Sensex or Nifty which is better

The only difference is Sensex comprises 30 companies, and Nifty comprises 50 companies. Due to the high number of active stock marketers, high liquidity, and active buying and selling, Nifty is more significant in number than Sensex, but overall, Sensex has been performing better than Nifty.

Is Sensex better than Nifty?

Which is a better index: Sensex or NIFTY 50? Well, both NIFTY 50 and Sensex are the most prominent indexes of India. They both are widely considered by the investors. However, the volume and number of stocks are higher on NIFTY 50 as compared to the BSE.

Where should I invest Nifty or Sensex?

You can start investing directly in the constituents of the SENSEX and the weightage they have in that particular index. This means that you can directly buy the stocks in the quantity which is equivalent to the stock's weightage. The better option to invest in SENSEX would be to invest in index mutual funds.

Should I invest in both Nifty and Sensex?

However, if you feel BSE Sensex is more concentrated, then you can use Nifty 50. If you are a long-term investor, then the return difference is marginal, and as usual past data is not an indication of future performance. Hence, in general, we can judge that you can choose either of the indices.

Why Sensex points are higher than Nifty?

Because the base year for calculation of both indices is different. Sensex has base year of 1979 and base value of 100, so that means Sensex at 32000 is whopping 320 times that of 1979 value. Nifty has base year of 1996 and base value of 1000, so Nifty at 10000 now means that it is 10 times that of 1996 value.