February 8, 2023

Great Indian Mutiny

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The Indian stock market closed lower on September 1

Bad day for him BSE Sensex 30It closed with a significant fall on Thursday, September 1 1.29%Until then 58,766.59 points. The BSE Sensex 30 reached the maximum 59,309.79 points And at the very least 58,522.57 points. Trading limit for this BSE Sensex 30 Between its highest point and its lowest point (max-min) during this day 1.33%.

Compared to last week, the BSE Sensex 30 has decreased 0.54%; On the contrary, it has accumulated over the year 5.04%. The BSE Sensex 30 stands a 4.15% Highest so far this year (61,308.91 points) and A 14.42% Above its minimum value for the current year (51,360.42 points).

What is a stock index and what is it for?

A stock index An indicator that shows how the price of a particular asset is developingIt collects data from various companies or segments of a market segment.

These indicators are mainly used by stock markets of various countries Each of them can be aggregated by entities with specific characteristics In addition, there are some indices that take into account only a few stocks to determine their value, or others that consider hundreds of stocks, such as belonging to the same market capitalization or the same type of industry.

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. Generally, if investors lack confidence, stock prices fall.

They also work to scale Performance of an asset manager and allow investors to make trade-offs between return and risk; Measuring financial asset prospects or building portfolios.

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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 aggregated according to their geographical location, sectors, company size or type of asset.For 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 calculation method, but the key element is the market capitalization that unites each firm. It is obtained by multiplying the day’s value of 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 published every three or six months.

When reading a stock index, you should note its changes over time. New indices are always opened with a fixed value based on the securities prices on your start date, but not everyone follows this pattern. Hence, it leads to errors.

If one day gains 500 points and another adds 20 points, the first index may appear to have performed well. However, if the previous day starts at 30,000 points and the other at 300 points, percentage wise the gains for the latter can be considered more significant.

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These are major stock indices

between Major US stock indices There is the Dow Jones Industrial Average Dow Jones, which is made up of 30 companies. Also, the S&P 500, covering the 500 largest companies listed on the New York Stock Exchange. Finally, don’t forget Nasdaq 100It covers 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 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. There is more SSE Composite Index, which appears to be China’s forerunner, is 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 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.

Also, there are other types of global stock indices such as MSCI Latin AmericaIncludes 137 of the most important companies in Brazil, Chile, Colombia, Mexico and Peru.

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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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