Purpose of Index trading

Trading of a stock reflects investors interest and confidence in it and any rise and fall in it affects companys health.If it rises,company becomes rich so do the investors and vice versa.
I want to know what purpose does the trading of an index serve ? Traders gain and lose on it,its OK…but ultimately what is the rationale behind index trading. If I am trading an index,what am I actually trading ?
Secondly, if Nifth and Banknifty are tradable,why isn’t Sensex ?

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Sensex is also tradable from last month. They introduced weekly contracts but they are not available for trading in Zerodha yet.

Index options are more liquid than stock options. As a retail investor, I choose index options because it is cheaper compared to stock options.

OTM stock options are cheaper, but most of the time, they erode the premium and result in loss.

Because its easy to have view on overall market, rather than learn each stock as they are all different

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Sometimes I feel , traders are long on equities and short on index thus they hedge their wealth.
That’s what I do and get a handsome return on monthly basis.

Sensex future was tradeable a decade ago. I myself have initiated trades in it. Although volume very thin just like nifty IT futures . Gradually it become obselete.

By trading nifty futures, you are trading nifty 50, which makes the top 50 companies of India. You can be long or short, depending on your view on corporate India.