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Nifty 50: The Indian stock market closed lower on December 12

This year, the markets have recorded constant volatility.  (Infobae)
This year, the markets have recorded constant volatility. (Infobae)

Unwanted session for Nice 50which ended the day on Tuesday, December 12, with a decrease of 0.43%till 20,906.40 points. He Nice 50 marked at most 21,037.90 points and a minimum volume of 20,867.15 points. The trading area for Nice 50 between its highest and lowest point (maximum-minimum) during this day it stood 0.81%.

If we consider data from the last seven days, Nice 50 records an increase in 0.25% and for a year it still maintains an increase in 12.14%. He Nice 50 if one is located 0.43% below its maximum this year (20,997.10 points) and a 23.38% above its minimum price so far this year (16,945.05 points).

A stock index It is an indicator that measures how the price of a given set of assets developsfor which it takes data from different companies or sectors of a fragment of the market.

These indicators are mainly used by the stock exchanges in each country and each of them can be integrated by companies with specific requirements such as having a similar market value or belonging to the same type of industry. In addition, there are some indices that take into account only a handful of stocks to determine their value or others that take into account hundreds of stocks.

Stock market index serves as indicator of stock market confidence, business confidence, the health of the national and global economy and stock investment performance and shares in an entity. If investors lack confidence, stock prices tend to fall.

They also work for measuring performance of an asset manager and allow investors to analyze comparisons between return and risk; measure the possibilities of a financial asset or create portfolios.

This type of indicators began to be used in the late 19th century after journalist Charles H. Dow. carefully studied how company stocks tended to rise or fall together, so he created two indexes: one containing the 20 main railroad companies (since that was the most important industry at the time), as well as 12 stocks of other types of companies

Currently there are various indices and They can be agglomerated depending on their location, sectors, the size of the companies or also the type of asset.For example, the US Nasdaq index consists 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 way of calculation, but the main factor is the market value of each company that includes it. This is obtained by multiplying today’s value of the security on the corresponding stock market by the total number of shares in circulation on the market.

Companies that appear on the stock market are obliged to present a balance sheet of its composition. This report shall be published every three or six months, as appropriate.

Reading a stock index also requires paying attention to its development over time. Current indices are always displayed with a fixed value based on security prices 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 may appear that the first index did better. However, if the first started the day at 30,000 points and the second at 300, it can be inferred that the gains for the second were percentage-wise greater.

Between major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, which consists of 30 companies. That too S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally there appears Nasdaq 100which associates 100 of the largest non-financial companies.

On the other hand, the most notable indexes are for Europe is Eurostoxx 50, which covers the 50 most important companies in the eurozone. On the other hand DAX 30, the main German index containing the most outstanding companies on the Frankfurt Stock Exchange; that FTSE 100 from the London Stock Exchange; he CAC 40 from the stock exchange in Paris; and IBEX 35from the Spanish stock market.

IN the Asian continentare the most important stock indices Nikkei 225, which consists of the 225 largest companies on the Tokyo Stock Exchange. There is also SSE Composite Index, emerging as the most notable in China, consisting of the most relevant companies on the Shanghai Stock Exchange. The same role is played Hang Seung Index in Hong Kong and KOSPI in South Korea.

Talking about the Latin American regionyou have IPCwhich contains 35 most outstanding companies on the Mexican Stock Exchange (BMV). At least a third of them belong to tycoon Carlos Slim’s capital.

Another is Bovespa, consisting 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 of Caracas, consisting of 6 companies from Venezuela.

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

Likewise there is MSCI world, which includes 1,600 companies from 23 developed countries; he MSCI Emerging Markets, which consists of more than 800 companies from developing countries; and S&P Global 100which consists of the 100 most powerful multinational companies on the entire planet.

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