Indices

Index (Stock Market Index)

A number that tracks the combined, weighted performance of a defined basket of stocks — a summary measure of a market or sector.

A stock market index is a calculated number that tracks the combined, weighted performance of a specific, defined basket of stocks, used to represent a market or sector at a glance — without needing to check every individual stock price.

Examples in India

  • Nifty 50 — 50 large NSE-listed companies
  • Sensex — 30 large BSE-listed companies
  • Bank Nifty — a sector-specific index of major banking stocks

See how indices are built and weighted in Stock Market Indices Explained: Nifty 50, Sensex, and Bank Nifty.