Sectoral Indices

Why Is It Important?

Get all the market sentiments rounded of in the sectorial movements. Which sector was bullish and which sector was bearish? Capitalize on each and every opportunity, track 52 week high or low for each and every sector for both NSE & BSE.

How will it help?

Sectoral indices represent the average collective movements of the stocks of respective domains. For eg: Nifty Bank value is algorithmically derived from the stock price movements of all the banks scripts listed on NSE.

Suppose there is a positive movement in the Bank Nifty in a day, it would imply a positive sentiment in the market with respect to the Bank Stocks and thus investing in a banking script might prove beneficial in the same situation.

Investing via sectoral indices helps in capitalizing over the positive sentiments of the sector along with the diversification amongst the different company stocks of same domain. In reference to the above Bank Nifty example, sectorial diversification will help in eliminating the risk associated with any specific bank script which might arise due to negative corporate actions or news of the mentioned company but simultaneously will help get an advantage of the positive movements in all the Bank listed stocks.

52 Week Range

This is subjective to the pattern of investing which varies investor to investor. 52 week High Low tells us if the stocks are at lowest possible value in the provided range and thus Investor might choose to invest at the lowest possible value in the 52 week range. Similarly, if the index is at all time high investor might take a short position on it thus earning the premium on squaring off.