S&P 500 and DJIA indices are two of the world’s most followed indices
and are considered as the barometers of U.S. market. These indices have displayed
historic resilience in holistically capturing the movements of the U.S. market.
NSE which has been a pioneer in the introduction of innovative and investor friendly
products is introducing rupee denominated future contracts on S&P 500 and DJIA indices.
This is the first time in the world that futures contracts on S&P 500 index are
being introduced and listed on an exchange outside of their home country, USA.
INDICES TO TRADE ON :
S&P 500 is a free-float capitalization-weighted index of 500 leading companies of
the U.S. economy and is widely regarded as the best single gauge of the U.S. equities
market. Although the S&P 500 focuses on the large cap segment of the market, with
approximately 75% coverage of U.S. equities, it is still widely considered as an
ideal proxy for the total market. S&P 500 is maintained by Standard & Poor’s and
was introduced in 1957.
Dow Jones Industrial Average (DJIA) is a price weighted index first published in
the 1896. DJIA Index includes 30 large and liquid blue chips stocks traded on U.S.
exchanges. The Dow® represents roughly 28% of the float-adjusted market capitalization
of the U.S. stock market. Being composed mainly of blue-chip stocks having a leadership
position in the U.S. market the Dow® doesn’t literally “represents” the entire U.S.
market rather, it is a blue-chip index representing the leading companies in the
industries driving the U.S. stock market. As a result, its performance is highly
correlated with broad-based U.S. indices like S&P 500.