#firstdealofthenewyearFateema Equity indexes are essentially benchmarks that track the performance of a specific group of stocks. They provide a standardized way to measure the overall health and movement of a particular segment of the stock market. * Imagine a basket filled with different fruits. An equity index is like that basket, but instead of fruits, it holds stocks of various companies. * Each fruit represents a stock. The price of the fruit can go up or down, just like the price of a stock. * The overall weight of the basket changes as the prices of the fruits change. This change in weight represents the change in the value of the equity index.