Sensex vs Nifty vs Bank Nifty – What Is the Difference?

Sensex, Nifty, and Bank Nifty are major stock market indices in India. Many investors get confused between these indices. This article explains the difference between Sensex, Nifty, and Bank Nifty in simple language.

What Is Sensex?

Sensex represents 30 large and financially strong companies listed on the Bombay Stock Exchange (BSE). It reflects the overall performance of leading companies.

What Is Nifty?

Nifty represents 50 major companies listed on the National Stock Exchange (NSE). It is broader than Sensex in terms of company coverage.

What Is Bank Nifty?

Bank Nifty is a sectoral index that tracks major banking stocks. It reflects the performance of the banking sector.

You can also read our detailed guide on Bank Nifty movement explained.

Key Differences

• Sensex tracks 30 companies (BSE)
• Nifty tracks 50 companies (NSE)
• Bank Nifty tracks banking sector only

Conclusion

Understanding these indices helps investors interpret market trends and sector performance better.