A stock market index is a statistical indicator that measures the performance of a particular section of the stock market based on criteria such as industry, size, or capitalization. It is measured by the change in its value over time.
The BSE Sensex is a price-weighted index of the 30 largest companies listed on the BSE, while the Nifty 50 is a market-capitalization-weighted index of the 50 largest companies listed on the NSE.
The BSE Sensex is the oldest and most widely followed stock market index in India, and is currently valued at over 270 trillion. The Nifty 50 was launched in 1996 and is currently valued at over 150 trillion.
The BSE Sensex and Nifty 50 are used as a barometer of the Indian stock market, and when they are up, it is a sign that the market is doing well. When they are down, it is a sign that the market is doing poorly.
Stock market indices are indicators of the overall market sentiment and provide investors with a reference point to gauge the performance of the Indian stock market. They are used by market participants to benchmark investment returns, create index-based products, and assess market trends.