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What is mean by index in share market?

Updated: 8/17/2019
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14y ago

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The index is the consolidated view of the performance of the Stock Market. Let us take the example of the Bombay stock exchange BSE. The index of the BSE is called the Sensex.

Though there are 1000s of companies listed in the BSE, the top 30 companies in the BSE form the sensex index. A weighted average of the prices of these 30 companies is used as an indicative value of the performance of all the companies in the exchange.

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