The day starts without changes Nifty 50It begins with a variation on Tuesday, July 26 0.01%Until then 16,632.90 points, after the initial session begins. Comparing this data with previous days, the Nifty 50 Reversing the value of the previous day, in which there was a decrease of 0.69%, showing that a clear trend could not be established in recent times.
Considering the last week, the Nifty 50 indicates rise 1.79%So it still maintains an increase in the last year 5.11%. The Nifty 50 stands a 9.15% Highest this year (18,308.10 points) and A 8.76% Above its lowest estimate so far this year (15,293.50 points).
Stock Market Indices… Why?
A stock index An indicator that measures the evolution of the price of a set of assetsFor this you need to have the data of various companies or sectors of a part of the market.
These indicators are mainly used by the stock markets of different countries of the world Each of them can be aggregated by entities with specific characteristics There are some indices that take into account only a few stocks or hundreds of stocks to determine their value, such as those with similar market capitalization or belonging to the same industry.
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 the 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.
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.
Currently there are various codes They can be grouped according to their geographical location, sectors, company size or type of assetFor 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 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 derived by multiplying the value of the relevant stock market on the day of operation by the total number of shares held by the investors.
Companies listed on stock exchange are mandatory Present the balance Its composition. An appropriate report should come out every three or six months.
Studying a stock index also means analyzing its evolution 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. So, it can be misleading.
If one index sees a 500-point increase in one day while the other gains only 20, the first index may appear to have performed better. However, if the previous day starts at 30,000 points and the other at 300 points, it can be concluded that in percentage terms, the gains for the latter are substantial.
These are major stock indices
between Major stock indices in the US There is the Dow Jones Industrial Average Dow Jones, made up of 30 companies. Also, the S&P 500, which includes the 500 largest companies listed on the New York Stock Exchange. Finally comes Nasdaq 100It is associated with 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, which is listed as the most significant in China, is made up of the most important 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 35 most influential 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 categories such as global stock market 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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