What are sector indices?

00:57 Mins Read

This video explores the concept of sectoral indices in the financial markets.

Transcript

To understand this, let's break it down. Firstly, what is a sector? A sector can be defined as a part of the economy. And what are indices? They are indicators that reflect the performance of the market as a whole or of a certain segment of the market. So, what are sector indices? Putting it together, sector indices are indicators that are benchmarked to the different sectors of the economy. When a sector performs well, the related sector index also goes up. And if a sector performs poorly, the related sector index goes down. Want to learn more about the different sector indices in the market? Head to the next chapter in this module.

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