Indian economy depends on the market indexes such as NSE and BSE. Apart from the general idea of stocks rise and fall, these indexes present a benchmark for the performance showcased by listed companies.
The NSE index is termed as NIFTY whereas the BSE index is termed as SENSEX. Once you know the difference between the two indices, you get a good idea to trade in a disciplined manner.
NSE or nifty receives huge volume of trades. So, lets discuss the important factors regarding the market index of National Stock Exchange of India here.
1. What is NIFTY?
The equity market of India has its benchmark market of stocks. This benchmark market is known as NIFTY 50. Owned by IISL, this market index trades about 50 active stocks on the National Stock Exchange. The top ones of the NSE stocks are picked from 24 different sectors. This brings the diversity in the active stock trading. The market index works with 1995 as the base year. Also, the base value is 1000.
Just like Sensex, this market index also works as an indicator of the movements occurring in the equity market. This market index offers an overall growth or fall of the stocks of Indian listed companies. So, if most of the stocks rise in their value, you can see a growth in the market index. Also, such rise and fall in this market index shows the price rise or fall in the stocks of National Stock Exchange.
2. Why is this market index important?
The increase or decrease in this market index tells us about the overall economic growth of India. However, there are other factors that make this market index important for Indian economy.
Presenting market behaviour
The market index works as a mapping meter of how the market works. Traders get to have an overall idea of the performance of the market. A growth in this market index says that most stock prices have gone up in India.
Works as benchmark portfolio
To evaluate the performance of the Indian economy, this market index is leveraged. In many surveys or research, the market index tells about the overall performance of Indian stocks. Hence, the understanding of the economic performance improves.
Explains investors’ behaviour
The movement of the market index also tells about the behaviour of the investors. The values represent the current sentiments of the investors. This way, the market knows how investors are thinking about the stocks in India.
With all the listed companies, the traders get to conveniently sort the lists. With that, the comparison becomes much easier for the traders.
Nifty is leveraged to manage the market fund too. The index funds use the passive management methods to manage funds through this market index.
3. How to monitor stocks on a daily basis?
In order to monitor stocks, you need to get an online list of this market index. There are reliable platforms where you can get real-time reports of the market performance. You can select one that is reputed and trusted. There you can find the current overall market value along with a day’s range and listed companies as well.
That’s a wrap on this topic. Hopefully, you have gotten your answers regarding this market index.