Why do Nifty and Sensex differ on some days?

The 20 extra stocks in Nifty that aren't in Sensex can cause minor daily divergences. Over longer periods, the difference is negligible.

Which index fund should I buy?

Choose based on expense ratio and tracking error, not the index itself. Nifty 50 index funds from UTI, HDFC, and ICICI are among the most popular with the lowest costs.

What about Nifty 100 or Nifty 500?

Nifty 100 adds mid-cap exposure. Nifty 500 covers the entire market. Both are good alternatives for broader diversification.

Nifty 50 vs Sensex: Which Index to Track?

Compare India's two benchmark indices — Nifty 50 (NSE) and Sensex (BSE) for index fund investing.

Criteria	Nifty 50 (NSE)	Sensex (BSE)
Companies	50 stocks	30 stocks
Exchange	NSE	BSE
10-Year Returns	~12.5% CAGR	~12.3% CAGR
Diversification	Better (50 stocks)	Less (30 stocks)
Fund Options	More ETFs and index funds	Fewer options
Tracking Error	Lower (more liquid)	Similar

Our Verdict

Both indices perform nearly identically. Nifty 50 offers slightly better diversification (50 vs 30 stocks) and more fund options. For practical purposes, choose whichever has lower expense ratio — the return difference is negligible.

Detailed Analysis

Nifty 50 and Sensex are India's two most-tracked benchmark indices, representing the health of the Indian stock market.

Nifty 50 consists of 50 large-cap stocks listed on NSE. It's the more widely used benchmark for mutual funds and has a larger ecosystem of index funds and ETFs. The broader representation (50 vs 30 stocks) provides marginally better diversification.

Sensex tracks 30 blue-chip stocks on BSE and is India's oldest index. Both indices have near-identical composition in their top holdings (Reliance, TCS, HDFC Bank, Infosys dominate both).

Nifty 50 vs Sensex: Which Index to Track?

Our Verdict

Detailed Analysis

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