About Different Indices
Indices are used to measure the performance of the group of shares from an exchange. These indices are generally calculated on the basis of the market capitalization of the companies listed in the exchange. The indices of India are 2 main which are Nifty 50 and Sensex.
Nifty is listed for National Stock Exchange (NSE) and Sensex is listed on Bombay Stock Exchange (BSE). These are the 2 main stock exchanges of the country, where the shares are listed after becoming accessible to the public, where a normal person can buy and sell the shares. There are many different indices under BSE and NSE depending on the sectors or the market capitalization of the companies like Large Cap, Mid Cap, and Small Cap companies.
These indices bring together a set of companies together to monitor their overall performance in the market of how the group of stocks is performing together. These indices help in understanding the market sentiment which makes it easy to compare the individual stocks and the performance of the stocks of how the prices of the shares are doing in the market, whether the market is going is up or down and the same type of shares in the same sector.
For example: in the same sector, it can be said Nifty Bank, BSE Bankex, Nifty 100, BSE 100, and other indices as well. The market capitalization is calculated by the formula that the current market price of the share is multiplied by total outstanding shares in the market.
The key indices in the Nifty and Sensex include –
- Nifty 50 is for the top 50 companies based on market capitalization. These companies are on the top of the market like Adani Ports, Reliance, Axis Bank, etc. The current Nifty 50 is trading at 17, 277.95 points. Sensex is also for the top 50 companies in the market. It is trading at 57,858.15 points. The CAGR of Nifty of the 20 years is 14.18% and for Sensex is 14.06%
- Nifty 100 which is for the top 100 companies in Nifty and BSE 100 are for the top 100 companies in the market. Nifty 100 and BSE 100 include Nifty 50 and Sensex companies as well. Nifty 100 is trading at around 17,489.15 and BSE 100 is at 17,542.68 points.
- Nifty Bank is for all the banking companies listed on the stock exchange and BSE Bankex is for the banking companies. Nifty Bank is traded at 37,706.75 and BSE Bankex is at 43,164.41 points. The companies in the indices include AU Small Finance Bank, Axis Bank, ICICI Bank, HDFC Bank, SBI, Bank of Baroda, and other listed banks.
- Nifty Mid Cap is for all the medium capital companies listed. The Nifty MidCap for 2 different indices, those are Nifty Mid Cap 50 and Nifty Mid Cap 100. Mid Cap companies are the companies whose market capitalization is above 5,000 crores but less than 20,000 crores. The capital of these companies depends on market capitalization as well. The BSE Mid Cap companies are also there. There are only no other segments like that of NSE. The Nifty Mid Cap 50 is trading at 8,213.45 points, Nifty Mid Cap 100 is at 29,676.90 points and BSE Mid Cap is trading at 28,869.33 points.
- Nifty Small Cap is for the small capital companies listed here, other than the medium and big enterprises. The small-cap companies in NSE are of 2 different indices which include Nifty Small Cap 50 and Nifty Small Cap 100. As far as BSE is there, there is only one indice which is BSE Small Cap. Small-Cap companies are the companies that have a market cap is less than 5,000 crores. The Nifty Small Cap 50 is trading at 5,087.20, Nifty Small Cap 100 is at 10,969.05 and BSE Small-Cap is at 28,869.33 points. Some of the companies in this indices include Avanti Feeds, Bajaj Electric, Blue Star, Blue Dart, and Caplin labs, and other companies as well.