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 Friends, what is a stock market index, what is its function, what are the benefits of having a stock market index, how many indexes are there in our stock market.  Today we will discuss it in detail. Read this - Infosys revenue


 What is the stock market index?


 What is the function of a stock market index?


 What is the advantage of a stock market index?


 You will find the answer to these questions below.


 What is the stock market index?


 The index is called suchi or index in Hindi.


 In this way, the stock market index is the way, which tells the information of the company listed in the stock market, by the index, the business of the listed company on a stock exchange, and the ups and downs in their shares can be understood very easily.


 If the stock market index is above its previous day's numbers, then it can be considered that the market is in profit today, and if the stock market index is below the index's points today compared to the previous days, then it is considered that the market is in profit.  is in the loss.


 For example, if the stock exchange index, which is known as Nifty, closes at 15754 points on 28 July 2021, and closes at 15813 points on 29 July 2021, then it can be said that today the market is bullish.  has been.


 There are two major stock market indices in India and both have different indexes.


 1. NATIONAL STOCK EXCHANGE (NSE) NIFTY


 The NSE index (Nifty) gives information about the rise and fall of the shares of the company listed on the National Stock Exchange.


  There are about 2500 companies listed on the National Stock Exchange but the index is based on only 50 companies, which is called NIFTY50.


 2. BOMBAY STOCK EXCHANGE (BSE) SENSEX


 Provides information about the rise and fall of the shares of the company listed on the Bombay Stock Exchange through the index of BSE.


 There are more than 6000 companies listed on the Bombay Stock Exchange, but the Sensex index is based on only 30 companies.  Read this - Infosys revenue Q4


 What is the function of the stock market?


 Just as the change in the country's economy is understood by the change in the GDP of that country to understand the economic condition of the country, in the same way, with the help of the stock market index, the business of thousands of companies listed in the market is understood.  Goes.


 To make the index easy, the index is made by combining the big companies of different sectors, so that the changes happening in the business of the company of all the sectors can be easily understood.


 BENEFITS OF STOCK MARKET INDEX


 It is only with the help of the stock market index that we can easily understand how the capital market of a country is working.


 1. To know the top companies in the stock market


 The company involved in the stock market is the most prominent company in its field, and its information is easily available to us from the stock market index.


 As 50 companies included in Nifty are the most traded and trusted company which is also called Blue Chip Company.  These companies are easily found in the index.


 TO UNDERSTAND THE ECONOMIC TREND


 With the help of the stock market index, we can easily understand the trend of the capital market of a country, how fast or slow it is, and what has been the trend of the capital market of that country in the last years.


 It is very important for an investor to know how much he can benefit from an investment, in such a situation, the profit from the stock of all the companies is different, in such a situation, with the help of the stock market index, it is possible for the investor to understand this.  It remains, how much can be earned by investing in the stock market.


 For the stock market investor, the index is used as a benchmark to compare the returns from different investments,


 An investor will invest in the stock market only when he knows that the stock market is more profitable than the investment, and the profit made in such a situation can be easily understood by the changes in the index,


 I hope you have understood the stock market index.  Similarly, if you want to learn about the stock market, then keep visiting this website and keep learning about the stock market.

 If you want to ask any questions, thank you by commenting.



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