How Many Index in Indian Stock Market: A Complete Beginner’s Guide
Have you ever wondered what those numbers flashing on TV screens mean when they say, “The Sensex is up by 500 points”? That’s the stock market index — a powerful indicator that tells us how the stock market is performing. But do you know how many indexes exist in the Indian stock market, and why they matter so much?
In this article, we’ll explore everything about what is index in stock market, how they work, the major Indian stock market indices, and how they guide investors like you and me in making smart trading decisions.
Discover what is index in stock market, how many index in Indian stock market, top Indian stock market index, and best trading app in India for beginners.
What is an Index in the Stock Market?
To put it simply, a stock market index is like a report card of the stock market. It measures the performance of a group of selected companies’ stocks.
Think of it like this — if the Indian stock market is a big school, each company is a student, and the index shows the average score of the top students.
So when the Sensex or Nifty goes up, it means the majority of these companies are performing well, and vice versa.
Why Do Stock Market Indices Matter?
Stock market indices act as a benchmark for investors. They help you:
- Understand overall market trends.
- Compare your portfolio’s performance with the broader market.
- Make informed investment decisions.
- Identify growth sectors.
In short, they’re the heartbeat of the stock market, reflecting the country’s economic health.
How Are Stock Market Indices Created?
Indices aren’t random — they’re built scientifically. Here’s how:
- Selection of Companies: Only companies meeting certain criteria (market capitalization, liquidity, etc.) are chosen.
- Weightage: Each company gets a weight based on its size (market cap).
- Calculation Method: Most Indian indices use the free-float market capitalization method.
This ensures the index reflects the true performance of the stock market.
Types of Stock Market Indices in India
India has multiple stock indices categorized based on their purpose and coverage. The main categories include:
- Benchmark indices (e.g., Sensex, Nifty 50)
- Sectoral indices (e.g., Nifty Bank, BSE IT)
- Thematic indices (e.g., Nifty ESG)
- Broad market indices (e.g., Nifty 500)
- Strategy-based indices (e.g., Nifty Low Volatility 30)
Each serves a different purpose for investors and traders.
How Many Index in Indian Stock Market?
Here’s the million-rupee question — how many indices are there in the Indian stock market?
As of 2025, India has over 100 stock market indices, including benchmark, sectoral, thematic, and strategy-based indices, managed primarily by:
- BSE (Bombay Stock Exchange) – over 50 indices.
- NSE (National Stock Exchange) – over 90 indices.
Together, they track various aspects of the Indian economy and market performance.
Major Stock Market Indices in India
The most recognized Indian stock market indices are:
- BSE Sensex – 30 large companies listed on BSE.
- Nifty 50 – 50 leading companies on NSE.
- Nifty Bank – tracks 12 major banking stocks.
- BSE 500 – covers 500 large, mid, and small-cap companies.
- Nifty Midcap 100 – measures performance of mid-sized companies.
These indices are the go-to indicators for most investors.
Understanding Sensex: The Barometer of India’s Economy
The Sensex, short for Sensitive Index, was launched in 1986 by the Bombay Stock Exchange (BSE).
It includes 30 top-performing companies from various sectors such as IT, banking, and manufacturing.
Because these companies represent India’s corporate sector, the Sensex acts as a mirror of the Indian economy. When it rises, it signals optimism; when it falls, it reflects caution among investors.
Nifty 50: India’s Most Popular Stock Market Index
The Nifty 50, launched in 1996, is the flagship index of the National Stock Exchange (NSE).
It represents 50 large-cap companies across 13 sectors, offering a comprehensive view of the Indian economy.
If the Sensex is the “heartbeat,” Nifty 50 is the pulse of the Indian stock market. Together, they dominate financial news and investor discussions.
Other Prominent NSE Indices
Apart from Nifty 50, NSE offers several other indices:
- Nifty Next 50 – companies likely to enter Nifty 50 in the future.
- Nifty 100, 200, 500 – covering a wider market base.
- Nifty Smallcap & Midcap Indices – tracking smaller companies.
- Nifty Bank, Nifty IT, Nifty FMCG – sector-based performance indices.
These help investors choose specific segments to invest in, depending on their goals.
Sectoral Indices in India
Sectoral indices focus on specific industries. Some popular ones include:
- Nifty Bank Index – banking stocks.
- Nifty Pharma Index – pharmaceutical companies.
- Nifty IT Index – technology sector.
- Nifty Auto Index – automobile manufacturers.
- BSE FMCG Index – fast-moving consumer goods.
These indices help investors track sector-specific trends and opportunities.
Thematic and Strategy-Based Indices
These indices group companies based on themes or strategies rather than sectors.
Examples include:
- Nifty ESG 100 – focuses on companies following environmental and social governance standards.
- Nifty Alpha 50 – selects stocks based on alpha generation potential.
- Nifty Low Volatility 30 – includes stocks with low price fluctuations.
These are perfect for investors who prefer specific investment styles or values.
Broad Market Indices
Broad market indices cover companies across multiple market caps.
For instance:
- Nifty 500 – includes 500 companies across sectors and sizes.
- BSE 500 – similar but on the BSE.
- Nifty Total Market Index – reflects the overall Indian market performance.
They give a holistic view of how the entire market is moving.
Regional and Custom Indices
Some indices are designed to represent specific regions or customized portfolios.
For example:
- BSE SME IPO Index – tracks small and medium enterprises.
- Nifty India Manufacturing Index – focuses on manufacturing companies.
- Nifty India Consumption Index – reflects consumption trends.
These indices are great for niche investors who prefer focused exposure.
How Stock Market Indices Help Traders and Investors
Indices are not just numbers — they’re decision-making tools.
They help you:
- Track performance of markets or sectors.
- Diversify investments.
- Analyze historical trends.
- Compare fund performance.
In essence, indices make investing simpler, smarter, and more transparent.
Using Trading Apps in India to Track Indices
Today, you don’t need to watch TV tickers to track indices. Modern trading apps in India make it easy.
Popular apps like Firstock, Zerodha, Groww, Angel One, and Upstox provide real-time data on:
- Sensex, Nifty 50, and sectoral indices.
- Live charts and historical trends.
- Personalized alerts and market insights.
With these trading apps in India, even beginners can stay informed and trade confidently from their smartphones.
Future of Indian Stock Market Indices
India’s financial markets are growing fast, and with it, new indices are emerging to track:
- Sustainability-focused companies (ESG indices)
- Innovation-driven sectors like EVs and AI
- Global exposure indices
The future will likely see more AI-powered and custom-built indices, giving investors even more targeted insights.
Conclusion
Stock market indices are like the compass guiding investors through the financial landscape. From the iconic Sensex and Nifty 50 to hundreds of specialized indices, they collectively shape our understanding of market health and investment potential.
Whether you’re a seasoned trader or a beginner using a trading app in India, knowing how many indices exist in the Indian stock market helps you make smarter, data-driven decisions.
So next time someone says “The Nifty is up,” you’ll know exactly what that means — and how it affects your investments.
FAQs
- What is an index in the stock market?
An index in the stock market measures the performance of a group of selected companies’ stocks, reflecting the market’s overall trend. - How many index in Indian stock market?
As of 2025, there are over 100 indices in India across BSE and NSE, including benchmark, sectoral, thematic, and strategy-based indices. - What are the two main stock market indices in India?
The two main indices are BSE Sensex and NSE Nifty 50, representing large-cap companies and overall market performance. - How can I track Indian stock market indices?
You can easily track indices using trading apps in India like Firstock, Zerodha, or Groww, which provide real-time data and charts. - Why are stock market indices important for investors?
They help investors monitor market trends, compare performance, and make informed decisions about where to invest or trade.
