Index Name | Last | Change (%) | High | Low | Open | Prev. Close |
---|---|---|---|---|---|---|
EUROPEAN MARKETS | ||||||
CAC 40 08 Nov, 21:04 | 7,340.27 | -86.49 (-1.16%) | 7,440.95 | 7,330.21 | 7,440.12 | 7,425.60 |
FTSE 100 08 Nov, 21:19 | 8,071.42 | -70.02 (-0.86%) | 8,158.64 | 8,061.31 | 8,154.56 | 8,140.70 |
DAX PERFORMANCE-INDEX 08 Nov, 19:24 | 19,218.27 | -141.33 (-0.73%) | 19,415.95 | 19,146.53 | 19,406.95 | 19,362.52 |
A market index, within the context of stock markets, serves as a barometer that reflects the performance of a select group of top-performing stocks, simulating a hypothetical portfolio. World indices empower investors by facilitating market comparisons, aiding them in determining potential investment opportunities in various stock markets.
Global indices, a subset of market indices, specifically aid in evaluating and comparing market performances across diverse regions worldwide. For instance, the SENSEX stands as a testament to the stock market performance in India.
Global indices monitor equity performance in share markets spanning various regions. The MSCI World Index captures the performance of mid-cap and large equities across 23 developed nations, covering approximately 85% of free adjusted market capitalisation. Other notable global stock market indices include the Nifty, CAC, DAX, FTSE, and Sensex.
In essence, these indices serve as a lens to assess the vitality and vulnerabilities of the global markets. They derive their values from a sample of highly liquid and valuable stocks from listed entities. As these sample stocks fluctuate, they influence the trajectory of global indices.
When global indices trend upwards, it's generally indicative of a buoyant world stock market, and a downward trend often points to prevailing global market vulnerabilities.
The computation of global indices stems from methodologies ratified by the index committees of respective world share markets. Predominantly, the calculations commence with price-weighted indices and transition towards market cap weighting. Such an approach ensures that fluctuations in smaller stocks don't disproportionately impact the index. While multiple methodologies can be deployed, market cap weighting and free float weighting are most prevalent.
The Indian stock market is swayed by a myriad of factors encompassing both macro and microeconomic variables. The integration of the Indian market with global share markets post-globalization has heightened its sensitivity to global market movements. Such connectivity implies that actions taken by foreign portfolio investors based on global indices can significantly influence the Indian market.
For instance, significant downturns in indices like the NASDAQ can trigger ripple effects across global markets, impacting foreign capital inflows into India and, consequently, the Indian currency and index. Sectors like IT in India, with substantial reliance on US investments, exemplify the interdependence between global markets and Indian indices.
Various indices are structured based on the nature of stocks incorporated within them. Here are some prominent ones: