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What are the Sensex & the Nifty?

The Sensex is an "index". What is an index? An index is

basically an indicator. It gives you a general idea about

whether most of the stocks have gone up or most of the

stocks have gone down.

The Sensex is an indicator of all the major companies of

the BSE.

The Nifty is an indicator of all the major companies of

the NSE.

If the Sensex goes up, it means that the prices of the

stocks of most of the major companies on the BSE have

gone up. If the Sensex goes down, this tells you that

the stock price of most of the major stocks on the BSE

have gone down.

Just like the Sensex represents the top stocks of the

BSE, the Nifty represents the top stocks of the NSE.

Just in case you are confused, the BSE, is the Bombay

Stock Exchange and the NSE is the National Stock

Exchange. The BSE is situated at Bombay and the NSE

is situated at Delhi. These are the major stock

exchanges in the country. There are other stock

exchanges like the Calcutta Stock Exchange etc. but

they are not as popular as the BSE and the NSE.Most of

the stock trading in the country is done though the BSE

& the NSE.

Besides Sensex and the Nifty there are many other

indexes. There is an index that gives you an idea about

whether the mid-cap stocks go up and down. This is

called the “BSE Mid-cap Index”. There are many other

types of indexes.

There is an index for the metal stocks. There is an

index for the FMCG stocks. There is an index for the

automobile stocks etc. If you are interested in knowing

how the SENSEX is actually calculated...you must

check-out our "How to calculate BSE SENSEX?" article!

But, before we go ahead and try to understand "How to

make money in the stock market?" you MUST read the

next page....
 Next - 3 things every stock investor MUST remember

>>

<< Previous - What make the stock prices to change?

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Table Of Contents

1. What are stocks?

2. Why do companies issue stocks?

3. What causes stock prices to change?

4. What are the Sensex and the Nifty?

5. 3 important things that every investor MUST remember!!

6. How to decide which stocks to buy?

7. Basics of fundamental analysis!

8. Earnings per share (EPS) ratio and what it means?

9. Price to earnings (P/E) ratio and what it means?

10. PEG ratio and what it means?

11. Inflation and how it silently eats your money!

12. Brokerage and taxation…

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