Read it here : http://investorline.co.in/blog/?p=1166
Stiching Sensex
In recent months, the Sensex has created headline after headline as it
has marched seemingly unstoppable from 15,000 to 16,000 to 19,000 and,
for a brief moment, 20,000.
Even people who don't follow stock markets closely may have a pretty
good idea of the Sensex value. But what exactly is the Sensex? And
what can indices like the Sensex and Nifty tell you about stock market
movements?
What is a stock-market index?
A stock-market index is simply a convenient summary of market prices.
There are thousands of stocks whose prices fluctuate up and down every
day.
An index helps make sense of this chaos and gives you a single number
which tells you how well the market is performing compared with
earlier periods.
Read it further : http://investorline.co.in/blog/?p=1166
