March 24, 2023

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Close Nifty 50: The Indian market closed positive on March 16

Favorable day Nifty50It ended on Wednesday 16th March with a big increase 1.87%Until then 16,975.35 points. The Nifty50 Scored the maximum amount 16,987.90 points And the minimum amount 16,837.85 points. Trade limit for this Nifty50 During this day it was between its highest point and its lowest point (maximum-minimum) 0.88%.

For the past seven days, The Nifty50 Records the rise 3.85%So for a year it has maintained an even higher rise 12.43%. The Nifty50 Stands a 7.28% This year is the highest ever (18,308.10 points) and a 7.01% Above its minimum estimate for the current year (15,863.15 points).

What is a stock code and why?

A stock code An indicator used to show the evolution of the value of a given assetIt therefore uses data from different companies or segments of a segment of the market.

These indicators are mainly used by the stock markets of different countries They can each be integrated by companies with specific characteristics Homogeneous market capitalization or belonging to the same industry, in addition, some indices consider only a few stocks to determine their value or others hundreds of stocks.

Stock market indices are active An indicator of stock market confidence, business confidence, the health of the national and global economy, and the effectiveness of investing in stocks. And shares of the company. If investors are not optimistic, stock prices will fall.

They also work to measure The performance of a property manager And allow investors to compare returns to risk; Measuring financial asset opportunities or creating portfolios.

These types of indicators began to be used in the late 19th century Journalist Charles H. Dove. He meticulously observed how company shares rose or fell in price together, so he developed two indices: one to 20 railroad companies (since they were the largest industry at the time), as well as the operations of 12 types of businesses.

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There are various codes today They can be grouped according to their location, departments, company size or asset typeFor example, the US Nasdaq Index is made up of 100 major companies associated with technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), and Tesla (TSLA). , Nvidia (NVDA), PayPal (POPL), Comcast (CMCSA), Adobe (ATPE).

How to read a code?

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 value of the bond in the corresponding stock market by the total number of shares in circulation in the market.

Companies listed on the stock exchange are mandatory Present the balance Its composition. This report should be published every three or six months.

To read a stock index, you need to look at its changes over time. Current indices will always open with a fixed value based on stock prices On your start date, but not everyone follows this method. Therefore, it may be a source of misunderstanding.

If one index grows 500 points a day and the other adds 20 points, the first index may seem to perform better. However, if the previous day started at 30,000 points and the other at 300 points, it can be assumed that in percentage terms, the gains for the latter were higher.

What are the key stock indices?

Between Major US stock indices Dow Jones has Industrial Average Dow Jones30 companies are a part of this S&P 500, Which includes the 500 largest companies on the New York Stock Exchange. Finally, appear Nasdaq 100It brings together 100 major non-financial institutions.

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On the other hand, the most important codes Europe Is Eurostocks50, Which includes 50 large companies in the eurozone. On the other hand, the DAX 30, The leading German index with strong companies on the Frankfurt Stock Exchange; The FTSE100 From the London Stock Exchange; The ACC40 Of the Paris Stock Exchange; And this IBEX 35Of the Spanish Stock Exchange.

On Asian ContinentWe have Nikki 225The Tokyo Stock Exchange is made up of 225 large companies. Also, The SSE composite code, Made up of the most relevant companies in the Shanghai Stock Exchange, is considered primarily in China. Similarly, it is worth noting Hang Seung Index In Hong Kong and Cosby In South Korea.

Talks about Latin AmericaYou have CBIIt contains The 35 most integrated companies on the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of President Carlos Slim.

The other is The Bowesba, Made up of the 50 most important companies in the Sao Paulo stock market; The merval From Argentina; The IPSA From Chile; Bogota’s IGBC; The IBC Caracas is made up of 6 companies based in Venezuela.

Similarly, there are other types such as global stock market indices MSCI Latin AmericaIncludes 137 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 100This is made up of the 100 most powerful multinationals on the planet.

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