Key difference: SENSEX is the stock market index for BSE Limited, previously known as the Bombay Stock Exchange. SENSEX Index is comprised of 30 of the largest and most actively-traded stocks on the BSE. Nifty is the stock market index for the National Stock Exchange (NSE). Nifty comprises of 50 of the largest and most actively traded stocks on the NSE that covers 22 sectors of the Indian economy.

The SENSEX and Nifty are both stock market indexes. A stock market index, also known as a stock index is a method of measuring the value of a section of the stock market. The stock index consists of a selected number of stocks, which represent the strength of the stock market exchange as a whole. The stock index is calculated by taking an average, usually weighted of the selected number of stocks as included in the index.

SENSEX is the stock market index for BSE Limited, previously known as the Bombay Stock Exchange. Located on Dalal Street in Mumbai, BSE was established in 1875. BSE has emerged as one of the leading exchange groups of India.  Two major shareholders of the BSE are prominent global exchangers – Deutsche Bourse and Singapore Exchange. As mentioned in Wikipedia, BSE is the first exchange in the world to obtain 9001-2002 certification on its on-line trading system.

An index in a stock exchange is basically an indicator to give a general idea about the stocks; whether they have gone up or most of the stocks have gone down. The popular benchmark equity index of BSE is known as S&P BSE SENSEX. SENSEX Index is comprised of 30 of the largest and most actively-traded stocks on the BSE. Previously it was known as SENSEX but after tying up with S&P now it is known as S&P BSE SENSEX. This tie-up aimed to use the global rating agency’s brand for its index.

Nifty is the stock market index for the National Stock Exchange (NSE). The NSE is another stock exchange which operates in India. NSE came into existence in 1991 by Government of India on the recommendation of the Pherwani Committee. NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India. Ownership and management operates separately in NSE. NSE covers segments like mutual funds, indices, exchange traded funds, equities, etc. of the capital market. NSE is the first exchange in the world to use screen based system for trading, which connected members through a satellite network and allowed them to easily access trade opportunities irrespective of being located in various parts of the country as they are.

Nifty comprises of 50 of the largest and most actively traded stocks on the NSE that covers 22 sectors of the Indian economy. These 50 stocks are also known as the National Fifty. Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and Credit Rating and Information Services of India Ltd. (CRISIL). After tying up with S&P, NSE Nifty, as it was previously known, changed its official name to S&P CNX Nifty, where S&P stands for Standard & Poor and CNX stands for 'CRISIL NSE Index'. However, S&P CNX Nifty is still commonly known as Nifty or NSE Nifty.

The main difference between SENSEX and Nifty is that SENSEX is the stock market index for BSE Limited, while Nifty is the stock market index for National Stock Exchange (NSE). Another is that SENSEX is comprised of 30 stocks, while Nifty is comprised of 50 stocks.

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