The Indian stock market has a variety of indices that track the overall performance of the market as well as specific sectors and industries. With over 5000 listed companies trading on the Bombay Stock Exchange and National Stock Exchange, India has a diverse capital market ecosystem. Some of the major stock market indices in India that capture this breadth are:
- The Nifty 50
The nifty 50 share price is tracked by Nifty 50 index, which represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange. It covers 13 sectors of the Indian economy and offers the most comprehensive representation of the Indian stock market. The Nifty 50 accounts for 13.2% of the free float market capitalization of the stocks listed on NSE.
- The Sensex
The BSE Sensex, also known as the S&P BSE SENSEX Index, tracks the performance of 30 major companies listed on the Bombay Stock Exchange. It is one of the most popular indices in India and serves as an indicator of overall market sentiment. The Sensex today reflects the health of the Indian economy and investors closely track its movement.
- Sectoral Indices
Apart from the broad market indices, the NSE and BSE also have various sectoral indices that track specific sectors. Some examples are Nifty Bank, Nifty FMCG, Nifty IT, Nifty Pharma, Nifty Media, Nifty Auto, Nifty Metal, etc. These sectoral indices help gauge the performance of stocks in individual sector and industry segments.
- Smallcap and Midcap Indices
To track smallcap and midcap stocks, NSE has the Nifty Smallcap 100 and Nifty Midcap 50 indices. The smallcap index tracks the performance of 100 small market capitalization companies while the midcap index tracks 50 mid-sized companies. These indices provide exposure to higher growth potential but relatively risky small and midcap segments.
- International Indices
Some Indian indices also track the performance of the Indian stock market in the context of global markets. Nifty 50 USD tracks the Nifty 50 companies in US dollar terms. Similarly, the Nifty 100 measures the rupee returns generated by the Nifty 100 portfolio for US investors.
- Bond Indices
Apart from equity indices, NSE and BSE also have bond indices that track the performance of Indian bond markets. Some major bond indices are Nifty All Maturity Gilt Index, Nifty 10 Year Benchmark Gilt Index and Nifty 1-3 Yr Debt Index.
- Commodity Indices
MCX and NCDEX offer various commodity indices that track the overall price movement and performance of commodities such as bullion, energy, metals, minerals and agri commodities.
- Thematic Indices
Exchanges also have thematic indices that track stocks in specific investment themes or strategies. Examples are Nifty Dividend Opportunities 50, Nifty100 Low Volatility 30, Nifty Alpha Low-Volatility 30, etc.
Conclusion
In summary, the Indian stock market offers a diverse range of indices across equities, bonds and commodities. The Sensex today and the nifty 50 share price form the most popular benchmarks. But sectoral, thematic and strategy indices provide a more nuanced look into market performance. An investor can choose relevant indices as per their investment style and portfolio objectives. The wide availability of indices makes stock market analysis more insightful for investors in India.
