Indian Indices

Indian market indices track selected stocks to show market trends and performance. Indices like Nifty and Sensex help compare investments, analyze the market, and guide decisions, making it easier for investors to plan.

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What are Indian Market Indices?

Indian Market Indices are statistical measures that track the performance of a specific set of stocks representing a segment of the Indian stock market. Without examining individual equities, these indices like the Sensex and Nifty help investors assess the state of the economy and make investment decisions by providing insights into market movements.
 

FAQs

They offer a snapshot of market performance, help track trends, and serve as benchmarks for investment comparison.

No, but you can invest in index funds or ETFs that replicate the indices’ performance.

Sensex comprises 30 BSE-listed companies, while Nifty includes 50 NSE-listed companies.Both serve as benchmarks but represent different sets of companies.

Stocks are chosen based on criteria like market capitalization, liquidity, and industry representation.

Yes, sectoral indices like Nifty IT and Nifty Bank focus on industries such as IT and banking.

These indices group companies based on their market capitalization, such as small-cap, mid-cap, or large-cap indices.

When a company is removed, its stocks no longer affect the index, and a new company is added to replace it.  

A stock market index is created by grouping stocks with similar market capitalizations, industries, or business sizes. Each stock is weighted by its price or market cap, and the index value reflects the combined performance of these stocks.  

Disclaimer:

Derived prices are not provided by exchanges. They are derived by market makers in CFD OTC market and hence prices may not be accurate and may differ from the actual market price, meaning prices are indicative only and not appropriate for trading purposes. Therefore 5paisa doesn't bear any responsibility for any trading losses you might incur as a result of using this data.

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