SENSEX & NIFTY

WHAT IS SENSEX
The Sensex is an Index
Change in the value over a period of time

An Index is basically an indicator (WPI, CPI-

Wholesale price index, Consumer price index)
It gives you a general idea about whether most of
the stocks have gone up or most of the stocks
have gone down.
 SENSEX CALCULATION
The SENSEX is an indicator of all the prices of the major
companies of the BSE (Bombay Stock Exchange)
It is based on 30 stocks. (Representative among 5000)

These stocks have been picked from various sectors

They represent well-established and financially sound

companies.
The Base value of the Sensex is 100 and the Base Year
is 1978-79.
THE 30 SENSEX STOCKS
 METHODOLOGY
Sensex is calculated using Free float Market
Capitalization methodology
Share 1,00,000 = 40000 with promoter not for trading
purpose . Those 60000 available for market value.
60000 * Market capitalization = Free Float

Free- float market capitalization is defined as that

proportion of total shares issued by the company that
are readily available for trading in the market.