Major stock market indices around the world

Across the globe, stock market indices are the measurement yardstick that offer a snapshot of how financial markets are performing in respective countries. These indices track select group of companies, thereby helping investors gauge market trends, market performance, and the economic growth and development of various countries. In fact, indices are like the health record of countries' economic performance. Here's a list of some of the most important global indices.

United States

1. Dow Jones Industrial Average (DJIA) – Simply called Dow Jones, this index tracks 30 large-cap stocks, publicly-owned bluechip companies in the U.S., representing major industries. This is often used as a barometer of the U.S. economy (price-weighted index)
2. S&P 500 – Comprises 500 large-cap U.S. companies in terms of market capitalisation. It is widely used as a benchmark for measuring equity performance of the U.S.
3. NASDAQ Composite – Includes more than 2,500 tech-heavy stocks (growth-oriented companies) listed on the NASDAQ exchange (market-capitalisation-weighted index)
4. Russell 2000 – Tracks 2,000 small-cap companies in the U.S. Russell gives insight into the small-cap stocks' performance and is widely used for gauging performance of small players in the U.S. economy (market-capitalisation-weighted index)
5. NYSE Composite – This index includes all stocks listed on the New York Stock Exchange and reflects the overall performance of NYSE market, instead of reflecting the select large companies in the U.S. (market-capitalisation-weighted index)

Europe

1. FTSE 100 (U.K.) – Financial Times Stock Exchange 100 – This index is also called Footsie. The index tracks the 100 large-cap companies, most liquid stocks, listed on the London Stock Exchange (market-capitalisation-weighted index)
2. DAX 30 (Deutscher Aktienindex - German Stock Index) – This index represents 30 large-cap blue-chip companies, traded on the Frankfurt Stock Exchange, in Germany and represents the health of German economy
3. CAC 40 (France) – Cotation Assistée en Continu (Continuous Assisted Trading or Continuous Assisted Quotation) - Tracks 40 leading large-cap French companies on the Euronext Paris exchange. (price-weighted index)
4. Euro Stoxx 50 – This index tracks 50 large-cap and most liquid bluechip companies across the Eurozone, that is widely used as a benchmark for measuring the performance of Eurozone equity

Asia

1. Nikkei 225 (Japan) – Comprises 225 leading large-cap Japanese companies listed on the Tokyo Stock Exchange (price-weighted index)
2. SSE Composite Index (China) – Shanghai Stock Exchange (SSE) - Represents all stocks traded on the Shanghai Stock Exchange and reflects China's A-share market (market-capitalisation-weighted index)
3. Hang Seng Index (Hong Kong) – Tracks 50 of the largest and most liquid companies listed in Hong Kong Stock Exchange. Considered a barometer of Hong Kong's market and economy (market-capitalisation-weighted index)
4. Sensex 30/BSE 30 (India) – Tracks the 30 large-cap and most actively traded liquid stocks on the Bombay Stock Exchange.
5. Nifty 50 (India) – Tracks the 50 large-cap and most actively traded liquid stocks on the National Stock Exchange. It is widely used as benchmark in India and measures India's economic health

Other key market indices

1. TSX Composite (Canada) – Toronto Stock Exchange (TSX) – Tracks the performance of the largest companies on the Toronto Stock Exchange
2. ASX 200 (Australia) – Australian Securities Exchange (ASX) – Represents the top 200 companies by market cap listed on the Australian Securities Exchange
3. KOSPI (South Korea) – Korea Composite Stock Price Index - Tracks all common stocks on the Korea Exchange. Considered a benchmark for South Korean equities (market-capitalisation-weighted index)
4. Ibovespa (Brazil) – Bovespa Index – B3 – Tracks the most traded, most liquid, large-cap stocks listed on the Sao Paulo Stock Exchange, Brazil. It is considered the benchmark for gauging Brazilian market and Brazilian economy. It's also known as B3 because – the name of the stock exchange is Brasil, Bolsa, Balcão. Brasil (Brazil) Bolsa (stock exchange) and Balcão (over-the-counter market) - (market-capitalisation-weighted index)
5. Straits Times Index (STI) – This index tracks the largest and most liquid stocks listed on the Singapore Stock Exchange (SGX). It serves as a benchmark for Singapore's equity market (market-capitalisation-weighted index)

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