A day without changes Nifty 50The day ended with a twist on Friday, September 2 0.02%Until then 17,539.45 points. The Nifty 50 reached a peak of 17,643.85 points and the minimum number 17,476.45 points. Trading limit for this Nifty 50 Between its highest point and its lowest point (max-min) during this day 0.95%.
Compared to last week, the Nifty 50 Marks increase 0.1%So on year-on-year basis it still maintains a rise 4.99%. The Nifty 50 stands a 4.2% Highest so far this year (18,308.10 points) and A 14.69% 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 It is an indicator used to track the price evolution of a set of assets.So it collects data from different 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 Some indices consider only a few stocks to determine their value, such as similar market capitalization or belonging to the same type of business, 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, 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 carefully studied 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 12 measures of other types of businesses.
There are many different symbols in humanity today They can be grouped according to their 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), 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 value of the relevant stock market on the day of trading 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 be published every three or six months.
Studying a stock index involves paying attention to its 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. Hence, it leads to failures.
If one index gains 500 points in a day and another gains 20 points, the first index may appear to have performed better. However, if the former starts at 30,000 points and the other at 300 points, percentage wise the gains for the latter can be calculated to be more significant.
Major stock indices
between Major US stock indices There is the Dow Jones Industrial Average Dow Jones, in which 30 companies are members. Also, the S&P 500, which includes the 500 largest companies listed on the New York Stock Exchange. Finally comes Nasdaq 100It covers 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 of the best-performing 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. There is more SSE Composite Index, which is listed as China’s predecessor, is 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 35 most influential 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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