{"id":15153,"date":"2025-09-26T16:25:01","date_gmt":"2025-09-26T10:55:01","guid":{"rendered":"https:\/\/www.gwcindia.in\/blog\/?p=15153"},"modified":"2025-09-26T16:25:01","modified_gmt":"2025-09-26T10:55:01","slug":"nifty-50-vs-sensex-which-index-should-you-follow","status":"publish","type":"post","link":"https:\/\/www.gwcindia.in\/blog\/nifty-50-vs-sensex-which-index-should-you-follow\/","title":{"rendered":"Nifty 50 vs Sensex: Which Index Should You Follow?"},"content":{"rendered":"<article class=\"text-token-text-primary w-full focus:outline-none scroll-mt-(--header-height)\" dir=\"auto\" data-turn-id=\"8bcfbf49-a152-43ec-b7c0-d39795ed51f9\" data-testid=\"conversation-turn-123\" data-scroll-anchor=\"false\" data-turn=\"user\"><\/article>\n<article class=\"text-token-text-primary w-full focus:outline-none scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" data-turn-id=\"45181891-5379-448a-8d81-35a7d3f6caf1\" data-testid=\"conversation-turn-124\" data-scroll-anchor=\"false\" data-turn=\"assistant\">\n<div class=\"text-base my-auto mx-auto [--thread-content-margin:--spacing(4)] thread-sm:[--thread-content-margin:--spacing(6)] thread-lg:[--thread-content-margin:--spacing(16)] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:40rem] thread-lg:[--thread-content-max-width:48rem] mx-auto max-w-(--thread-content-max-width) flex-1 group\/turn-messages focus-visible:outline-hidden relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"flex max-w-full flex-col grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"45181891-5379-448a-8d81-35a7d3f6caf1\" data-message-model-slug=\"gpt-5\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose dark:prose-invert w-full break-words light markdown-new-styling\">\n<h1 data-start=\"58\" data-end=\"112\">Nifty 50 vs Sensex: Which Index Should You Follow?<\/h1>\n<p data-start=\"114\" data-end=\"408\">When it comes to tracking the Indian stock market, two names dominate the conversation \u2014 <strong data-start=\"203\" data-end=\"215\">Nifty 50<\/strong> and <strong data-start=\"220\" data-end=\"230\">Sensex<\/strong>. Both are benchmark indices that reflect the performance of the Indian equity markets, but many investors often wonder: <em data-start=\"351\" data-end=\"406\">Which index should I follow for investment decisions?<\/em><\/p>\n<p data-start=\"410\" data-end=\"510\">In this blog, we\u2019ll break down the differences, similarities, and which one might suit you better.<\/p>\n<h2 data-start=\"517\" data-end=\"544\">What is the Sensex?<\/h2>\n<p data-start=\"545\" data-end=\"784\">The <strong data-start=\"549\" data-end=\"559\">Sensex<\/strong> (Sensitive Index), introduced in 1986, is India\u2019s oldest stock market index. It is managed by the <strong data-start=\"658\" data-end=\"689\">BSE (Bombay Stock Exchange)<\/strong> and comprises <strong data-start=\"704\" data-end=\"763\">30 of the largest and most financially stable companies<\/strong> listed on the BSE.<\/p>\n<ul data-start=\"786\" data-end=\"954\">\n<li data-start=\"786\" data-end=\"812\">\n<p data-start=\"788\" data-end=\"812\"><strong data-start=\"788\" data-end=\"802\">Base Year:<\/strong> 1978\u201379<\/p>\n<\/li>\n<li data-start=\"813\" data-end=\"836\">\n<p data-start=\"815\" data-end=\"836\"><strong data-start=\"815\" data-end=\"830\">Base Value:<\/strong> 100<\/p>\n<\/li>\n<li data-start=\"837\" data-end=\"865\">\n<p data-start=\"839\" data-end=\"865\"><strong data-start=\"839\" data-end=\"860\">Number of Stocks:<\/strong> 30<\/p>\n<\/li>\n<li data-start=\"866\" data-end=\"954\">\n<p data-start=\"868\" data-end=\"954\"><strong data-start=\"868\" data-end=\"881\">Coverage:<\/strong> Represents key sectors of the Indian economy but with limited breadth.<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"956\" data-end=\"959\" \/>\n<h2 data-start=\"961\" data-end=\"990\">What is the Nifty 50?<\/h2>\n<p data-start=\"991\" data-end=\"1162\">The <strong data-start=\"995\" data-end=\"1007\">Nifty 50<\/strong>, introduced in 1996, is managed by the <strong data-start=\"1047\" data-end=\"1080\">NSE (National Stock Exchange)<\/strong>. It includes <strong data-start=\"1094\" data-end=\"1141\">50 of the largest and most liquid companies<\/strong> listed on the NSE.<\/p>\n<ul data-start=\"1164\" data-end=\"1324\">\n<li data-start=\"1164\" data-end=\"1187\">\n<p data-start=\"1166\" data-end=\"1187\"><strong data-start=\"1166\" data-end=\"1180\">Base Year:<\/strong> 1995<\/p>\n<\/li>\n<li data-start=\"1188\" data-end=\"1212\">\n<p data-start=\"1190\" data-end=\"1212\"><strong data-start=\"1190\" data-end=\"1205\">Base Value:<\/strong> 1000<\/p>\n<\/li>\n<li data-start=\"1213\" data-end=\"1241\">\n<p data-start=\"1215\" data-end=\"1241\"><strong data-start=\"1215\" data-end=\"1236\">Number of Stocks:<\/strong> 50<\/p>\n<\/li>\n<li data-start=\"1242\" data-end=\"1324\">\n<p data-start=\"1244\" data-end=\"1324\"><strong data-start=\"1244\" data-end=\"1257\">Coverage:<\/strong> Broader representation across 14+ sectors of the Indian economy.<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"1326\" data-end=\"1329\" \/>\n<h2 data-start=\"1331\" data-end=\"1382\">Key Differences Between Nifty 50 and Sensex<\/h2>\n<div class=\"_tableContainer_1rjym_1\">\n<div class=\"group _tableWrapper_1rjym_13 flex w-fit flex-col-reverse\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"1384\" data-end=\"2207\">\n<thead data-start=\"1384\" data-end=\"1485\">\n<tr data-start=\"1384\" data-end=\"1485\">\n<th data-start=\"1384\" data-end=\"1407\" data-col-size=\"sm\">Feature<\/th>\n<th data-start=\"1407\" data-end=\"1445\" data-col-size=\"sm\">Sensex (BSE)<\/th>\n<th data-start=\"1445\" data-end=\"1485\" data-col-size=\"sm\">Nifty 50 (NSE)<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"1589\" data-end=\"2207\">\n<tr data-start=\"1589\" data-end=\"1691\">\n<td style=\"text-align: left\" data-start=\"1589\" data-end=\"1612\" data-col-size=\"sm\"><strong data-start=\"1591\" data-end=\"1603\">Exchange<\/strong><\/td>\n<td data-start=\"1612\" data-end=\"1650\" data-col-size=\"sm\">Bombay Stock Exchange (BSE)<\/td>\n<td data-start=\"1650\" data-end=\"1691\" data-col-size=\"sm\">National Stock Exchange (NSE)<\/td>\n<\/tr>\n<tr data-start=\"1692\" data-end=\"1794\">\n<td style=\"text-align: left\" data-start=\"1692\" data-end=\"1715\" data-col-size=\"sm\"><strong data-start=\"1694\" data-end=\"1714\">Number of Stocks<\/strong><\/td>\n<td data-start=\"1715\" data-end=\"1753\" data-col-size=\"sm\">30<\/td>\n<td data-start=\"1753\" data-end=\"1794\" data-col-size=\"sm\">50<\/td>\n<\/tr>\n<tr data-start=\"1795\" data-end=\"1897\">\n<td style=\"text-align: left\" data-start=\"1795\" data-end=\"1818\" data-col-size=\"sm\"><strong data-start=\"1797\" data-end=\"1809\">Launched<\/strong><\/td>\n<td data-start=\"1818\" data-end=\"1856\" data-col-size=\"sm\">1986<\/td>\n<td data-start=\"1856\" data-end=\"1897\" data-col-size=\"sm\">1996<\/td>\n<\/tr>\n<tr data-start=\"1898\" data-end=\"2000\">\n<td style=\"text-align: left\" data-start=\"1898\" data-end=\"1921\" data-col-size=\"sm\"><strong data-start=\"1900\" data-end=\"1913\">Base Year<\/strong><\/td>\n<td data-start=\"1921\" data-end=\"1959\" data-col-size=\"sm\">1978\u201379<\/td>\n<td data-start=\"1959\" data-end=\"2000\" data-col-size=\"sm\">1995<\/td>\n<\/tr>\n<tr data-start=\"2001\" data-end=\"2103\">\n<td style=\"text-align: left\" data-start=\"2001\" data-end=\"2024\" data-col-size=\"sm\"><strong data-start=\"2003\" data-end=\"2022\">Sectors Covered<\/strong><\/td>\n<td data-start=\"2024\" data-end=\"2062\" data-col-size=\"sm\">Around 13<\/td>\n<td data-start=\"2062\" data-end=\"2103\" data-col-size=\"sm\">Around 14+<\/td>\n<\/tr>\n<tr data-start=\"2104\" data-end=\"2207\">\n<td style=\"text-align: left\" data-start=\"2104\" data-end=\"2127\" data-col-size=\"sm\"><strong data-start=\"2106\" data-end=\"2124\">Representation<\/strong><\/td>\n<td data-start=\"2127\" data-end=\"2165\" data-col-size=\"sm\">Narrower, large-cap focused<\/td>\n<td data-start=\"2165\" data-end=\"2207\" data-col-size=\"sm\">Broader, includes more large-cap firms<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<hr data-start=\"2209\" data-end=\"2212\" \/>\n<h2 data-start=\"2214\" data-end=\"2252\">Which Index Should You Follow?<\/h2>\n<ul data-start=\"2254\" data-end=\"2819\">\n<li data-start=\"2254\" data-end=\"2425\">\n<p data-start=\"2256\" data-end=\"2425\"><strong data-start=\"2256\" data-end=\"2337\">If you want a quick snapshot of India\u2019s market sentiment \u2192 Follow the Sensex.<\/strong><br data-start=\"2337\" data-end=\"2340\" \/>Its long history makes it a popular choice for media, news, and quick references.<\/p>\n<\/li>\n<li data-start=\"2427\" data-end=\"2606\">\n<p data-start=\"2429\" data-end=\"2606\"><strong data-start=\"2429\" data-end=\"2497\">If you want broader market representation \u2192 Follow the Nifty 50.<\/strong><br data-start=\"2497\" data-end=\"2500\" \/>With 50 companies across diverse sectors, it gives a more comprehensive picture of the Indian economy.<\/p>\n<\/li>\n<li data-start=\"2608\" data-end=\"2819\">\n<p data-start=\"2610\" data-end=\"2819\"><strong data-start=\"2610\" data-end=\"2671\">For investors and traders \u2192 Nifty is often more relevant.<\/strong><br data-start=\"2671\" data-end=\"2674\" \/>Since most derivatives (futures &amp; options) are traded on the NSE, Nifty 50 is the preferred index for professional traders and fund managers.<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"2821\" data-end=\"2824\" \/>\n<h2 data-start=\"2826\" data-end=\"2847\">Final Thoughts<\/h2>\n<p data-start=\"2848\" data-end=\"2997\">Both <strong data-start=\"2853\" data-end=\"2876\">Sensex and Nifty 50<\/strong> are excellent barometers of the Indian stock market, and over the long term, their performance is often quite similar.<\/p>\n<ul data-start=\"2999\" data-end=\"3081\">\n<li data-start=\"2999\" data-end=\"3035\">\n<p data-start=\"3001\" data-end=\"3035\"><strong data-start=\"3001\" data-end=\"3033\">Sensex = Simplicity &amp; Legacy<\/strong><\/p>\n<\/li>\n<li data-start=\"3036\" data-end=\"3081\">\n<p data-start=\"3038\" data-end=\"3081\"><strong data-start=\"3038\" data-end=\"3079\">Nifty 50 = Breadth &amp; Modern Relevance<\/strong><\/p>\n<\/li>\n<\/ul>\n<p data-start=\"3083\" data-end=\"3340\">For retail investors, tracking the <strong data-start=\"3118\" data-end=\"3130\">Nifty 50<\/strong> may offer a slightly better reflection of market trends, while the <strong data-start=\"3198\" data-end=\"3208\">Sensex<\/strong> remains a trusted benchmark with historical significance. Ideally, keep an eye on both to gain a well-rounded view of the market.<\/p>\n<\/div>\n<p data-start=\"3083\" data-end=\"3340\"><strong>Related Blogs:<\/strong><\/p>\n<p data-start=\"3083\" data-end=\"3340\"><a href=\"https:\/\/www.gwcindia.in\/blog\/what-are-nifty-and-sensex-basics-of-stock-market-index\/\" target=\"_blank\" rel=\"noopener\">What are Nifty and Sensex? Basics of Stock Market Index<\/a><\/p>\n<p data-start=\"3083\" data-end=\"3340\"><a href=\"https:\/\/www.gwcindia.in\/blog\/nse-vs-bse-which-exchange-should-you-focus-on\/\" target=\"_blank\" rel=\"noopener\">NSE vs BSE: Which Exchange Should You Focus On?<\/a><\/p>\n<p data-start=\"3083\" data-end=\"3340\"><a href=\"https:\/\/www.gwcindia.in\/blog\/index-funds-vs-mutual-funds-which-one-should-you-pick\/\" target=\"_blank\" rel=\"noopener\">Index Funds vs Mutual Funds: Which One Should You Pick?<\/a><\/p>\n<p data-start=\"3083\" data-end=\"3340\"><a href=\"https:\/\/www.gwcindia.in\/blog\/etfs-versus-index-funds\/\" target=\"_blank\" rel=\"noopener\">ETFs versus Index Funds<\/a><\/p>\n<p data-start=\"3083\" data-end=\"3340\"><a href=\"https:\/\/www.gwcindia.in\/blog\/understanding-index-funds-in-the-indian-market\/\" target=\"_blank\" rel=\"noopener\">Understanding Index Funds in the Indian Market<\/a><\/p>\n<p data-start=\"3083\" data-end=\"3340\"><strong>Disclaimer:<\/strong>\u00a0This blog post is intended for informational purposes only and should not be considered financial advice. The financial data presented is subject to change over time, and the securities mentioned are examples only and do not constitute investment recommendations. Always conduct thorough research and consult with a qualified financial advisor before making any investment decisions.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>Nifty 50 vs Sensex: Which Index Should You Follow? When it comes to tracking the Indian stock market, two names dominate the conversation \u2014 Nifty 50 and Sensex. Both are benchmark indices that reflect the performance of the Indian equity markets, but many investors often wonder: Which index should I follow for investment decisions? In [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":15154,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[2447,2445,2448,2438,2444,2443,2441,2436,2437,2442,2440,2449,2450,2446,2439],"class_list":["post-15153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-beginners-guide-to-nifty-sensex","tag-best-stock-index-india","tag-indian-equity-market-analysis","tag-indian-stock-market-indices","tag-investing-in-nifty","tag-investing-in-sensex","tag-nifty-50-explained","tag-nifty-50-vs-sensex","tag-nifty-vs-sensex-comparison","tag-nse-vs-bse-indices","tag-sensex-explained","tag-sensex-vs-nifty-performance","tag-stock-investing-india-2025","tag-stock-market-guide-india","tag-which-index-to-follow-india"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/15153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/comments?post=15153"}],"version-history":[{"count":3,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/15153\/revisions"}],"predecessor-version":[{"id":15157,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/15153\/revisions\/15157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/media\/15154"}],"wp:attachment":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/media?parent=15153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/categories?post=15153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/tags?post=15153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}