Question
What is the name of the index that measures the
performance of small-cap companies in the Indian stock market?Solution
The NSE Smallcap index is a market capitalization-weighted index that measures the performance of small-cap companies in the Indian stock market. Small-cap companies are those companies that have a market capitalization between ₹50 crore and ₹500 crore. The index comprises 250 companies and is calculated using free float market capitalization weighted methodology. The index provides a benchmark for investors who are interested in investing in small-cap companies in India. Hence, option D is correct.
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