Start of up -day for the Nifty 50which begins the session of Friday, May 2 with slight increases in 0,27%to the 24,400.80 pointsafter the start of the opening session. If we compare the figure with past dates, the Nifty 50 It turns the result of the previous day when it experienced a 0.03%decrease, showing in recent dates a lack of stability in the result.
Taking into account the last week, the Nifty 50 marks a 0.64%increase, so for a year it has still retains a rise in the 8,11%.
A stock market index It is an indicator that shows how the value of a certain asset set changesso that data from various companies or sectors of a market fragment is served.
These indicators are mainly used by the stock exchanges of different countries of the world and Each of them can be integrated by signatures with different specificities such as having a similar stock capitalization or belonging to the same type of industry, in addition, there are some indices that only consider a fist of shares to determine their value or others that consider hundreds of actions.
Stock indices serve as 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 participations of a company. Generally, if investors have no confidence, the values of the shares tend to fall.
They also work 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 wallets.
These types of indicators began to be used at the end of the 19th century after The journalist Charles H. Dow. They would carefully observe how the shares of the companies tended to raise or lower price joints, so it created two indexes: one that contained the 20 most important rail companies (as it was the most important industry of the time), as well as 12 actions of other types of businesses
Today there are various indices and They can be added depending on their location, the sectors, the size of the companies or also the type of assetfor example, the American Nasdaq index is composed of the 100 largest companies largely related to technologies such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (Goog), Tesla (TSLA), NVIDIA (NVDA), PayPal (PyPL), Comcast (CMCSA) (ADBE).
Each stock index has its own way of calculatingbut the main component is the stock market capitalization of each company that integrates it. This is obtained by multiplying the value of the day of the title in the corresponding stock market by the total shares that are in the market.
The companies that appear in the stock exchange are obliged to present a balance of its composition. Said report must be published every three or six months, as the case may be.
Reading a stock market also requires paying attention to your variations over time. The new indexes always begin with a fixed value based on shares prices On its start date, but not everyone follows this method. Therefore, you can induce error.
If an index sees an increase of 500 points in one day, while another only adds 20, it might seem that the former had a better performance. However, if the first began the day at 30,000 points and the other in 300, it can be deduced that, in percentage terms, the profits for the second were more remarkable.
Among the main stock market indices in the American Union is the Dow Jones Industrial Avenge, better known as Dow Jonesof which 30 companies are part. Similarly, the S&P 500which contemplates 500 of the largest companies in the New York Stock Exchange. Finally, comes the Nasdaq 100which unites 100 of the largest non -financial firms.
On the other hand, the most important indices of Europa They are the Eurostoxx 50which covers the 50 most important companies of the Eurozone. On the other hand, the DAX 30the main German index that contains the most outstanding companies in the Frankfurt Stock Exchange; the FTSE 100 of the London Stock Exchange; he CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish Stock Exchange.
In The Asian continentwe have the Nikkei 225composed of the 225 most important companies in the Tokyo Stock Exchange. Also, the SSE Composite Indexwhich appears as the strongest in China, made up of the most relevant companies in the Shanghai Stock Exchange. The same role that play the Hang Seung Index In Hong Kong and the Kospi In South Korea.
Regarding The Latin American regionyou have the IPCwhich contains 35 most influential signatures of the Mexican Stock Exchange (BMV). At least a third of them are part of the heritage of the magnate Carlos Slim.
Another is the Bovespacomposed of the 50 most important companies of the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA of Chile; he MSCI COLCAP of Colombia; he IBC from Caracas, made up of 6 companies in Venezuela.
Finally, there are other types of global stock market rates such as MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Similarly, there is the MSCI Worldwhich includes 1600 companies from 23 developed countries; he MSCI Emerging Marketscomposed of more than 800 companies in developing countries; and the S&P Global 100made up of the 100 most powerful multinational firms on the entire planet.
