Good start to the day BSE Sensex 30The session starts with a slight increase on Monday, August 1 0.44%Until then 57,823.10 points, after opening. If we compare this number with previous days, the BSE Sensex 30 Add four consecutive positive dates.
Counting the last seven days, the BSE Sensex 30 Accumulates a rise 3.69% And still maintains the increase for a year 10.26%. The BSE Sensex 30 stands a 5.69% Highest so far this year (61,308.91 points) and A 12.58% Above its minimum value for the current year (51,360.42 points).
What is a stock index and what is it for?
A stock index An indicator that shows how the value of a set of assets is changingSo it takes data from multiple companies or sectors of a segment of the market.
These indicators are mainly used in stock markets of each country Each of them can be aggregated by entities with specific characteristics Some indices, such as those with similar market capitalization or belonging to the same industry, consider only a few stocks to determine their value, or there are some indices that consider hundreds of stocks.
Stock market indices are active An indicator of confidence in the stock market, business confidence, the health of the national and global economy, and the performance of investments in stocks and shares of a company. If investors lack confidence, stock prices will fall.
They also work to scale Performance of an asset manager and allow a comparison to be made between profit and risk; Measuring financial asset prospects or building portfolios.
This type of indicators began to be used at the end of the 19th century Journalist Charles H. Dow. He carefully studied how company stocks moved up or down together in price, so he created two indexes: one to 20 railroad companies (the largest industry at the time), as well as 12 measures of other types of businesses.
There are many different symbols in humanity today They can be aggregated according to their geography, sectors, size of companies or type of asset.For example, the US Nasdaq index is composed of the 100 largest technology-related companies such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA). , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADPE).
How is a stock index measured?
Each stock index has its own calculation method, but the key factor is the market capitalization of each company that integrates it. It is obtained by multiplying the day’s value of the bond in the relevant stock market by the total number of shares in the market.
Companies listed on stock exchange are mandatory Present the balance Its composition. The report should be published every three or six months.
To read a stock index, you need to analyze its changes over time. New indices are always opened with a fixed value based on stock prices on your start date, but not everyone follows this pattern. Hence, it leads to errors.
If one index rises 500 points for a day and the other gains only 20 points, the first index may appear to have performed better. But if the previous day starts at 30,000 points and the other at 300 points, percentage wise the gains for the latter can be assumed to be more significant.
What are major stock indices?
between Major US stock indices There is the Dow Jones Industrial Average Dow Jones, which is made up of 30 companies. Similarly, the S&P 500, which includes the 500 largest companies listed on the New York Stock Exchange. Finally comes Nasdaq 100It brings together 100 largest non-financial corporations.
On the other hand, very important codes Europe is Eurostax 50, which includes the 50 largest companies in the Eurozone. On the other hand, the DAX 30, the main German index with the strongest companies on the Frankfurt Stock Exchange; The FTSE100 From the London Stock Exchange; The ACC 40 of the Paris Stock Exchange; And this IBEX 35of the Spanish Stock Exchange.
In AsiaWe have Nikki 225The Tokyo Stock Exchange consists of 225 major companies. There is more SSE Composite Index, considered the first in China to be made up of the most prominent companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning Hang Cheung Index in Hong Kong and Cosby In South Korea.
talking about Latin AmericaYou have CBIIt contains The 35 Best Companies of the Mexican Stock Exchange (BMV).. At least a third of them are part of boss Carlos Slim’s estate.
The other is Bovespa, made up of the 50 most important companies on the São Paulo stock market; The merval From Argentina; The IPSA From Chile; The MSCI COLCAP From Colombia; The IBC Made up of 6 companies from Caracas, Venezuela.
Similarly, there are other types of global stock indices MSCI Latin AmericaIncludes 137 of the most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Similarly, there is MSCI World, which includes 1,600 companies from 23 developed countries; The MSCI Emerging Markets, made up of more than 800 companies from developing countries; And this S&P Global 100Made up of the 100 most powerful multinational corporations on the planet.
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