by which a company issues shares. A debenture is issued only by the common seal of a company. By the definition of you can distinguish between share and debenture. 

Difference between share and debenture

●  Status: The share is the capital of a company but the debenture is the debt of a company. Thus, a shareholder is a part of a company, while the debenture holder is not part of the company. The debenture also reveals that the company is not in any debt. Read here what's the difference between partner shareholders and stakeholders?

●  Return: The dividend of a share depends on the company's immediate profit, but in the debenture, the investor receives a different interest than whether the company is in profit or loss. before investing every investor checked the debenture and share difference on the base of return.

●  Repayment: Ready-made reference shares cannot be obtained without any legal process, but the debenture amount is handed over to the debenture holder at the time of their expiry date on completion of a certain time.

●  Format of income: A shareholder in the share receives a dividend as a profit, while the investor receives interest on the debenture.

●      Security: The shareholder does not charge the assets of the company in any way, while the debenture holder is charged on all assets or a certain asset of a company. No security charges are issued for the share, but security charges are issued for the debentures.

These are the main debentures and share difference .

Difference between equity share and debenture

Equity shares are called "in which dividends are not fixed and in which investors i.e. shareholders are considered owners. Whereas debenture give fixed return on investment. 

Thank you!