Stock Market Index

  • A share market Index shows how a specified portfolio of share prices is moving in order to give an indication of market trends.
  • It is a basket of securities and the average price movement of the basket of securities indicates the index movement, whether upwards or downwards.
  • For Ex. BSE Sensex is one index.
  • The BSE SENSEX is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange.

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