What are Market Indices? - PowerPoint PPT Presentation

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What are Market Indices?

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A stock market index, also known as stock index, is a statistical measure that reflects changes taking place in the market. It’s 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. Read the presentation to learn more about Stock Market() Indices. – PowerPoint PPT presentation

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Title: 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
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