This year, the markets have experienced constant volatility. (Infobase)

positive session for BSE Sensex 30which closed on Wednesday March 8 with slight increases in the 0.21%until the 60,348.09 dots. He BSE Sensex 30 scored the most 60,402.85 points and a minimum of 59,844.82 points. The trading range for the BSE Sensex 30 between its highest point and its lowest point (maximum-minimum) during this day, it was at the 0.92%.

In the past seven days, the BSE Sensex 30 earn a promotion 2.35%so that last year it still maintains an increase of 9.52%. He BSE Sensex 30 is located 1.58% below its maximum this year (61,319.51 points) and a 2.44% above its minimum valuation for the current year (58,909.35 points).

a stock market index is an indicator that shows how the price of a certain set of assets is changingit therefore collects data from various companies or sectors of a fragment of the market.

These indicators are mainly used by the exchanges of the countries and each of them can be integrated by firms with specific characteristics like having a similar market capitalization or belonging to the same type of industry, furthermore, some indices only consider a handful of stocks to determine their value or others that consider hundreds of stocks.

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 the company. Generally, if investors are not confident, stock values ​​will tend to fall.

They are also working to measure the performance of an asset manager and they allow investors to compare 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. carefully observed how the stock prices of companies tended to rise or fall together, so he created two indices: one containing the 20 largest railway companies (since this was the largest industry in the world). era), as well as 12 shares of other types of companies

Currently, in our economy, there are various indices and They can join a union depending on their geographical location, their sectors, the size of the companies or the type of asset.For example, the American Nasdaq index is made up of the 100 largest companies mainly 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 calculation method, but the main factor is the market capitalization of each company that incorporates it. This is obtained by multiplying the daily value of the share on the corresponding stock market by the total number of shares that are in the hands of the investors.

Listed companies are required to present a balance sheet of its composition. This report must be published every three or six months, as the case may be.

Reading a stock market index also means observing its evolution over time. New 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 increases by 500 points in one day, while another adds only 20, it may seem that the former has performed better. But, if the first started the day at 30,000 points and the other at 300, we can deduce that in terms of percentage, the gains for the second were greater.

Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jones, made up of 30 companies. Likewise, the S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally comes the Nasdaq 100which includes 100 of the largest non-financial companies.

On the other hand, the most important indices of Europe are the Euro Stoxx 50, which covers the 50 largest companies in the euro area. On the other hand, the DAX 30, the main German index containing the most outstanding companies on the Frankfurt Stock Exchange; there FTSE100 the London Stock Exchange; he CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish stock exchange.

In Asiathe main stock market indices are the Nikki 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 strongest in China, made up of the most important companies on the Shanghai Stock Exchange. Also, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

As it concerns Latin Americayou have the IPCwhich contains the 35 Most Outstanding Companies on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of tycoon Carlos Slim.

Another is the Bovespa, composed of the 50 most important companies of the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP Columbia; he IBC of Caracas, made up of 6 companies from Venezuela.

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

Likewise, there is MSCI World, which brings together 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 corporations on the entire planet.

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