Why difference in SENSEX and NIFTY points?

Its due to year of formation. Sens*x is much more older than Nifty, and as per market capitalization, sens*x or Nifty points is calculated. Suppose, Reliance industry formed in 2000 with base price of share, lets assume 100. Now, in 2013 due to market capitalization , market price of share 2400. Other company Reliance telecommunication  formed in 2006 with share price of 100. Now in 2013, market price of share 800. Difference is year of formation of two. 

Originally posted by : CA ANOOP DANGWAL
	Its due to year of formation. Sens*x is much more older than Nifty, and as per market capitalization, sens*x or Nifty points is calculated. Suppose, Reliance industry formed in 2000 with base price of share, lets assume 100. Now, in 2013 due to market capitalization , market price of share 2400. Other company Reliance telecommunication  formed in 2006 with share price of 100. Now in 2013, market price of share 800. Difference is year of formation of two.

well said....but rather than saying year difference ...u can say the market capitalization is the main  point of difference between them.......

here we calculate sens*x ..for the first time in year 1978

     sens*x= base market value*current market capitalization/old market capitalization

           bae market value = 100

          old market capitalization is the capitalization in year 1978

  nifty  ....first time in year 1995

formula is same 

               nifty= base value (1000)* CMP/market capitalization in the year 1995

but now there is some change in calculating the index.....now it is calculated on FREE FLOAT MARKET CAPITALIZATION RATHER THAN FULL MARKET CAP..... 

• The Sens*x is an indicator of all the major companies of the BSE.   Sens*x represents the top stocks of the BSE .It com­prises of 30 stocks which are listed in BSE

• The Nifty is an indicator of all the major companies of the NSE.  Nifty represents the top stocks of the NSE.   it com­prises of 50 stocks which are listed on the NSE.

The Sens*x is an indicator of all the major companies on the BSE, where as Nifty is an indicator of all the major companies of the NSE.

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