Hopeful day Nifty 50On Tuesday, July 19, it ended with a slight increase 0.38%Until then 16,340.55 points. The Nifty 50 He scored the maximum 16,359.50 points and minimum size 16,187.05 points. Trading limit for this Nifty 50 It was between its highest point and its lowest point (maximum-minimum) on this day 1.05%.
Considering the last week, the Nifty 50 recorded an increase 1.76%That is why it is still maintaining an increase for a year 3.07%. The Nifty 50 stands a 10.75% Highest this year (18,308.10 points) and A 6.85% Above its lowest estimate for the current year (15,293.50 points).
What is a stock index and what is it for?
A stock index An indicator used to show the evolution of the price of a particular assetFor this you need to have data of different companies or segments of a part of the market.
These indicators are mainly used by stock markets of various countries Each of them can be integrated by companies with different specifications Some indices take into account only a few stocks or hundreds of stocks to determine their value, such as belonging to the same market capitalization or the same type of industry.
Stock market indices serve 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 the company. Generally, if investors lack confidence, stock prices fall.
They also work to scale Performance of an asset manager and allow investors to analyze trade-offs between return and risk; Measuring financial asset prospects or building portfolios.
These types of indicators began to be used at the end of the 19th century Journalist Charles H. Dow. He looked closely at how company stocks moved up or down together, so he created two indexes: one to 20 railroad companies (the largest industry at the time), as well as the activities of 12 different types of businesses.
There are many different symbols in humanity today They can be grouped based on their geographical location, sectors, company size or asset typeFor 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), and Tesla (TSLA). , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADPE).
How to read a code?
Each stock index has its own way of measuring, 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 outstanding 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.
Studying a stock index means paying attention to its variations over time. New indices always start with a fixed value based on stock prices on your start date, but not everyone follows this pattern. Hence, it leads to failures.
If one index scores 500 points for a day and another adds 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 considered more significant.
Major stock indices
between Major US stock indices There is the Dow Jones Industrial Average Dow Jones, 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. In addition, 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 IndexThe Shanghai stock market is composed of the most relevant companies and can be considered the most representative of China. Same role played 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 one-third of them are owned by CEO Carlos Slim.
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.
Finally, there are other categories such as 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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