How to read a market index??




When you open a Stock Exchange site or watch business channels  pertinent to trading and exchanges, u may come across  a plethora of financing  terms not even heard of. Let us take a close look at one such example.

Am using the NDTV Profit website to expatiate:
 

  First a quick glance at how it looks like:

 




Now focusing on each in detail

1] The Market Dashboard

 


·         What is shown above is the market dash board. It shows the market  points of various stock exchanges in various countries. They include BSE SENSEX and BSE Mid cap(Bse), NSE Nifty from India, NasDaq, S & P-500,Dow Jones from U.S. These are indices and belong to specific exchanges. These indices are published by various Financial Services Companies like Dow Jones,S and P Financial etc. These indices are used to understand the behavior , growth and health of the market.



·         In the table above, the points on the left hand side represents the total points  of the exchange traded. Example: under sensex, the bse stock exchange which excercises this index reached 26850 points and in Nifty it touched 4452. They are actually indices. They are calculated by taking into account the share values of a specific number of companies that are trading in the exchange. BSE takes 30 and NSE takes fifty (hence the name NIFTY). These companies are the most active and reliable companies trading un the exchange.



·         BSE Sensex had a base value of 100 and NIFTY 1000. These values are chosen for specific reasons. Example the base value of SENSEX was set to 100 to ease the calculations. If the value of market capitalization increases by then 10%, then value of sensex also moves by 10% to 110!!



·         What’s inside the bracket shows the net increase or decrease in the market value.



·         The same is the case for other indices like S & P 500, Dow Jones etc. These indices may be used in different stock exchanges.

 

·         

Given above are the prices of gold, silver and crude oil. Gold and silver in ounces. It is generally represented as XAU i.e. value of 1 ounce of gold/ USD.  For silver it is XAG. Crude oil or Brent crude oil ( the name Brent because it was originally produced in Brent oilfield) value in barrels is also an important aspect of the market. Imagine if the crude oil prices drop, the whole country could benefit from lower prices and so in return yield a better market return.


2] Indices watch                                                             

 


The above chart shows the price(value) of other significant indices of BSE other than SENSEX.

 3] Gainers and Losers

 



The table shows the thirty companies whose share values are accounted for SENSEX. The (+/-)  % values shows the net increase or decrease in share prices. Gainers and losers are highlighted using green and red respectively.



4] Trading volumes


·         
The chart shows the value and volume of shares traded. The share market operate in a fixed schedule everyday. Previous days close shows the value of SENSEX at close the previous day. Volume of shares (in 1000’s) and value are also shown. Days range and weeks range are included.·        
 The graphs show the the path of market index for a day( the time is shown below) and for a week.

 


Finally, the number of companies out of thirty who gained and suffered loss.

                                                     

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