Which of the following is a global stock market index?
- Sensex
- FTSE100
- OTCEI index
- Nifty
Answer: b. FTSE100
Answer Explanation
Among the options provided, the correct answer is (b) FTSE100. The FTSE100 is a prominent global stock market index and plays a crucial role in financial markets. It measures the overall performance of a collection of stocks from various companies listed on different stock exchanges around the world.
FTSE100 is a market capitalization-weighted index of the 100 largest companies listed on the London Stock Exchange (LSE) in the United Kingdom, also known as the Financial Times Stock Exchange 100 Index. In 1984, FTSE Russell, a subsidiary of the London Stock Exchange Group, established it and operates it.
As a measure of the health and performance of the British economy, the FTSE100 serves as a benchmark for the UK stock market. The index includes companies from various sectors, including finance, energy, healthcare, consumer goods, and technology, among others. As a result, it provides a comprehensive overview of the UK’s economic landscape.
Why the other options are not correct
a. Sensex
The Sensex, also known as the S&P BSE Sensex, is the primary stock market index of the Bombay Stock Exchange (BSE) in India. In spite of the fact that the Sensex is a significant index for the Indian stock market, it is not a global index. It consists of 30 well-established and financially sound companies representing various sectors of the Indian economy. Unlike international stock markets and companies from other countries, the index is strictly focused on Indian companies.
c. OTCEI index
The Over-The-Counter Exchange of India (OTCEI) Index is an index that represents the performance of companies listed on the Over-The-Counter Exchange of India. OTCEI was established in 1990 to provide a platform for small and medium-sized enterprises to raise capital through the issue of securities. The OTCEI Index is not a global stock market index, despite serving a crucial role in the Indian financial market. Stocks listed on other global exchanges are not considered, and its scope is limited to companies listed on the OTCEI.
d. NIFTY
Another major index in India is the Nifty 50, also known as the Nifty Index. In the same vein as the Sensex, the Nifty is an important benchmark for the Indian market, but it is not a global index.
It represents the performance of 50 large-cap companies listed on the NSE, which are primarily Indian companies. Because of this, it does not provide insights into international market trends or global listings.
Conclusion
Therefore, the FTSE100 is the best global stock market index among those given. As a benchmark for the UK stock market, this index includes 100 of the largest companies listed on the London Stock Exchange (LSE). Sensex, OTCEI Index, and Nifty, on the other hand, are specific to the Indian stock market and do not have a global perspective.
To measure the performance of the UK’s major companies and its economy, investors and analysts closely monitor the FTSE100. The FTSE100 offers valuable insights into the global financial landscape and the overall health of the British market, since it covers a wide range of sectors.
Nifty was established in which year?
I am Bibisha Shiwakoti a final year BBS student from Janapremi College. I have completed my higher secondary education at Kalinchowk Secondary School.
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