Stock Index

A Stock Index is a statistical measure that tracks the performance of a selected group of stocks, representing a specific segment of the market. In India, the Nifty 50 (comprising 50 large-cap companies on NSE) and the S&P BSE Sensex (comprising 30 companies on BSE) are the most widely followed benchmark indices. Stock indices serve as barometers of overall market health, benchmarks for mutual fund performance evaluation, and underlying assets for index funds, ETFs, and derivatives products. Index construction methodologies consider factors like market capitalisation, liquidity, and sector representation.