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Suryadev Bandari, Research Analyst, SEBI Regd. No: INH200004693


Brief introduction about World's Most Important Stock Market Indices


2. S&P 500 INDEX


4. NIKKEI 225




8. CAC 40



THE DOW JONES INDUSTRIAL AVERAGE also called DJIA, THE Industrial Average, the Dow Jones, the Dow Jones Industrial, ^DJI, the Dow 30 or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. The industrial average was first calculated on May 26, 1896. It is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market.

S&P 500 INDEX- The Standard & Poor's 500, often abbreviated as the S&P 500, or just "the S&P",is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. The S&P 500 index components and their weightings are determined by S&P Dow Jones Indices. It differs from other U.S. stock market indices, such as the Dow Jones Industrial Average or the Nasdaq Composite index, because of its diverse constituency and weighting methodology. It is one of the most commonly followed equity indices, and many consider it one of the best representations of the U.S. stock market, and a bellwether for the U.S. economy.

FTSE 100 INDEX- The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalisation. It is seen as a gauge of prosperity for businesses regulated by UK company law. The index is maintained by the FTSE Group, a subsidiary of the London Stock Exchange Group.

NIKKEI 225- more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average,(/ˈnɪkeɪ/, /ˈniːkeɪ/, or /nɪˈkeɪ/), is a stock market index for the Tokyo Stock Exchange (TSE). It includes the top 225 blue-chip companies listed on the Tokyo Stock Exchange. Another major index for the Tokyo Stock Exchange is the Topix.

DAX PERFORMANCE INDEX- The DAX (German stock index)) is a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. Prices are taken from the Xetra trading venue. According to Deutsche Börse, the operator of Xetra, DAX measures the performance of the Prime Standard’s 30 largest German companies in terms of order book volume and market capitalization.

HANGSENG INDEX(HSI) The Hang Seng Index is a freefloat-adjusted market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong. These 50 constituent companies represent about 58% of the capitalisation of the Hong Kong Stock Exchange.

NASDAQ COMPOSITE- The NASDAQ Composite (^IXIC) is a stock market index of the common stocks and similar securities (e.g. ADRs, tracking stocks, limited partnership interests) listed on the NASDAQ stock market. Along with the Dow Jones Average and S&P 500 it is one of the three most-followed indices in US stock markets. The composition of the NASDAQ Composite is heavily weighted towards information technology companies.

CAC 40 The CAC 40 (Cotation Assistée en Continu) is a benchmark French stock market index. The index represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the Euronext Paris (formerly the Paris Bourse).

SENSEX- The S&P BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index), also-called the BSE 30 or simply the SENSEX, is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange. The 30 component companies which are some of the largest and most actively traded stocks, are representative of various industrial sectors of the Indian economy. The term Sensex was coined by Deepak Mohoni, a stock market analyst. It is a portmanteau of the words Sensitive and Index.

NIFTY 50- The NIFTY 50 index is National Stock Exchange of India's benchmark stock market index for Indian equity market. Nifty is owned and managed by India Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited.

SGX NIFTY- SGX Nifty, also known as Singapore Nifty is a derivative product of Indian Nifty index officially traded in Singapore stock exchange. The movement of SGX Nifty is highly correlated to Indian Nifty index. Its important to understand that not all stocks that Nifty comprises of is traded in SGX. Importance of SGX Nifty Nifty Contracts on SGX is traded for 16 hours as compared to 6~ hours trading in NSE. This gives international investors flexibility to trade without any timezone constraints. Also, Singapore being a very flexible market offers a good deal visibility for Indian stocks through SGX Nifty. Investors who are unable to access Indian markets, but who want to take an exposure in Indian market trade in SGX Nifty. For domestic investors at India, SGX Nifty gives a very good indication on where the market will open as trading in SGX starts around 3 hours before NSE. The developments that take place and have a bearing on the Indian markets get factored into SGX nifty, even when Indian markets remain closed, give a sense of what is to expect when trade resumes in Indian market.

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