A magnetic sensor comprising: a multilayer film which has a pinned magnetic layer, the magnetization thereof being pinned in one direction, and a free magnetic layer formed on the pinned magnetic layer with a nonmagnetic material layer provided therebetween, in which current is allowed to flow in a direction perpendicular to the surfaces of the layers forming the multilayer film, wherein the pinned magnetic layer has a Ni.sub.aFe.sub.b alloy layer (where a and b each indicate atomic percent, and 0