Log in small movements for the BSE Sensex 30which opens on Friday, August 19 with a change of the 0.09%to the 60,351.23 points, after opening. Compared to previous sessions, the BSE Sensex 30 chains of six consecutive sessions in positive digits.
Considering the last seven days, the BSE Sensex 30 accumulation increase i 1.72%so in year-on-year terms it keeps piling up 8.86%. The IS BSE Sensex 30 one stands 1.56% below its maximum this year (61,308.91 points) and a 17.51% above its minimum valuation so far this year (51,360.42 points).
Stock market indices… what?
stock index it is an indicator that shows how the value of a certain set of assets changesfor which you need to have data from different companies or market sectors.
These indicators are mainly used by the stock exchanges of each country and firms with different specialties can integrate each such as having a similar market capitalization or belonging to the same industry, likewise, there are some indexes that consider only a handful of shares to determine their value or others that consider hundreds of shares.
Stock market indices act as an indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of investments in shares and entity shares. In general, if investors lack confidence, stock costs tend to fall.
They also work for the asset manager performance and enable investors to compare profitability and risk; the opportunities of measuring a financial asset or creating portfolios.
This type of indicators began to be used at the end of the 19th century after journalist Charles H. Dow. He looked carefully at how company stocks tended to go up or down together in price, so he created two indexes: one of the top 20 railroad companies (since it was the industry’s largest more at the time), as well as 12 acts of other types. of affairs
Currently in our economy there are various indices and they can also be grouped by geography, sectors, company size or asset typeFor example, the US Nasdaq index consists of the 100 largest companies mainly related to technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA ). , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).
How is it calculated and how to read them?
Each stock index has its own calculation method, but the main factor is the market capitalization of each company that integrates it. This is obtained by multiplying the bonus day value on the corresponding stock market by the total number of shares on the market.
Companies listed on the stock exchange are required to present a balance of its composition. This report must be delivered every three to six months, as the case may be.
To read a stock index one must note its changes over time. New indices are constantly appearing with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can be a source of misunderstandings.
If one index adds 500 points per day, and another index only gains 20 points, it may appear that the first one has performed better. However, if the first day started at 30,000 points and the next at 300, it can be deduced that, in percentage terms, the gains for the latter were higher.
What are the main stock indices?
Between the major US stock indexes There is the Dow Jones Industrial Average, better known Dow Jones, made up of 30 companies. Similarly, the S&P 500, including 500 of the largest companies on the New York Stock Exchange. Finally comes the Nasdaq 100to associate 100 of the largest non-financial firms.
On the other hand, the most significant indexes of Europe is the Eurostoxx 50, covering the 50 largest companies in the eurozone. In addition, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish stock market.
I continent of Asiathe main stock indices are the Nikkei 225, comprising the 225 largest companies on the Tokyo Stock Exchange. The IS SSE Composite Index, listed as the most prominent in China, consists of the most prominent companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning the Hang Index Seung in Hong Kong and the KOSPI in South Korea.
Talking about it Latin American regionthe IS IPCin which swelling 35 most powerful companies of the Mexican Stock Exchange (BMV). At least a third of them are owned by magnate Carlos Slim.
Another is the bovespa, composed of the 50 most important companies on the São Paulo stock exchange; the Merval from Argentina; the IPSA From Chile; the COLCAP MSCI from Colombia; the IBC de Caracas, made up of 6 companies from Venezuela.
Likewise, there are other types of global stock indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, the MSCI World, including 1,600 companies from 23 developed countries; the MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P World 100made up of the 100 most powerful multinationals in the world.
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