Bearish session for the BSE Sensex 30which ended the session on Monday, June 10 with slight drops in the 0.27%until the 76,490.08 points. He BSE Sensex 30 marked a maximum volume of 77,079.04 points and a minimum of 76,379.73 points. The trading range for the BSE Sensex 30 between its highest and lowest point (maximum-minimum) during this day it stood at the 0.91%.
In reference to the profitability of the last seven days, the BSE Sensex 30 records an increase in 0.03%%so that in year-on-year terms it still maintains an increase in 21.14%. He BSE Sensex 30 is located a 0.27% below its maximum so far this year (76,693.36 points) and a 8.7% above its minimum price of the current year (70,370.55 points).
A stock index It is an indicator that measures the evolution of the price of a set of assetsfor which it collects data from various companies or sectors in a fragment of the market.
These indicators are mainly used by the countries’ stock exchanges and each of them can be integrated by firms with specific characteristics such as having a similar market capitalization or belonging to the same type of industry. Also, 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 a company. If investors lack confidence, stock prices tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to make a comparison between profitability 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
Currently in humanity there are various indices and They can congregate based on their location, sectors, company size or even 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 calculation method, 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.
Companies listed on the stock exchange are required to present a balance of its composition. Said report must be notified every three or six months, as appropriate.
Reading a stock index also means being careful about its changes over time. New indices always start with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can lead to inaccuracies.
If one index gains 500 points in one day, while another only gains 20, it might appear that the first index performed better. However, if the first started the day at 30,000 points and the other at 300, it can be derived that, in percentage terms, the gains for the second were considerable.
Between the main US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, which is made up of 30 companies. Likewise, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally, we must mention the Nasdaq 100which links 100 of the largest non-financial firms.
On the other hand, the most notable indices of Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. Furthermore, the DAX 30, the main German index that contains the most prominent 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 Asiawe have the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, which appears as the most notable in China, made up of the most relevant companies on the Shanghai Stock Exchange. Likewise, it is worth mentioning the Hang Seung Index in Hong Kong and KOSPI in South Korea.
Talking about Latin Americayou have the CPIwhich contains the 35 most outstanding firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by 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.
Finally, 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.
