Showing posts with label Share market. Show all posts
Showing posts with label Share market. Show all posts

Monday, June 3, 2024

Sensex and Nifty.



You have heard of 

You might have heard of others like S&P 500 and Nasdaq.

What are these? Why are they important?

An index or indices (plural) is calculated using a group of stocks.

Example:

-Sensex is based on the 30 biggest companies in India.
-S&P 500 is based on the 500 biggest companies in the USA.

These are the most popular indices. There are many more like these.

Purpose of index: they help us understand how a certain group of stocks is doing.

Example:

-Bank Nifty index shows us how the banking sector is doing.
-Sensex shows how the overall market is doing (since it is made up of the 30 biggest companies in India).