What are Market Indices?

1
What are stock market indices
2
Introduction

• A stock market index, also known as stock index,
  is a statistical measure that reflects changes
  taking place in the market. Its 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 markets pattern
  by looking at the indices, and use it to decide
  which stock can prove to be a winning bet.

3
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, SP BSE Oil and Gas, etc.

4
conclusion

• The Sensex and the Nifty are two of the most
  common terms you hear in the stock market.

5
THANK YOU