what is the meaning of the sensex and how it calculated?

by admin on December 10, 2010

what is the meaning of the sensex and how it calculated?, 6.5 out of 10 based on 11 ratings
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i know some things about the sensex but don’t know how it calculated
means they said sensex get crossed the 15000 marks
but how do you know that and how it is calculated ?



+Admin


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geeyen December 9, 2010 at 11:37 pm

visit moneycontrol.com and you will get the answer

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R@m December 9, 2010 at 11:37 pm

The Index was initially calculated based on the “Full Market Capitalization” methodology but was shifted to the free-float methodology with effect from September 1, 2003. The “Free-float Market Capitalization” methodology of index construction is regarded as an industry best practice globally.

All major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the Free-float methodology.

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Tom Z December 9, 2010 at 11:37 pm

An abbreviation of the Bombay Exchange Sensitive Index (Sensex) – the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively-traded stocks on the BSE. Initially compiled in 1986, the Sensex is the oldest stock index in India.

The index is calculated based on a free-float capitalization method when weighting the effect of a company on the index. This is a variation of the market cap method, but instead of using a company’s outstanding shares it uses its float, or shares that are readily available for trading…

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GetMoneyRich December 9, 2010 at 11:37 pm

What are stock index like sensex & nifty?

Sensex & Nifty are nothing but ‘Stock Index’ which can make a common man know whether the market ig going up or going down.Stock Indexes are just Numbers that helps to measure the movement of market against a benchmark index, taken as 100, on a base year. Sensex is a stock Index for Bombay stock exchange (BSE) and Nifty if of National Stock Exchange (NSE).

Stock Index is calculated daily. The calculation is done by tracking the share price of constituent member companies. For Example, Sensex is an index comprising of 3o representing shares. These 30 shares represent all the balance shares normally traded in the market. Nifty has 50 representing shares.

The base date for Sensex is 1st April 1979 and for Nifty is 1st April 1995. This means that the sensex & Nifty were assumed to be 100 on their base dates.

CALCULATE MARKET CAPITALIZATION OF EACH REPRESENTING COMPANIES – If company has total 150 shares and out of these 150, 100 nos are owned by investors. Now suppose the closing price of share was Rs.20 on a trading day, then its market capitalization on that trading day will be 100 X 20 = Rs 2000.
CALCULATE TOTAL MARKET CAPITALIZATION – by adding market capitalization of all representing companies / shares. Suppose this value is Rs 1,00,000.

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Beverly December 9, 2010 at 11:37 pm

Sensex is the benchmark index of the Indian stock market. Sensex is very sensitive index

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