India index opens this August 3



Start of the day without major changes for the nifty 50which opens on Wednesday, August 3 with a variation of the 0.02%until the 17,349.25 points, after opening. In relation to the variations of this day with respect to past dates, the nifty 50 adds six successive sessions on the rise.

If we consider the data of the last week, the nifty 50 notes an increase in 4.25%so in year-on-year terms it still accumulates a rise of 10.06%. The nifty 50 stands a 5.24% below its maximum this year (18,308.10 points) and a 13.44% above its minimum valuation so far this year (15,293.50 points).

What is a stock index and what is it for?

a stock index is an indicator that measures how the price of a certain set of assets evolvesfor 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 markets of different countries of the world and each of them can be integrated by signatures with certain characteristics such as having a similar market capitalization or belonging to the same industry, likewise, there are some indices that only take into account a handful of shares to determine their value or others that consider hundreds of shares.

Stock market 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 company shares. Generally, if investors lack confidence, share prices will tend to fall.

They also work to measure the performance of an asset manager and they allow investors to be able to compare 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 journalist Charles H. Dow. He looked closely at how company stocks tended to go up or down together in price, so he created two indices: one containing the top 20 railroad companies (since it was the biggest industry at the time), as well as 12 actions of other types of businesses

Currently there are various indices and they can be grouped according to their location, sectors, company size or also the type of assetFor 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).

How is a stock index measured?

Each stock index has its own way of being measured, but the main component is the market capitalization of each firm that integrates it. This is obtained by multiplying the value of the day of the action in the corresponding stock market by the total number of shares that are in the hands of investors.

Companies listed on the stock exchange are required to present a balance of its composition. Said report must come to light every three or six months, as appropriate.

Reading a stock index also requires paying attention to its changes over time. New indices always start with a fixed value based on the prices of the securities 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 index outperformed. But, 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 more remarkable.

What are the main stock indices?

Between the main stock indices in the American Union There is the Dow Jones Industrial Average, better known as dow jones, which is made up of 30 companies. Similarly, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally comes the Nasdaq 100which links 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 eurozone. In addition, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; the FTSE100 from the London Stock Exchange; the ACC 40 of the Paris Stock Exchange; and the IBEX 35of 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 is listed as the most representative in China, made up of the most prominent companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and the KOSPI in South Korea.

Talking about Latin Americayou have the CPIwhich contains at 35 most powerful firms of the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of tycoon Carlos Slim.

Another is the Bovespa, made up of the 50 most important companies on the São Paulo stock exchange; the merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC of 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 the MSCI World, which includes 1,600 companies from 23 developed countries; the 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 planet.

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