Negative opening of the day for the BSE Sensex 30which begins the session on Wednesday, June 5 with slight drops in the 0.25%until the 71,900.21 points, after the start of the opening session. Comparing this data with that of previous dates, the BSE Sensex 30 adds two consecutive negative days.
In relation to the last week, the BSE Sensex 30 marks a decrease in 3.49%%; but since a year ago it still has an increase in 14.95%. He BSE Sensex 30 is located a 5.97% below its maximum of this year (76,468.78 points) and a 2.17% above its minimum valuation so far this year (70,370.55 points).
A stock index It is an indicator that is used to know the evolution of the price of a set of assets.for which it takes data from several companies or sectors of a fragment of the market.
These indicators are mainly used by the countries’ stock exchanges and each of them can be integrated by companies with different specificities such as having a similar market capitalization or belonging to the same type of industry. In addition, there are some indices that only consider a handful of shares to determine their value or others that consider hundreds of shares.
Stock market indices serve as indicator of stock market confidence, business confidence, health of the national and global economy, and stock investment performance and shares of an entity. Generally, if investors lack confidence, stock values tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to analyze comparisons between return and risk; measure the opportunities of a financial asset or create portfolios.
This type of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. looked closely at how company shares tended to rise or fall in price together, so he created two indices: one that contained the 20 most important railway companies (as it was the most important industry at the time), as well as 12 shares of other types of businesses
Nowadays there are various indices and They can be grouped based on geography, sectors, company size or also the type of asset.For example, the US Nasdaq index is made up of the 100 largest companies largely 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).
Each stock index has its own way of calculating, but the main factor is the market capitalization of each company that comprises it. This is obtained by multiplying the day’s value of the security in the corresponding stock market by the total number of shares that are on the market.
Firms that are on the stock market are obliged to present a balance of its composition. This report must be submitted every three or six months, as the case may be.
Reading a stock index also requires being aware of its changes over time. New indices always open with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can be misleading.
If one index increases 500 points in one day, while another only adds 20, it might appear that the first one performed better. However, if the first started the day at 30,000 points and the other at 300, it can be assumed that, in percentage terms, the gains for the second were larger.
Between the main US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Also, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must mention the Nasdaq 100which brings together 100 of the largest non-financial firms.
On the other hand, the most important indices of Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. On the other hand, the DAX 30, the main German index that contains the most outstanding companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he CAC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.
In the asian continentwe have the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, is seen as the main one in China, made up of the most prominent companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and KOSPI in South Korea.
Talking about the latin american regionyou have the CPIwhich contains the 35 most prestigious firms on the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of tycoon Carlos Slim.
Another is the Bovespa, made up of the 50 most important companies on the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP from Colombia; he IBC of 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, there is the MSCI World, which includes 1,600 companies from 23 developed countries; he MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P Global 100made up of the 100 most powerful multinational firms on the entire planet.
