6. What is a stock market index?

In the previous video, we discussed how a trading platform works to buy & sell stocks. Now, zooming out, you might have heard people say that the market is up or down on a particular day, but how did they make that judgement?
This is where stock indices like the Nifty 50, Nifty Midcap 100, and Nifty Smallcap 100 come into the picture. There are various types of indices, but the most popular indices tend to the broad market indices like Nifty 50 and Sensex 30. They contain the biggest stocks listed on NSE and BSE. By looking at their performance, you can broadly get an idea about how the market have moved. In this video, we understand what an index is, how it is built and it's users.
Learn more about stock indices: zerodha.com/va...

[@dhanushprabhus2830]

Key takeaways from this chapter An index acts as a barometer of the whole economy. An index going up indicates that the market participants are optimistic. An index going down indicates that the market participants are pessimistic. There are two main indices in India - The BSE Sensex and NSE’s Nifty An index can be used for a variety of purposes - information, benchmarking, trading and hedging. Index trading is probably the most popular use of the index. India follows the free-float market capitalization method to construct the index. There are sector-specific indices which convey the sentiment of specific sectors.

[@achalkagwad1442]

Appreciate the effort in making such good content. One small feedback, when displaying the "Key TakeAways" the screen is clouded by the upcoming videos and a big Zerodha Varsity Logo, which obstructs the Key Takeaways. Can fix that in the next iteration.

[@SandraChirs5m]

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.

[@JosephGodwill9h]

Well as you know bigger risk, bigger results, but such impeccable high-value trades are often carried out by pros.

[@Wlad-v2w]

People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.

[@AngellLevey]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@Wlad-v2w]

My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.

[@AngellLevey]

Thank you for this amazing tip. I just looked the name up and wrote her.

[@lokeshborse4911]

Excellent explanation in whole series just one drawback is, key takeaways are not visible due to next chapter pop-up and Varsity logo appear in front of of text

[@debarthasaikia5561]

Please move the next video thumbnail near the corner keywords are not seen

[@dheerajkamath3305]

You can pause and then zoom

[@the_yugandharr]

@@dheerajkamath3305 not possible in PC

[@AsifShaikh-yp5ld]

@@the_yugandharr then watch it on phone 📱

[@JuexT04]

An glitch for Key takeaways (Only For phone users ) See video in Horizontal mode and then Click on the discription option You will see The key takeaways and logo and next video preference will be removed

[@arnabsarkar.Med.4213]

Go full-screen, tap the comment button in full screen, close the comments... Now you can see the key takeaways

[@natherhut]

Which would be the best trading platform?

[@Shambhux7]

zerodha

[@rishavjaiswal0]

Great content

[@Emingsel]

Very informative for a new player like me

[@shivamgoyal3888]

how can I see the weightage of all 50 stocks listed in nifty 50 ?

[@bhaktichannel890]

I WANNA KNOW MORE ABOUT THE SENSEX AND NIFTY50, THIEIR FUNCTIONS, WHAT ALL THEY OWN AND WHY WE USE THESE INDEX ONLY

[@SaGa7_7]

The lessons are not visible due to the logo

[@varsitybyzerodha]

Hey Sahil, noted. You can check the Key takeaways here too: zerodha.com/varsity/chapter/what-is-a-stock-market-index/

[@achalkagwad1442]

Please make all the modules in Zerodha Varsity as Downloadable PDFs. Some modules are available as downloadable PDFs, some aren't. Thanks.

[@varsitybyzerodha]

We're working on it, Achal.

[@32raghavhs91]

Mutual funds lesson is available in zerodha varsity please 🥺🥺🥺🥺🥺 tell

[@srijeetsaha6670]

Ya it is Check their playlist

[@adityabhati2455]

Understood

[@vikramkumarsoni5283]

What is hedging?

[@sha.shankz]

crazy how in just an year nifty has gone up 3000 points thats a lot

[@HonestTalkOfPolitics]

Make video in Hindi please

[@crazygymworld1331]

❤