Market Index

Index

Basket of well-established and financially sound companies

A market index tracks the performance of a specific "basket" of stocks considered to represent a particular market or sector of any stock market or the economy all over the world. It is a tool used by investors and financial managers to describe the market. Index gives clear indications on direction of market.

Here are general descriptions of a few major market indices.

S&P 500	USA	Index of 500 stocks intended to be a representative sample of leading companies in leading industries within the U.S. economy
Dow Jones Industrial Average (DJIA)	USA	The Dow Jones Industrial Average is an index of 30 "blue chip" stocks of U.S. industrial companies.
SENSEX	INDIA	SENSEX is a stock market index based on collection of 30 well-established and financially sound companies listed on Bombay Stock Exchange
NIFTY	INDIA	India's benchmark stock market index for Indian equity market which is a collection of top 50 companies in India. This index is associated with National stock exchange.