Bullish day for him Nifty 50which ended the session on Thursday, June 13 with slight increases in 0.33%until the 23,398.90 points. He Nifty 50 marked the maximum number of 23,481.05 points and a minimum volume of 23,353.90 points. The trading range for the Nifty 50 between its highest and lowest point (maximum-minimum) during this day it stood at the 0.54%.
In relation to the profitability of the last seven days, the Nifty 50 registers an increase of 2.53%%so that in interannual terms it still maintains an increase in 25.57%. and a 10.17% above its minimum valuation of the current year (21,238.80 points).
A stock index is an indicator that measures how the value of a given set of assets evolvesfor which you need to have data from several companies or sectors of a fragment of the market.
These indicators are mainly used by the stock exchanges of different countries around the world and each of them can be integrated by companies with specific characteristics such as having a similar market capitalization or belonging to the same type of business. Likewise, 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. If investors do not have confidence, stock prices would tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to make comparisons 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. carefully investigated 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 our economy there are various indices and They can be grouped based on geographic location, sectors, company size or even asset type.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 being measured, but the main component 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 in circulation in the market.
Firms that are listed on the stock market 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 requires taking care of its evolution over time. Current 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 failures.
If one index gains 500 points in one day, while another only adds 20, it might appear that the first had a better return. But, if the first started the day at 30,000 points and the other at 300, you can see that, in percentage terms, the gains for the second were larger.
Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Likewise, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget the Nasdaq 100which associates 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. On the other hand, the DAX 30, the main German index that contains the strongest 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, which appears as the most solid 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 powerful firms on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of magnate 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.
Also, there are other types of global stock indices such as 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.
