A good start to the day Nifty 50Opening on Monday 12 September with a slight increase Until then 17,890.85 points, after opening. Comparing the data with previous days, the Nifty 50 Accumulates three consecutive sessions in positive digits.
In the last seven days, the Nifty 50 Records the rise 1.27%That is why it is still maintaining high on year-on-year basis 2.95%. The Nifty 50 stands a 2.28% Highest this year (18,308.10 points) and A 16.98% than its lowest price for the current year (15,293.50 points).
Stock Market Indices… Why?
A stock index It is an indicator that shows how the price of a particular asset is developing.So it 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 integrated by companies with different specifications In addition, there are some indices that take into account only a few stocks to determine their value, or consider hundreds of stocks, such as similar market capitalization or belonging to the same type of business.
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 values fall.
They also work to scale Performance of an asset manager and allow investors to make comparisons 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, 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.
There are various indices in our economy today 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), 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 element is the market capitalization that unites each firm. 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 notified every three or six months as appropriate.
To study a stock index, one must observe its variations over time. Current indices always start with a fixed value based on bond prices on your start date, but not everyone follows this pattern. So, it can be confusing.
If one index scores 500 points for a day and another adds 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, you can see that in percentage terms, the profits for the latter are higher.
What are major stock indices?
between Major US stock indices There is the Dow Jones Industrial Average Dow Jones, made up of 30 companies. Similarly, the S&P 500, covering the 500 largest companies listed on the New York Stock Exchange. Finally, the 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. He too 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 continentMajor stock indices Nikki 225The Tokyo Stock Exchange consists of 225 major companies. There is more SSE Composite Index, is considered the most solid in China, made up of highly relevant companies listed 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 The 35 Best 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 types of 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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