What is Index In stock Market

An index is a measurement of the performance of a group of stocks that represent a particular market or sector, for example NIFTY covers 50 stcoks which represents different Sectors

Key Features of  Indexes :-

• Benchmarking: Investors and analysts use indexes to gauge market performance.

• Diversification: An index represents multiple stocks, reducing the impact of individual stock volatility.

• Investment Tool: Index funds and ETFs allow investors to invest in a whole index rather than individual stocks.

Popular Global Indexes :-

1. Global:

   • MSCI World Index – Tracks global equity markets.

   • S&P Global 100 – Covers the top multinational companies.

2. USA:

   • S&P 500 – Tracks 500 large-cap U.S. companies.

   • Dow Jones Industrial Average (DJIA) – Includes 30 major U.S. companies.

   • NASDAQ Composite – Focuses on tech-heavy stocks.

3. India:

   • Nifty 50 – Represents the top 50 companies on the NSE.

   • Sensex (BSE 30) – Comprises 30 well-established companies on the BSE.

4. UK:

   • FTSE 100 – Includes 100 large-cap UK companies.

5. Japan:

   • Nikkei 225 – The main index for the Tokyo Stock Exchange.

Details will be uploaded Soon….