Understanding Market Indices

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Understanding Market Indices


What is a Market Index?

A Market Index is like a thermometer for the stock market.
It shows whether the market is going up (healthy) or down (weak).

Why Market Indices Are Important

 Measures market performance
Like a report card  tells how the market is doing overall.

Investor Confidence
If the index is rising, people feel positive and may invest more.

Comparison Tool
You can compare how your stocks are doing compared to the overall market.

Popular Market Indices in India

1.     Sensex

Full name: Sensitive Index

Made by: BSE (Bombay Stock Exchange)

Includes: Top 30 companies listed on BSE

Example companies: Reliance, HDFC Bank, TCS

2.     Nifty 50

Full name: National Fifty

Made by: NSE (National Stock Exchange)

Includes: Top 50 companies listed on NSE

Example companies: Infosys, ICICI Bank, Wipro

 

Conclusion

A Market Index is like a scoreboard for the stock market.
If you want to know how the market is doing, look at Sensex or Nifty.
It helps investors make decisions with more confidence.

 

 

 


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