
A stock market index captures the behaviour of the overall equity market. The ups and downs of an index reflect the changing expectations of the stock market about the future profitability of india’s corporate sector. This is achieved by giving each stock a weight prportional to its market capitalization. The most important market index is the broad market index, consisting of the large, liquid stocks of the country. In india, we have NIFTY 50 and SENSEX as the major index.
