BSE has reached 15000 or 16000 points,how this is calculated.Please give some examples in explaination.?



I am aware that its based on 30 stocks but practically if u can give me explaining in detail by taking for example all 30 shares and how its calculated to reach at 15000 points or whatever points.

3 Replies to “BSE has reached 15000 or 16000 points,how this is calculated.Please give some examples in explaination.?”

  1. Each of the 30 companies is assigned a weight relative to its market cap. So as the market cap varies, these relative weights also vary. So the sum of these weights is the Sensex value. So when the prices of these companies vary, their relative weights vary and hence the sensex varies.


  2. SENSEX, first compiled in 1986 was calculated on a “Market Capitalization-Weighted” methodology of 30 component stocks representing a sample of large, well-established and financially sound companies. The base year of SENSEX is 1978-79. The index is widely reported in both domestic and international markets through print as well as electronic media. SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. From September 2003, the SENSEX is calculated on a free-float marke capitalization methodology. The “free-float Market Capitalization-Weighted” methodology is a widely followed index construction methodology on which majority of global equity benchmarks are bas






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