Positive opening Nifty 50Starting with a slight increase on Thursday, July 14 0.33%Until then 16,018.85 points, after opening. Analyzing this data along with data from previous days, the Nifty 50 Over the last three days the market has been interrupted by a negative streak of prices.
In the last seven days, the Nifty 50 has decreased 0.71% However, on the contrary, it is still maintaining an increase for a year 2.1%. The Nifty 50 stands a 12.5% Highest so far this year (18,308.10 points) and A 4.74% than its lowest price for the current year (15,293.50 points).
Stock Market Indices… Why?
A stock index An indicator that shows how the value of a set of assets is changingIt takes data from multiple companies or sectors of a market segment.
These indicators are mainly used by stock markets of various countries 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 a company. If investors lack confidence, stock prices will fall.
They also work to scale Performance of an asset manager And they allow investors to make trade-offs between return 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.
At present there are various symbols in humanity 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 a stock index measured?
Each stock index has its own calculation method, but the key component is the market capitalization that unites each firm. It is obtained by multiplying the day’s value of the stock in the relevant stock market by the total number of shares in the market.
Companies listed on stock exchange are mandatory Present the balance Its composition. This report should be made public every three or six months.
To study a stock index, one must analyze its evolution 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 may seem wrong.
If one day adds 500 points and another reaches only 20 points, the first index may appear to have performed well. However, if the former starts at 30,000 points and the other at 300 points, it can be concluded that, percentage wise, the profit for the latter was higher.
These are major stock indices
between Major US stock indices 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, the 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 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 AsiaWe have Nikki 225The Tokyo Stock Exchange consists of 225 major companies. Also, the SSE Composite Index, made up of highly relevant companies listed on the Shanghai Stock Exchange, is considered the premier in China. 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 Valuable 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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