What Are Market Indexes Like Nifty50 and SenSex or other worldwide Indexes ?

Market Indexes helps to track the overall market (for a particular stock exchange). These are generally aggregates of major high cap companies and it helps investors to determine overall market movement.

Example: Nifty50 is an index for NSE (National Stock Exchange) and Sensex is for (Bombay Stocks Exchange).

Why Indexes are important in stock Market?

As it helps Investors to determine overall market movement using this investor can analyse their portfolio performance compared to over all market and sometimes can make direct investment strategies accordingly.