You must have seen how stock markets are sensitive to various economic and political elements. Any government policy change or a significant announcement influencing any sector will impact the stock markets. Thus, the news channels and online platforms discuss the stock index denoting how the stock market performs that day.
What is a Stock Index?
A stock index is a measure of performance or a report card of the stock market. A subset of stocks is collected to determine the stock index based on various weighting methods, such as based on market capitalization, stock prices, and more.
Some stock indices may be unweighted as well. The selection of a basket of stocks may be based on similar market capitalization, like in FTSE 100 or a sector in Nasdaq enlisting big technology brands.
Why is Stock Index Important in the Financial World?
The stock index indicates the health of the stock market or a particular industry through which the constituent stocks are chosen. Therefore, the stock index is considered a benchmark guiding investment decisions in the financial landscape.
Investors, stock brokers, financial planners, and advisers rely on the stock index to decide their investment strategies. You can get necessary details like the stock prices and trading volume through the stock index. Therefore, informed decisions for buying, selling, or holding stocks become easy.
Globally Followed Stock Indices
The US is the largest economy, and the stock markets NYSE and Nasdaq combined account for a massive share of 54% in the global stock market. The indices of these stock markets and their other variables, like Nasdaq 100, are most commonly followed by investors globally.
Apart from these,
- The Financial Times Stock Exchange (FTSE) index from the UK,
- Deutscher Aktien Index (DAX) from Germany,
- Dow Jones Industrial Average (DOW),
- Standard & Poor’s 500 (S&P 500),
- Nikkie 225 index from Japan,
- Shanghai index from China,
- Straits Times Index (STI) from Singapore
These are other globally followed indices.
If you are curious about stock indices and wish to learn more about them, I suggest you read the latest article in the TraderMade Blog on Popular Stock Indices.
Gold is currently on everyone's lips again.
The very positive development in recent years has drawn investors' attention.
We will deal with all of these questions in today's article.What is gold and where does its value come from?Gold is a shiny yellow, ore-based raw material that has long played a major role in human history as a popular means of payment and value protection instrument.
Almost half of the gold demand comes from jewelers and jewelry makers.
It is important for investors to know that gold and stocks can only be compared to one another to a very limited extent.
Share-based companies create value and profits and have a positive return expectation of 5 - 10% annually over the long term.
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whereas the Sensex shed 135.09 points or 0.36% to settle at 37,847.65, the broader bang-up softened 0.53% to finish the session at 11,271.30.
Nearly 90% of the constituents of the broader BSE-500 index, that accounts for regarding 94% of the whole capitalization are commerce within the red since the Budget.
Foreign portfolio investors for thirteen straight sessions, commercialism shares price $1.62 billion since Gregorian calendar 5 July, sales within the last 3 sessions have crossed $500 million.
The broader market remains in deep distress with over 1,300 stocks touching 52-week lows once the Budget announcement aggravating the six-quarter pessimistic trend in India’s stock markets.
The sharp and prolonged retardation within the economy and poor company earnings have prompted stock market investment leverage to pare their portfolios.
whereas the mixture quantum of cuts within the last three months is comparatively minor, we have a tendency to expect the pace of cuts to select up throughout the 1Q earnings season.
