Positive session Nifty 50It closed slightly higher on Wednesday, August 3 0.25%Until then 17,388.15 points. The Nifty 50 Hit the maximum 17,407.50 points and minimum size 17,225.85 points. Trading limit for this Nifty 50 Between its highest point and its lowest point (max-min) during this day 1.04%.
In the last seven days, the Nifty 50 Marks increase 4.48%It still maintains an increase for a year 10.31%. The Nifty 50 stands a 5.02% Highest so far this year (18,308.10 points) and A 13.7% than its lowest price for the current year (15,293.50 points).
What is a stock index and what is it for?
A stock index An indicator that shows how the value of a set of assets is changingIt takes 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 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 a 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 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.
Currently there are various indices in our economy Aggregation can be done by geography, 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 is stock index measured?
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 security 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. This report should be provided every three or six months.
To read a stock index, you need to analyze its changes over time. Current indices are always opened with fixed value based on stock prices on your start date, but not everyone follows this pattern. So, it can be misleading.
If one index grows by 500 points in a day and another gains only 20 points, it may look like it has outperformed the first index. 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.
These are 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, covering 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, most pending 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 Asian continentWe have Nikki 225The Tokyo Stock Exchange consists of 225 major companies. There is more SSE Composite Index, which can be considered the most significant in China, is 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 American regionYou have CBIIt contains 35 most powerful companies of the Mexican Stock Exchange (BMV).. At least a third of them are owned by boss 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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