Stock Market Index
A stock market index is a barometer of market behaviour. It measures overall market sentiment through a set of stocks that are representative of the market . It reflects market direction and indicates day-to-day fluctuations in stock prices. An ideal index must represent changes in the prices of securities and reflect price movements of typical shares for better market representation. In the India markets the BSE, SENSEX and NSE, NIFTY are important indices.
Some important global stock market indices are :
`*` Dow Jones Industrial Average is among the oldest quoted stock market index in the US.
`*` NASDAQ` Composite Index is the market capitalisation weightages of prices for stocks listed in the NASDAQ stock market.
`*` S and P 500 Index is made up of 500 biggest publicly traded companies in the US. The S and P 500 is often treated as a proxy for the US stock market.
`*` FTSE 100 consists of the largest 100 companies by full market value listed on the London Stock Exchange. The FTSE 100 is the benchmark index of the European market.
What is meant by NSE.

Explanation

National Stock Exchange of India (NSE) NSE is the largest, most modern, technology driven exchange, incorporated in 1992 and recognised as stock exchange in April 1993. It was set -up by leading financial institutions, banks, insurance companies and other financial intermediaries. Its Board comprises of senior executives from promoter institutions and eminent professionals.