Global Indices

Explore major global indices like the GIFT Nifty, S&P 500, Dow Jones, Nasdaq, Russel 1000, and more to get a real-time view of how markets are performing across the world. This INDmoney page helps you track global stock market trends with live updates, region-wise index data, and clear insights. Learn how global  stock market indices work, and how they can help you build a more informed and diversified investment strategy.

What are Global Stock Market Indices?

Global market indices, also known as world stock market indices, are benchmarks that measure the performance of a specific segment of the global stock market. Think of them as a snapshot of a country's, region's, or sector's stock market health. 

Each Global index is a curated collection of stocks, and its movement reflects the collective performance of those stocks. 

Why You Should Follow Global Indices

Imagine you are trying to understand global fashion trends. If you only looked at what people are wearing in Mumbai or Delhi, you would get a very limited view. Fashion in Paris, New York, London, Tokyo, and Milan might be completely different, influenced by their own cultures, climates, seasons, and tastes. So, in order to truly understand global fashion trends, you’d need to look at a mix of styles from all these places.

Global indices work the same way for finance, tracking the performance of stock markets across various countries. Indices such as the US’ S&P 500, Japan’s Nikkei, and South Korea’s KOSPI each reflect key segments of their respective markets. Just as a global fashion report captures shifting trends across regions, these global indices offer investors insight into the direction of the world economy.

By following the global market indices today, investors can gain insight into the direction of the world economy. They serve as vital tools for tracking market sentiment, emerging trends, and overall economic health.

How Do Global Market Indices Work?

Global stock market indices are calculated by combining the prices of selected stocks into a single number. This calculation can be done in several ways, with the most common being:

• Market Capitalization-Weighted: In this method, companies with a larger market capitalization (stock price multiplied by the number of outstanding shares) have a greater impact on the index's value. The S&P 500 and India's Nifty 50 are examples of this.
• Price-Weighted: Here, stocks with higher prices have a greater influence on the index, regardless of the company's size. The Dow Jones Industrial Average (DJIA) is a well-known price-weighted index.
• Equal-Weighted: As the name suggests, all stocks in the index have the same weight, regardless of their price or market capitalization.

The value of these indices fluctuates throughout the trading day, providing a Global Indices Live look at the market's performance.

Why Should You Care About Global Indices?

Investing in or tracking global market indices offers several advantages for every investor:

• Superior Portfolio Diversification: Spreading your investments across different countries and regions reduces your risk. A downturn in one market may be offset by gains in another, creating a more stable portfolio.
• Access to Growth Opportunities: Some of the world's fastest-growing companies and economies are outside of India. Global indices provide a gateway to tap into this growth potential.
• Hedge Against Domestic Volatility: When the Indian market is volatile, having investments in international markets can help balance your portfolio.
• Currency Diversification: Investing in global indices means you are also investing in foreign currencies. A stronger US dollar, for example, can boost the returns on your US investments.

Major Global Indices to Watch

Here are some of the most influential global market indices that every investor should know:

• GIFT Nifty: Reflects the performance of the Nifty 50 futures traded on the NSE International Exchange (NSE IX) in GIFT City.
• S&P 500: Tracks 500 of the largest US stocks and is a broad measure of the U.S. market.
• Dow Jones Industrial Average (DJIA): Comprises 30 large, publicly-owned companies in the United States.
• Nasdaq Composite (COMP): Represents all the stocks listed on the Nasdaq stock exchange, with a high concentration of technology companies.
• Russel 1000: Represents the top 1,000 U.S. companies by market cap and reflects the performance of large- and mid-cap US stocks.

How To invest in global indices from India?

You can invest in global indices from India by opening a US stock account on INDmoney and completing a quick digital KYC. Fund your account under the RBI’s Liberalised Remittance Scheme (LRS). Once funded, you can invest in index-tracking ETFs. You can also start small with a SIP of just ₹500.