The day opened unchanged Nifty 50The session begins with a variation on Monday, September 5 0.04%Until then 17,546.45 points, after the initial session begins. Compared to earlier dates, the Nifty 50 With this data he snaps the streak of the previous two days.
If we consider last week’s data, the Nifty 50 Accumulates a drop 0.07%; Nevertheless, it still maintains a high for a year 3.63%. The Nifty 50 stands a 4.16% Highest so far this year (18,308.10 points) and A 14.73% Above its lowest estimate for the current year (15,293.50 points).
Stock Market Indices… Why?
A stock index An indicator that shows how the value of a given asset is developingSo you need to have data of different companies or segments 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 integrated by organizations with specific needs Some indices consider only a few stocks to determine their value, such as those with similar market capitalization or belonging to the same type of industry, 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 the company. If investors lack confidence, equity costs will fall.
They also work to scale Performance of an asset manager and allow analysis of trade-offs between profitability 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 carefully studied how company stocks moved up or down in price, so he created two indexes: one to 20 railroad companies (the largest industry at the time), as well as 12 other types of businesses.
Today there are many different codes They can be grouped according to their geography, 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 it calculated and how to read them?
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 derived by multiplying the day’s value of the shares in the stock market relative to the total number of shares held by the investors.
Companies listed on stock exchange are mandatory Present the balance Its composition. This report should be published every three or six months as appropriate.
When reading a stock index, one must be careful about changes over time. Current indices always start with a fixed value based on security prices on your start date, but not everyone follows this pattern. So, it can be confusing.
If one index gains 500 points in a day and another gains 20 points, the first index may appear to have performed better. But if the former starts with 30,000 points and the other with 300 points, percentage wise the gains for the latter would be greater.
Major stock indices
between Major US stock indices There is the Dow Jones Industrial Average Dow Jones, in which 30 companies are members. Similarly, the S&P 500, which includes the 500 largest companies listed on the New York Stock Exchange. Finally, don’t forget Nasdaq 100It brings together 100 largest non-financial corporations.
On the other hand, most pending 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 Asian continentWe have Nikki 225The Tokyo Stock Exchange consists of 225 major companies. Also, the SSE Composite Index, is considered the strongest in China, made up of the most prominent companies on the Shanghai Stock Exchange. Same role played Hang Cheung Index in Hong Kong and Cosby In South Korea.
talking about Latin AmericaYou have CBIIt contains 35 Most Valuable 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.
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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