stock index

Sensex, Nifty, Nifty50, Nifty bank and the list goes on many people are like I don’t have any idea what is this and the thing is they don’t even want to know, so here the article is to make you aware about what is this index and what they actually show.

Stock indexes are a part of the stock market which show the performance of pre-decided companies. The index is calculated by averaging together a basket of stocks, often with many shares in each company. This way, investors can track how well they are doing as their money is spread out among many different stocks. The recent back news of January was that Sensex hit the 50000 mark for the first time in history. Stock Indexes are a good way to keep track of the market. It's usually done on a daily basis and it can show different aspects like share price, volatility, or total volume traded. Stock indexes have been around for more than 100 years and they're still very popular today because they give an idea about how stocks will perform in different markets. An index can be seen as a good way to keep track of the overall movement in the stock market; however, they are not an accurate measure because it are weighted based on. it tracks how those particular stocks perform, not just some random company or industry. There are many different indexes to choose from and they can all be very helpful in monitoring your investments and giving you a sense of what's going on with world markets. An index is an indicator showing how well shares have performed over time. The index determines how well or poorly these stocks have performed in comparison to each other and then assigns a numerical value to them, with higher numbers indicating more success for those particular stocks. Getting complicated? Don’t worry we are here to help you.

Just consider 1000 students study in a school you have different students from each class and each gender, you have selected students on the different aspects and tracking the daily performance of that students to estimate the overall performance of the students, if all the selected students are going well it will be considered that all the students of the school are going well, and if the selected students are not performing well then you can consider that all the students are going well or you can say the majority of the students are not going well. But what if half of the students are doing well and half not then you can consider the other aspects that which student from which class is having a bad performance according to that you can consider the overall performance of the students in the school. Similarly, the students, in this case, is companies and the school is the stock market, the Sensex include 30 top companies from various fields and Nifty 50 includes 50 companies from various fields. Nifty also have a different index like Nifty Bank, Nifty midcap. Nifty bank shows the performance of banks and NIfty midcap shows the performance of the top companies that have medium market capitalization.