February 8, 2023

Great Indian Mutiny

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The Indian market started this July 19 with a downward trend

Parish Session for Nifty 50Opening with a waterfall on Tuesday, July 19 0.56%Until then 16,187.05 points, after the initial session begins. Comparing the data with the previous sessions, the Nifty 50 Completes two consecutive sessions with a positive trend.

Last week, the Nifty 50 Indicates an increase 0.8%So on year-on-year basis it is still maintaining high 2.1%. The Nifty 50 stands a 11.59% Highest this year (18,308.10 points) and A 5.84% 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 It is an indicator that shows how the value of a particular asset is developingIt uses data from different companies or sectors of a segment of the market.

These indicators are mainly used in stock markets of each country Each of them can be aggregated by entities with specific characteristics In addition, some indices consider only a few stocks to determine their value, or others consider hundreds of stocks, such as similar market capitalization or belonging to the same 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 the company. If investors lack confidence, equity costs will fall.

They also work to scale Performance of an asset manager and allow investors to make comparisons 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.

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There are various indices in our economy today 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), 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 operation by 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 published every three or six months as appropriate.

Reading a stock index means taking into account its changes over time. Current indices always appear with a fixed value based on stock prices on your start date, but not everyone follows this pattern. Hence, it leads to failures.

If one index gains 500 points in one day and another gains 20 points, the first index may appear to have performed better. But if the previous day starts at 30,000 points and the other at 300 points, you can see that in percentage terms, the gains for the latter are more significant.

What are major stock indices?

between Major stock indices in the US There is the Dow Jones Industrial Average Dow Jones, made up of 30 companies. Similarly, 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.

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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 containing the most important 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 AsiaMajor stock indices Nikki 225The Tokyo Stock Exchange consists of 225 major companies. Also, the SSE Composite Index, which is primarily listed in China, is made up of highly 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 powerful 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.

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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