Good session for him Nifty 50which ended on Wednesday, June 26, with promotions of 0.62%until the 23,868.80 points. He Nifty 50 scored the maximum number of 23,889.90 points and a minimum volume of 23,670.45 points. The trading range for the Nifty 50 between its highest and lowest point (maximum-minimum) during this day it stood at the 0.92%.
In the last seven days, the Nifty 50 registers an increase in 1.5%%so that for a year it has still accumulated a rise of 26.85%. and a 12.38% above its minimum price of the current year (21,238.80 points).
A stock index It is an indicator that shows how the price of a set of assets changesfor which you need to have data from different companies or sectors of a part 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 firms with specific requirements 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 do not have confidence, stock values would tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to compare 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. observed carefully 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 agglomerated depending on their geography, sectors, company size or even the type of asset.For example, the US Nasdaq index is made up of the 100 largest companies mostly 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 firm that comprises it. This is obtained by multiplying the daily value of the bond in the corresponding stock market by the total shares that are in the hands of investors.
Companies that appear on the stock market are required 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 involves observing its evolution 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 failures.
If one index adds 500 points in a day, while another only adds 20, it might appear that the first one performed better. However, if the former started the day at 30,000 points and the other at 300, it can be assumed that, in percentage terms, the gains for the latter were considerable.
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 comes the Nasdaq 100which associates 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. Furthermore, the DAX 30the main German index containing the strongest companies on the Frankfurt Stock Exchange; 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 225made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, which can be considered the most notable in China, made up of the most relevant companies on the Shanghai Stock Exchange. The same role played by 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 part of the assets 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.
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.
