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Bench mark is a term used to signify the minimum or average performance of a stock. Let us have a look at the sentence.

"Stocks of the ABC limited have underperformed the category benchmark index by 10%"

Assuming, ABC is an IT company, then it means that the increase in price of the stocks of ABC have been 10% lesser than its peers in the same category. The benchmark would be formed by taking the average of the prices of the top few performers of the category.

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16y ago

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