A perfect start to the day Nifty 50Opens with climbs on Tuesday, August 30 0.59%Until then 17,414.95 points, after the initial session begins. Regarding the variations of this day with respect to previous dates, The Nifty 50 Reversing the data of the previous session, when it closed with a decrease of 0.21%, it failed to establish a stable trend in recent times.
If we consider last week’s data, the Nifty 50 Accumulates decrease 0.92%; It still maintains an increase for a year 4.69%. The Nifty 50 stands a 4.88% Highest so far this year (18,308.10 points) and A 13.87% than its lowest price for the current year (15,293.50 points).
Stock Market Indices… Why?
A stock index An indicator used to show the evolution of the value of a particular assetIt collects data from different companies or sectors of a part of the market.
These indicators are mainly used by stock markets of countries 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 investors to make trade-offs between return and risk; Measure financial asset prospects or build 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 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 operating 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), Tesla (TSLA). , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADPE).
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’s value of the shares in the relevant stock market by the total number of shares outstanding in the market.
Listed companies are required Present the balance Its composition. This report should be published every three or six months.
To read a stock index, you need to examine its changes over time. Current indices always start 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 scores 500 points in a single day and the other scores only 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, it can be concluded that in percentage terms, the profit for the latter is greater.
These are major stock indices
between Major stock indices in the US There is the Dow Jones Industrial Average Dow JonesConsisting of 30 companies., The S&P 500, which includes the 500 largest companies listed on the New York Stock Exchange. Finally, appear 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 of the most prominent 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, which is listed as the most significant in China, is made up of the most relevant 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 American regionYou 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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