What is Index in Share Market?

What does index mean?

When we talk about the index of the stock market, it becomes important to know about it, what is the index? What is an index, what is an index used for?

In the stock market, there is such a software system for different types of market-related information.

Due to this, we keep getting information about the performance of the market, etc.

One of these is the index, about which we will learn further.

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What is Index?

What is the index in the stock market?

The index is the standard to measure the performance of the prices of the shares of the market or industry on the basis of the prices of the shares.

It tracks the price movement of a group of shares.

Index or Index refers to the position or trend of the market.

The rise and fall of the index reflect the expectations of the market.

The economy of the country is also estimated on the basis of the index.

The stock market index up means that the future of the market will be good.

Whereas the index being down is a sign of the market going down.

The following is the national index of Indian stock markets.

The index of NSE (INDEX) is known as "NIFTY".

In this, the shares of 50 companies of different sectors or sectors of the top-performing well are included.

The index of BSE (INDEX) is known as "SENSEX".

In this also the shares of 30 companies of different sectors with the largest market capitalization are included.

The base index value is used in its calculation.

Sensex uses a base index value of 100 and Nifty uses a base index value of 1000.

Its calculation formula is as follows:- [Current Market Value / Base Market Capital] x Base Index Value

Now you must have understood what is index. What is its role in the share market? etc.

We hope you have understood. If you liked this information, then please do share it.

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