Key Concepts Explained
What is a Market Index?
A market index is a statistical measure designed to represent the performance of a specific group of stocks (e.g., from a particular stock exchange, sector, or country). It acts as a barometer for overall market sentiment and trends.
What Nifty 50 Represents
Nifty 50 is the benchmark index of the National Stock Exchange (NSE) of India. It comprises 50 of the largest and most liquid Indian companies, reflecting the broader Indian stock market's performance.
Why Sensex is Important
Sensex (S&P BSE Sensex) is the benchmark index of the Bombay Stock Exchange (BSE). It consists of 30 large, well-established, and financially sound companies, providing another key indicator of the Indian market.
How Indices Help Track Market Performance
By observing the movement of indices like Nifty and Sensex, investors can gauge the overall direction of the market (bullish or bearish) and compare the performance of their individual investments against the market average.