SGX Nifty: meaning and connection with Nifty
Globalisation has touched every aspect of the financial space including how we trade in stocks. That is to say, if you are a resident of a foreign country looking to invest in Indian stocks, you can do it. This is the essence of SGX Nifty, a derivative of Nifty, the Indian benchmark index. Moreover, SGX Nifty index is also known to indicate how the Indian stock markets would perform. But by nature, a stock market is volatile. Then how can SGX Nifty indicate the performance of the Indian stock market for a given day? Let us find out that and more about a benchmark index in this article. What is a benchmark index? A benchmark index is an important indicator of how a group of stocks traded on an exchange performs. It consists of several stocks, that either belong to all the sectors or a specific segment of the economy. Depending on the stocks it represents, a benchmark index thus indicates the performance of the overall stock market or the respective sector. For instance, ...