As we all know to measure distance we have kilometer and for weight we have kilogram,like that to measure the stock markets changes we have Index which is a comprehensive measure of market trends, intended for investors who are concerned with general stock market price movements. An Index comprises stocks that have large liquidity and market capitalisation. Each stock is given a weightage in the Index equivalent to its market capitalisation. At the NSE,the capitalisation of NIFTY (fifty selected stocks) is taken as a base capitalisation, with the value set at 1000. Similarly, BSE Sensitive Index or Sensex comprises 30 selected stocks. The Index value compares the day's market capitalisation with base capitalisation and indicates how prices in general have moved on the day.
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the India's two leading Exchanges. There are 20 other regional Exchangeslike Madras Stock Exchange, connected via the Inter-Connected Stock Exchange (ICSE). The BSE and NSE indexes are traded nationwide.
