This is the 617th most frequent Spanish word.
indica
"Indica" means "indicates" or "points out."
Here, 'indica' is used as a verb meaning 'shows' or 'points out' something, specifically the location of the treasure.
El mapa indica la ubicación del tesoro.
The map indicates the location of the treasure.
In this sentence, 'indica' expresses what the thermometer demonstrates or reflects about the temperature.
El termómetro indica que hace frío.
The thermometer shows that it is cold.
Here, 'indica' conveys the action of emphasizing or highlighting a point by the teacher.