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

bad day for BSE Sensex 30which inaugurates the day of Friday March 10 with notable drops in the 1.14%until the 59,122.36 points, after the start of the opening session. Compared to previous days, the BSE Sensex 30 cumulates two consecutive dates in negative numbers.

Compared to last week, the BSE Sensex 30 gets a promotion from 0.36%Therefore, year on year, it always maintains an increase of 11.88%. He BSE Sensex 30 is located at 3.58% below its maximum this year (61,319.51 points) and a 0.36% above its minimum valuation for the current year (58,909.35 points).

a stock market index is an indicator that measures the change in value of a given set of assetsTherefore, it uses data from different companies or sectors in 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 companies with specific needs like having a similar market capitalization or belonging to the same type of company, moreover, there are some indices that 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 stock market, business confidence, health of national and global economy and stock investment performance and shares of an entity. If investors lack confidence, stock prices will tend to fall.

They are also working 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.

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

Today in humanity there are various indices and they can group together based on location, industries, company size, or even asset classFor 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 value of the security on the corresponding stock market by the total number of shares that are on the market.

Companies that are in the bag are obliged to present a balance sheet of its composition. This report must be notified every three or six months, as the case may be.

Reading a stock market index also requires examining its evolution over time. New indices always start with 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 adds 500 points in one day, while another only adds 20, it may appear that the former has outperformed. But, if the first started the day at 30,000 points, and the other at 300, we can conclude that in percentage terms, the gains of the second were higher.

Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jones, made up of 30 companies. Also 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 the asian continentthe 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 most notable in China, consisting 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 consolidated companies on the Mexican Stock Exchange (BMV). At least a third of them are part of the estate 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.

Finally, 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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