Portfolio Overlap – Nifty Vs Sensex

Both Nifty50 and Sensex are bellwether indices of Indian markets.

And if you are a passive investor looking to pick between Sensex or Nifty50 index funds, then as I wrote in the article – Sensex vs Nifty,┬áboth options are good to choose from. But there is no point holding both of them. And that is because since Sensex has 30 companies and Nifty50 has 50 companies, there are bound to be overlaps between the two.

So let’s have a look at the overlap between Sensex and Nifty50 indexes.

As per the March 2022 data, here are a few insights about the overlap between the two indices:

  • 100% of Sensex holdings are common with Nifty50 holdings
  • 86% of Nifty50 holdings are common with Sensex holdings
  • Around 31 stocks are common between the two indexes
  • 14% of Nifty50 holdings are not part of Sensex holdings
  • Around 20 stocks are part of Nifty50 but not Sensex

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