Frequent use of terms like Sensex and Nifty in stock market is intrinsic part of stock market. But what Sensex and Nifty stands for? The Sensex is an "index". Now next question comes what is an index? An index is fundamentally an indicator. It provides you a broad-spectrum idea about whether most of the stocks have gone up or most of the stocks have gone down. BSE’s all major companies are comprised in Sensex as it is an indicator. The Nifty is an indicator of all the major companies of the NSE. When the Sensex goes up, it means that the prices of the stocks of most of the foremost companies on the BSE have gone positive. When Sensex goes down, this let us know that the stock price of most of the major stocks on the BSE have gone down. More to clear, the BSE represents Bombay Stock Exchange and the NSE denotes National Stock Exchange. The BSE is located at Bombay and the NSE is sited at Delhi. These are the other stock exchanges in the India like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE. Mostly the stock trading in our country is done though the BSE & the NSE.
There are many indexes apart from BSE and NSE like there is an index which gives you an idea of the mid-cap stocks to go up and down. This type of index is called “BSE Mid-cap Index”. There is an index for the metal stocks. There is an index for the FMCG stocks and much more.