Market Indices: NASI & NSE 20

What Are Market Indices?

A market index is like a thermometer for the stock market — it tells you the overall health and direction.

NASI (NSE All Share Index)

NASI tracks ALL listed companies, weighted by market capitalization. If NASI goes up, it means the overall market value of listed companies is increasing.

NSE 20 Share Index

The NSE 20 tracks only the 20 most actively traded stocks. It was the original benchmark and is still widely referenced.

Why Indices Matter

• Benchmark — Compare your portfolio performance against NASI. If your portfolio returned 15% but NASI returned 20%, the market beat you.
• Market sentiment — Rising indices signal investor optimism; falling indices signal caution.
• Economic indicator — Stock markets often move ahead of the economy.