What are Global Indices?
Global Indices consist of a list of key stock market indices from around the world, and help us measure the performance of the respective markets they represent. For instance, the S&P 500 index consists of the top 500 listed companies on US stock exchanges, while the Nikkei index tracks the Top 225 companies listed on the Japanese stock exchange.
By tracking global indices, investors can get insights into the overall health of the global economy.
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Frequently Asked Questions
What is a stock market index?
A stock market index serves as an instrument to measure the overall or sectoral performance of the market; the index represents the performance of a group of stocks within the market.
A benchmark index such as Nifty represents the overall market, while a sectoral index like Bank Nifty represents only a specific sector - banking.
Why are global indices important?
Tracking global indices can provide investors with invaluable insights about the health of the global economy; helping them make informed investing decisions.
How are global indices calculated?
A particular global index, just like any other stock market index, represents a specific group of stocks. The stocks are then converted to an index using a specific methodology and weighing scheme.