Which Benchmarks Like Sensex and Nifty Should You Keep an Eye On?

The stock market might seem complex at first, but understanding indices could make things a bit simpler. In this video, we’ll talk about what indices are and how they track a group of company stocks.

We’ll begin with how indices work like scoreboards, giving you an overall sense of how a section of the market is performing. You’ll learn how Sensex and Nifty reflect movements in the Indian stock market. We’ll uncover how Sensex tracks 30 of the largest companies listed on the BSE, while Nifty follows 50 leading companies on the NSE.

We’ll also take a closer look at other indices like Nifty Bank and Nifty Next 50 under NSE, along with BSE 500 and BSE Bankex under BSE. We’ll explore how these indices might help you understand specific sectors and their behaviours within the larger market space. You’ll also discover that there are many more indices that might offer a more comprehensive view of the stock market.

By the end, you might get an idea of how indices could help you assess market conditions, compare returns, and refine your investment strategies.

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Key Takeaways

Indices serve as performance indicators that reflect how a selected group of stocks is doing in the market

Sensex and Nifty 50 are among the the most closely tracked stock indices in India

Sensex represents 30 top-performing and highly traded companies listed on the Bombay Stock Exchange

Nifty includes 50 prominent companies from different sectors that are listed on the National Stock Exchange

Nifty Bank reflects how leading bank stocks on the NSE are performing

Nifty Next 50 covers the next set of large companies from Nifty 100, excluding those in Nifty 50

BSE 500 tracks a wider range of companies from multiple sectors listed on the BSE

BSE Bankex focuses on banking stocks that form a part of the broader BSE 500 index

Following different indices might offer insights into how various sectors or groups are moving over time

Frequently Asked Questions
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Stock market indices represent how a group of selected companies is performing in the market. They work like performance trackers, offering a general view of how that segment is moving. Different indices may focus on various sectors, company sizes, or stock exchange listings.
You might hear about Sensex and Nifty frequently because they track well-known, actively traded companies. These indices are widely used to observe market movement. Their updates often reflect what’s happening across larger segments of the Indian stock market during a trading session.
Sensex and Nifty focus on different sets of companies and belong to separate stock exchanges. While Sensex tracks 30 companies listed on the BSE, Nifty covers 50 listed on the NSE. The larger pool in Nifty might offer broader diversification, whereas Sensex could reflect more established market players.
There are many other indices that follow different types of companies. Some, like BSE 500 or Nifty Bank, track broader or sector-specific groups. These indices might help reflect performance patterns across industries, market caps, or emerging companies not covered by Sensex or Nifty.
Indices could offer a general view of how parts of the market are moving. Watching them might help you spot shifts in momentum, sector performance, or overall direction without having to follow individual stocks every time.
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