Stock Market Index is the method of showing the Overall performance of all the companies that are listed in Stock Market with a Single number. This number is only called as Stock Market Index. This Stock Market Index Number is used by all the Investors and Traders to understand the Present overall performance of the Market and to forecast Future of the stock Market depending on the past values of the Stock Market Index.
DOW is the Stock Market Index of United States Of America
SENSEX is the stock market Index of India’s Bombay Stock Exchange.For example if the Current Value of DOW is 12134.09(+273.02)(2.25%) Means DOW value is increased 273 points from the yesterday’s value of 11861.07 and the overall percentage of market is increased by 2.25%. It doesn’t mean that all the companies in the Market has increased to 2.25% but most of the Companies Profited around that value of percentage. It indicates that overall market is good.
For example Current Value of DOW is 12134.09(+24.27)(0.2%) Means DOW value is increased 24 points from the yesterday’s value and the overall percentage of market is increased by 0.2%. It indicates that overall market is Volatile.
For example Current Value of DOW 12134.09(-273.02)(-2.25%) Means DOW value is decreased 273 points from the yesterday’s value and the overall percentage of market is reduced by 2.25%. It indicates that overall market is down by 2.25%.This Example is common for all the indexes i.e for SENSEX as well as NASDAQ. Just replacing the Index you want for with DOW. Dont get confused.
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