Indices are vital statistical tools that reflect changes in specific markets or market segments. They comprise a thoughtfully selected group of securities, often stocks, acting as a representative sample. Consider an index like a carefully curated basket of stocks offering a glimpse into the overall market’s health. For instance, an index “A” containing 50 frequently traded stocks provides insight into the broader market’s movement. Stock indices serve as performance benchmarks for investors, allowing comparisons between their portfolios and the overall market or specific sectors. They also act as indicators of market sentiment, with fluctuations signaling investor attitudes toward the economy and various industries. Policymakers also rely on indices to assess market health and guide economic decisions.