What is the difference in investing between the two..
Why does the Nifty index have lesser points than BSE??
eg., Nifty is around 4000 but BSE is around 14000..
2007-02-12 19:17:47 · 1 answers · asked by AYOOZe 3 in Business & Finance ➔ Investing
The NSE is a broader stock exchange than the BSE because more companies are listed on the first one (4500) than on the second (2500 companies).
Indices are calculated from the companies listed, by various rules, that take into account market cap, trading volume and other things. At the end the index is normalized, for instance by fixing it to a round number on a certain date in the past.
These rules are pretty arbitrary, and the result might be that in points one index is smaller than the other, although it contains more stocks.
That is not important. What is important is the comparison of the changes between two dates.
2007-02-12 20:52:24 · answer #1 · answered by cordefr 7 · 0⤊ 0⤋