This year the markets have registered a constant volatility. (Infobae)

Day without changes for the BSE Sensex 30which begins the session on Thursday, April 27 with a variation of the 0.08%until the 60,348.84 points, after the start of the opening session. In relation to previous days, the BSE Sensex 30 Add up six consecutive earnings dates.

In the last seven days, the BSE Sensex 30 accumulate a promotion 1.2%so that in year-on-year terms it still maintains a rise in 5.51%. He BSE Sensex 30 a 1.58% below its maximum this year (61,319.51 points) and a 4.91% above its minimum price so far this year (57,527.10 points).

a stock index It is an indicator that shows how the value of a set of assets changesso it collects data from different companies or sectors of a fragment of the market.

These indicators are used mainly by the stock markets of each country 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 business, there are also some indices that only consider a handful of shares to determine their value or others that consider hundreds of shares.

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 stock investments and shares of an entity. Generally, if investors are not confident, stock prices will 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 portfolios.

These types of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. To see carefully how the shares of the companies tended to rise or fall together in price, so he created two indices: one that contained the 20 most important railway companies (since it was the most important industry at the time), as well as 12 shares of other types of businesses

Today in our economy there are various indices and They can unionize based on their geography, sectors, company size or even the type of assetFor example, the US Nasdaq index is made up of the 100 largest largely technology-related companies 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 integrates it. This is obtained by multiplying the daily value of the share in the corresponding stock market by the total number of shares that are in circulation in the market.

Companies listed on the stock market are required to present a balance of its composition. Said report must be disclosed every three or six months, as the case may be.

Reading a stock index also requires noticing its changes over time. Current indices always open at a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can be misleading.

If one index powers up by 500 points in one day, while another only gets 20, it might appear that the former outperformed. But, if the first started the day at 30,000 points and the other at 300, it can be deduced that, in percentage terms, the gains for the second were more important.

Between the major US stock indices is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Also, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally comes 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 largest companies in the euro area. Also, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he ACC 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. There is also the SSE Composite Index, which can be considered the most solid in China, made up of the most relevant companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

Talking about Latin Americayou have the CPIwhich contains the 35 most influential 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 de Caracas, made up of 6 companies from Venezuela.

Similarly, there are other types of global stock market indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.

Similarly, there is 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.

California18

Welcome to California18, your number one source for Breaking News from the World. We’re dedicated to giving you the very best of News.

Leave a Reply