SlideShare a Scribd company logo
Stock Market Indices
Agenda
• What is an index?
• Why do we need an index?
• Global Indices.
• Two major ways how an index is calculated.
• How can you buy or invest in an index?
• Two major Indian stock indices.
• Top constituents of Nifty.
• Sectoral index.
• Nifty sectoral contribution.
• Rebalancing of an index.
What is an index?
An index is a tool used to measure the movements in the
market, track how are the sectors performing and help act as a
benchmark for other agencies users and investors.
How to measure
the performance
of the stock
market and the
Indian economy
Which stock,
industry, sector to
invest in?
How to measure
the performance
of the stocks and
mutual funds you
own?
1884 – Charles
Dow and Edward
Jones - Dow Jones
Transportation
Average
Why?
Global Indices
Index Country Date High level Date Low level Change %
DOW JONES US 24/11/2020 30116 23/3/2020 18213 66%
S&P 500 US 1/12/2020 3678 23/3/2020 2191 68%
NIKKEI 225 JAPAN 2/12/2020 26889 19/3/2020 16358 64%
SHANGHAI CHINA 13/7/2020 3458 19/3/2020 2646 31%
DAX GERMANY 17/2/2020 13795 16/3/2020 8255 67%
FTSE 100 UK 17/1/2020 7689 16/3/2020 4898 57%
HANG SENG HONKONG 20/1/2020 29174 19/3/2020 21139 38%
SENSEX INDIA 25/11/2020 44825 24/3/2020 25638 75%
NIFTY 50 INDIA 25/11/2020 13145 24/3/2020 7511 75%
• Measure the performance of the stock market of the countries globally.
Two major ways of calculating an Index
Price weighted
Index
Gives more
weight to stocks
with higher
prices
Dow jones
Market
Capitalized Index
Gives more
weight to stocks
with larger
market share
Nifty
How to buy or invest in an Index?
Futures and Options
Mutual Funds
An ETF that tracks a particular index.
INDIAN STOCK EXCHANGES
Bombay Stock Exchange
• Sensex
• Top 30 companies
National Stock Exchange
• Nifty
• Top 50 companies
Nifty top constituents by weightage
COMPANY WEIGHT %
HDFC BANK 11.21%
RELIANCE 11.17%
HDFC 7.23%
INFOYSIS 7.21%
ICICI 5.84%
TCSL 5.04%
KOTAK 5%
HUL 3.42%
ITC 3.03%
AXIS 2.67%
Sectoral Index
• The index summarizes the
performance of the stocks grouped by
sectors.
• This allows investors to benchmark the
performance of a particular stock
market sector or industry.
39.28
15.75
12.94
11.16
5.58
3.54
2.46
2.45
2.19
1.99 1.7
0.54
0.41
FINANCIAL SERVICES IT OIL AND GAS
CONSUMER GOODS AUTOMOBILE PHARMA
METALS CONSTRUCTION CEMENT
TELECOM POWER SERVICES
FERTILIZERS AND PESTICIDES
NIFTY SECTOR REPRESENTATION
Nifty sectorial contribution
Sector 1995 2005 2015 2020
Financial
services
18.2% 12.7% 31% 36.5%
IT - 19.2% 15.7% 15.04%
Consume
r goods
17.8% 8% 9.5% 10.2%
Auto
mobile
13.8% 6.4% 9.3% 4.5%
Pharma 2.5% 4.6% 7.5% 2.7%
Construc
tion
4% 1.6% 4.7%
Metals 11.2% 5.9% 3.4% 2.5%
Cement 2.4% 2.5% 2.9% 2.2%
Telecom - 6.7% 2.5% 3.1%
Services 2.45% 1.2% 1%
PHARMA
IT
FINANCIAL
SERVICES
CONSUMER
GOODS
AUTOMOBILES
METALS
CEMENT
Rebalancing of an index
• Rebalancing is the practice of adjusting the weight of securities in an index.
• Reconstitution is the practice of adding or deleting securities based on whether
they are meeting the criteria's or not.
• Hence addition or deletion of securities in indices can lead to significant up or
down movements in the prices.

More Related Content

What's hot

Stock Exchange
Stock ExchangeStock Exchange
Stock Exchange
NEELAM KUSHWAHA
 
OTCEI
OTCEIOTCEI
OTCEI
Muruga vel
 
STOCK EXCHANGE
STOCK EXCHANGE STOCK EXCHANGE
STOCK EXCHANGE
Home
 
National Stock Exchange of India (NSE)
National Stock Exchange of India (NSE)National Stock Exchange of India (NSE)
National Stock Exchange of India (NSE)
Mohit Surana
 
Exchange traded funds
Exchange traded fundsExchange traded funds
Exchange traded funds
Tata Mutual Fund
 
Nse
NseNse
Depository receipts
Depository receiptsDepository receipts
Depository receipts
Shashank Singh
 
Secondary Markets
Secondary MarketsSecondary Markets
Secondary Markets
Aniket Joshi
 
Nse ppt
Nse pptNse ppt
Nse ppt
Tinku Kumar
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
shreyasisen
 
Stock exchange
Stock exchangeStock exchange
Stock exchange
Saravanan Sivamani
 
Calculation of Sensex & Nifty
Calculation of Sensex & NiftyCalculation of Sensex & Nifty
Calculation of Sensex & Nifty
Dinesh VNS
 
Stockmarket ppt
Stockmarket pptStockmarket ppt
Stockmarket ppt
Gjergjmihilli
 
Stock market indices
Stock market indicesStock market indices
Stock market indices
Sakshi Ji
 
What is stock index
What is stock indexWhat is stock index
What is stock index
Alauddin kakar
 
Ppt on otcei (1)
Ppt on otcei (1)Ppt on otcei (1)
Ppt on otcei (1)
Ravi kumar
 
Etf
EtfEtf
Stock Exchange
Stock  ExchangeStock  Exchange
Stock Exchange
Maroof Hussain Sabri
 
National stock exchange of india
National stock exchange of indiaNational stock exchange of india
National stock exchange of india
Shruthi R
 
Mutual fund
Mutual fundMutual fund
Mutual fund
Swarup Dutta
 

What's hot (20)

Stock Exchange
Stock ExchangeStock Exchange
Stock Exchange
 
OTCEI
OTCEIOTCEI
OTCEI
 
STOCK EXCHANGE
STOCK EXCHANGE STOCK EXCHANGE
STOCK EXCHANGE
 
National Stock Exchange of India (NSE)
National Stock Exchange of India (NSE)National Stock Exchange of India (NSE)
National Stock Exchange of India (NSE)
 
Exchange traded funds
Exchange traded fundsExchange traded funds
Exchange traded funds
 
Nse
NseNse
Nse
 
Depository receipts
Depository receiptsDepository receipts
Depository receipts
 
Secondary Markets
Secondary MarketsSecondary Markets
Secondary Markets
 
Nse ppt
Nse pptNse ppt
Nse ppt
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
 
Stock exchange
Stock exchangeStock exchange
Stock exchange
 
Calculation of Sensex & Nifty
Calculation of Sensex & NiftyCalculation of Sensex & Nifty
Calculation of Sensex & Nifty
 
Stockmarket ppt
Stockmarket pptStockmarket ppt
Stockmarket ppt
 
Stock market indices
Stock market indicesStock market indices
Stock market indices
 
What is stock index
What is stock indexWhat is stock index
What is stock index
 
Ppt on otcei (1)
Ppt on otcei (1)Ppt on otcei (1)
Ppt on otcei (1)
 
Etf
EtfEtf
Etf
 
Stock Exchange
Stock  ExchangeStock  Exchange
Stock Exchange
 
National stock exchange of india
National stock exchange of indiaNational stock exchange of india
National stock exchange of india
 
Mutual fund
Mutual fundMutual fund
Mutual fund
 

Similar to Stock market indices

10 Stock market Indices
10 Stock market Indices10 Stock market Indices
10 Stock market Indices
Sonali Subhadarshini
 
INTRODUCTION TO STOCK MARKET
INTRODUCTION TO STOCK MARKETINTRODUCTION TO STOCK MARKET
INTRODUCTION TO STOCK MARKET
Aiswarya P Suresh
 
ANALYSIS OF MARKET INDICES AND COMPONENT STOCKS - PART 2
ANALYSIS OF MARKET INDICES AND COMPONENT STOCKS - PART 2ANALYSIS OF MARKET INDICES AND COMPONENT STOCKS - PART 2
ANALYSIS OF MARKET INDICES AND COMPONENT STOCKS - PART 2
abhipray
 
Fundamental and technical analysis @ kotak mahindra mba project report
Fundamental and technical analysis @ kotak mahindra mba project reportFundamental and technical analysis @ kotak mahindra mba project report
Fundamental and technical analysis @ kotak mahindra mba project report
Babasab Patil
 
About share and stock market india
About share and stock market indiaAbout share and stock market india
About share and stock market india
Dhanashri Academy
 
Delta One Stock Future | Stock Future Tips | Stock Future Nivesh Tips
Delta One Stock Future | Stock Future Tips | Stock Future Nivesh TipsDelta One Stock Future | Stock Future Tips | Stock Future Nivesh Tips
Delta One Stock Future | Stock Future Tips | Stock Future Nivesh Tips
AnkitDubey174
 
Technidex Stock Futures Index - An Introduction
Technidex Stock Futures Index - An IntroductionTechnidex Stock Futures Index - An Introduction
Technidex Stock Futures Index - An Introduction
Navin B. Agrawal
 
Introduction - Technidex Stock Futures Index - April 2016
Introduction - Technidex Stock Futures Index - April 2016Introduction - Technidex Stock Futures Index - April 2016
Introduction - Technidex Stock Futures Index - April 2016
Navin B. Agrawal
 
hem's (stock market).pptx
hem's (stock market).pptxhem's (stock market).pptx
hem's (stock market).pptx
HEMANTHCoc
 
Security Market Indexes
Security Market IndexesSecurity Market Indexes
Security Market Indexes
Apratim Sourav
 
Broad market indices by Akshay Sikarwar
Broad market indices by Akshay SikarwarBroad market indices by Akshay Sikarwar
Broad market indices by Akshay Sikarwar
Akshay Sikarwar
 
What Are Stock Market Index_Indices_.pdf
What Are Stock Market Index_Indices_.pdfWhat Are Stock Market Index_Indices_.pdf
What Are Stock Market Index_Indices_.pdf
ZyloStar
 
Sensex and nifty
Sensex and niftySensex and nifty
Sensex and nifty
vincent konadu
 
Stock market.
Stock market.Stock market.
Stock market.
Shubham Bhutada
 
what is nifty 50.pptx
what is nifty 50.pptxwhat is nifty 50.pptx
what is nifty 50.pptx
SgxNifty3
 
International funds - grab the opportunity
International funds - grab the opportunityInternational funds - grab the opportunity
International funds - grab the opportunity
aditya72
 
Internship in securities in vertex
Internship in securities in vertexInternship in securities in vertex
Internship in securities in vertex
Jithendar Jit
 
Analysis Of Market Indices & Component Stocks
Analysis Of Market Indices & Component StocksAnalysis Of Market Indices & Component Stocks
Analysis Of Market Indices & Component Stocks
abhipray
 
Hets
HetsHets
Stock Market Indices & its fluctuation
Stock Market Indices & its fluctuationStock Market Indices & its fluctuation
Stock Market Indices & its fluctuation
CA Avinash Jaiswal
 

Similar to Stock market indices (20)

10 Stock market Indices
10 Stock market Indices10 Stock market Indices
10 Stock market Indices
 
INTRODUCTION TO STOCK MARKET
INTRODUCTION TO STOCK MARKETINTRODUCTION TO STOCK MARKET
INTRODUCTION TO STOCK MARKET
 
ANALYSIS OF MARKET INDICES AND COMPONENT STOCKS - PART 2
ANALYSIS OF MARKET INDICES AND COMPONENT STOCKS - PART 2ANALYSIS OF MARKET INDICES AND COMPONENT STOCKS - PART 2
ANALYSIS OF MARKET INDICES AND COMPONENT STOCKS - PART 2
 
Fundamental and technical analysis @ kotak mahindra mba project report
Fundamental and technical analysis @ kotak mahindra mba project reportFundamental and technical analysis @ kotak mahindra mba project report
Fundamental and technical analysis @ kotak mahindra mba project report
 
About share and stock market india
About share and stock market indiaAbout share and stock market india
About share and stock market india
 
Delta One Stock Future | Stock Future Tips | Stock Future Nivesh Tips
Delta One Stock Future | Stock Future Tips | Stock Future Nivesh TipsDelta One Stock Future | Stock Future Tips | Stock Future Nivesh Tips
Delta One Stock Future | Stock Future Tips | Stock Future Nivesh Tips
 
Technidex Stock Futures Index - An Introduction
Technidex Stock Futures Index - An IntroductionTechnidex Stock Futures Index - An Introduction
Technidex Stock Futures Index - An Introduction
 
Introduction - Technidex Stock Futures Index - April 2016
Introduction - Technidex Stock Futures Index - April 2016Introduction - Technidex Stock Futures Index - April 2016
Introduction - Technidex Stock Futures Index - April 2016
 
hem's (stock market).pptx
hem's (stock market).pptxhem's (stock market).pptx
hem's (stock market).pptx
 
Security Market Indexes
Security Market IndexesSecurity Market Indexes
Security Market Indexes
 
Broad market indices by Akshay Sikarwar
Broad market indices by Akshay SikarwarBroad market indices by Akshay Sikarwar
Broad market indices by Akshay Sikarwar
 
What Are Stock Market Index_Indices_.pdf
What Are Stock Market Index_Indices_.pdfWhat Are Stock Market Index_Indices_.pdf
What Are Stock Market Index_Indices_.pdf
 
Sensex and nifty
Sensex and niftySensex and nifty
Sensex and nifty
 
Stock market.
Stock market.Stock market.
Stock market.
 
what is nifty 50.pptx
what is nifty 50.pptxwhat is nifty 50.pptx
what is nifty 50.pptx
 
International funds - grab the opportunity
International funds - grab the opportunityInternational funds - grab the opportunity
International funds - grab the opportunity
 
Internship in securities in vertex
Internship in securities in vertexInternship in securities in vertex
Internship in securities in vertex
 
Analysis Of Market Indices & Component Stocks
Analysis Of Market Indices & Component StocksAnalysis Of Market Indices & Component Stocks
Analysis Of Market Indices & Component Stocks
 
Hets
HetsHets
Hets
 
Stock Market Indices & its fluctuation
Stock Market Indices & its fluctuationStock Market Indices & its fluctuation
Stock Market Indices & its fluctuation
 

Recently uploaded

Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
Commonwealth
 
Seven Camp April 2024 Cohort Booklet.pdf
Seven Camp April 2024 Cohort Booklet.pdfSeven Camp April 2024 Cohort Booklet.pdf
Seven Camp April 2024 Cohort Booklet.pdf
FinTech Belgium
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
nimaruinazawa258
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
asukqco
 
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdfMacroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
olaola5673
 
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
vpqasyb
 
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
mukeshomran942
 
What Lessons Can New Investors Learn from Newman Leech’s Success?
What Lessons Can New Investors Learn from Newman Leech’s Success?What Lessons Can New Investors Learn from Newman Leech’s Success?
What Lessons Can New Investors Learn from Newman Leech’s Success?
Newman Leech
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
yeuwffu
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
ResolutionFoundation
 
Chapter 25: Economic Growth Summary from Samuelson and Nordhaus
Chapter 25: Economic Growth Summary from Samuelson and NordhausChapter 25: Economic Growth Summary from Samuelson and Nordhaus
Chapter 25: Economic Growth Summary from Samuelson and Nordhaus
iraangeles4
 
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptxExploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
cosmo-soil
 
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
brunasordi905
 
TechnoXander Confirmation of Payee Product Pack 1.pdf
TechnoXander Confirmation of Payee Product Pack 1.pdfTechnoXander Confirmation of Payee Product Pack 1.pdf
TechnoXander Confirmation of Payee Product Pack 1.pdf
richardwellington119
 
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
Neil Day
 
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
Riadh ASSOUAK
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
FinTech Belgium
 
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
beulahfernandes8
 
How to Use Payment Vouchers in Odoo 18.
How to Use Payment Vouchers in  Odoo 18.How to Use Payment Vouchers in  Odoo 18.
How to Use Payment Vouchers in Odoo 18.
FinShe
 

Recently uploaded (20)

Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
 
Seven Camp April 2024 Cohort Booklet.pdf
Seven Camp April 2024 Cohort Booklet.pdfSeven Camp April 2024 Cohort Booklet.pdf
Seven Camp April 2024 Cohort Booklet.pdf
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
 
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdfMacroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
 
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
 
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
 
What Lessons Can New Investors Learn from Newman Leech’s Success?
What Lessons Can New Investors Learn from Newman Leech’s Success?What Lessons Can New Investors Learn from Newman Leech’s Success?
What Lessons Can New Investors Learn from Newman Leech’s Success?
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
 
Chapter 25: Economic Growth Summary from Samuelson and Nordhaus
Chapter 25: Economic Growth Summary from Samuelson and NordhausChapter 25: Economic Growth Summary from Samuelson and Nordhaus
Chapter 25: Economic Growth Summary from Samuelson and Nordhaus
 
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptxExploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
 
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
 
TechnoXander Confirmation of Payee Product Pack 1.pdf
TechnoXander Confirmation of Payee Product Pack 1.pdfTechnoXander Confirmation of Payee Product Pack 1.pdf
TechnoXander Confirmation of Payee Product Pack 1.pdf
 
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
 
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
 
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
 
How to Use Payment Vouchers in Odoo 18.
How to Use Payment Vouchers in  Odoo 18.How to Use Payment Vouchers in  Odoo 18.
How to Use Payment Vouchers in Odoo 18.
 

Stock market indices

  • 2. Agenda • What is an index? • Why do we need an index? • Global Indices. • Two major ways how an index is calculated. • How can you buy or invest in an index? • Two major Indian stock indices. • Top constituents of Nifty. • Sectoral index. • Nifty sectoral contribution. • Rebalancing of an index.
  • 3. What is an index? An index is a tool used to measure the movements in the market, track how are the sectors performing and help act as a benchmark for other agencies users and investors.
  • 4. How to measure the performance of the stock market and the Indian economy Which stock, industry, sector to invest in? How to measure the performance of the stocks and mutual funds you own? 1884 – Charles Dow and Edward Jones - Dow Jones Transportation Average Why?
  • 5. Global Indices Index Country Date High level Date Low level Change % DOW JONES US 24/11/2020 30116 23/3/2020 18213 66% S&P 500 US 1/12/2020 3678 23/3/2020 2191 68% NIKKEI 225 JAPAN 2/12/2020 26889 19/3/2020 16358 64% SHANGHAI CHINA 13/7/2020 3458 19/3/2020 2646 31% DAX GERMANY 17/2/2020 13795 16/3/2020 8255 67% FTSE 100 UK 17/1/2020 7689 16/3/2020 4898 57% HANG SENG HONKONG 20/1/2020 29174 19/3/2020 21139 38% SENSEX INDIA 25/11/2020 44825 24/3/2020 25638 75% NIFTY 50 INDIA 25/11/2020 13145 24/3/2020 7511 75% • Measure the performance of the stock market of the countries globally.
  • 6. Two major ways of calculating an Index Price weighted Index Gives more weight to stocks with higher prices Dow jones Market Capitalized Index Gives more weight to stocks with larger market share Nifty
  • 7. How to buy or invest in an Index? Futures and Options Mutual Funds An ETF that tracks a particular index.
  • 8. INDIAN STOCK EXCHANGES Bombay Stock Exchange • Sensex • Top 30 companies National Stock Exchange • Nifty • Top 50 companies
  • 9. Nifty top constituents by weightage COMPANY WEIGHT % HDFC BANK 11.21% RELIANCE 11.17% HDFC 7.23% INFOYSIS 7.21% ICICI 5.84% TCSL 5.04% KOTAK 5% HUL 3.42% ITC 3.03% AXIS 2.67%
  • 10. Sectoral Index • The index summarizes the performance of the stocks grouped by sectors. • This allows investors to benchmark the performance of a particular stock market sector or industry. 39.28 15.75 12.94 11.16 5.58 3.54 2.46 2.45 2.19 1.99 1.7 0.54 0.41 FINANCIAL SERVICES IT OIL AND GAS CONSUMER GOODS AUTOMOBILE PHARMA METALS CONSTRUCTION CEMENT TELECOM POWER SERVICES FERTILIZERS AND PESTICIDES NIFTY SECTOR REPRESENTATION
  • 11. Nifty sectorial contribution Sector 1995 2005 2015 2020 Financial services 18.2% 12.7% 31% 36.5% IT - 19.2% 15.7% 15.04% Consume r goods 17.8% 8% 9.5% 10.2% Auto mobile 13.8% 6.4% 9.3% 4.5% Pharma 2.5% 4.6% 7.5% 2.7% Construc tion 4% 1.6% 4.7% Metals 11.2% 5.9% 3.4% 2.5% Cement 2.4% 2.5% 2.9% 2.2% Telecom - 6.7% 2.5% 3.1% Services 2.45% 1.2% 1% PHARMA IT FINANCIAL SERVICES CONSUMER GOODS AUTOMOBILES METALS CEMENT
  • 12. Rebalancing of an index • Rebalancing is the practice of adjusting the weight of securities in an index. • Reconstitution is the practice of adding or deleting securities based on whether they are meeting the criteria's or not. • Hence addition or deletion of securities in indices can lead to significant up or down movements in the prices.