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A stock market index, also known as stock index, is a statistical measure that reflects changes taking place in the market. Itu2019s created by grouping a few similar stocks among the securities listed on the exchange and the selection criteria could be the size of a company, its market capitalization or type of industry.<br>Read the presentation to learn more about Stock Market Indices.<br><br>https://www.edelweiss.in/market
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Introduction A stock market index, also known as stock index, is a statistical measure that reflects changes taking place in the market. It’s created by grouping a few similar stocks among the securities listed on the exchange and the selection criteria could be the size of a company, its market capitalization or type of industry. Change in prices of underlying securities impacts the overall value of the index. If prices rise, the index will rise, and if they go down, so will the index. Stock indices are required to know the mood and sentiment prevailing in the market. As an investor, you can identify the market’s pattern by looking at the indices, and use it to decide which stock can prove to be a winning bet.
Types of indices Some of the common types of indices in Indian stock market are as follows: Benchmark indices like BSE Sensex and NSE Nifty Broad-based indices like Nifty 50 and BSE 100 Market capitalization-based indices such as BSE Midcap and BSE Smallcap Sectoral indices such as CNX IT, Nifty FMCG, Nifty Bank Index, S&P BSE Oil and Gas, etc.
conclusion The Sensex and the Nifty are two of the most common terms you hear in the stock market.
