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How is BSE Sensex value calculated?
Formula to calculate Sensex Value of Sensex = (Total free float market capitalization/ Base market capitalization) * Base period index value. The base period (year) for Sensex calculation is 1978-79. The base value index is 100. Using the above formula, one can calculate the value of BSE Sensex.
How stock market price is determined?
Generally speaking, the prices in the stock market are driven by supply and demand. When a stock is sold, a buyer and seller exchange money for share ownership. The price for which the stock is purchased becomes the new market price. When a second share is sold, this price becomes the newest market price, etc.
How Sensex and Nifty points are calculated?
Like other macroeconomic indices, the Nifty and Sensex are also calculated with reference to a base year. While Nifty assigns a base value of 1000 and uses 1995 as the base year, Sensex assigns a base value of 100 and uses 1979 as the base year. The current index value is with reference to the base year value.
How to calculate the value of BSE SENSEX?
Value of Sensex = (Total free float market capitalization/ Base market capitalization) * Base period index value. The base period (year) for Sensex calculation is 1978-79. The base value index is 100. Using the above formula, one can calculate the value of BSE Sensex.
What is SENSEX in stock market?
The term Sensex is a portmanteau of Sensitive and Index. The Sensex is an index that reflects the Bombay Stock Exchange (BSE). The Sensex Index comprises 30 stocks on BSE.
Which stocks are included in the BSE SENSEX 2020?
BSE Sensex index comprises of the following stocks as of August 2020: 1 Reliance Industries Ltd. 2 HDFC Bank Ltd. 3 Infosys Limited 4 Housing Development Fin. Corp. Ltd. 5 Tata Consultancy Services Ltd. 6 ICICI Bank Ltd. 7 Hindustan Unilever Ltd. 8 Kotak Mahindra Bank Limited 9 ITC Ltd. 10 Bharti Airtel Ltd.
How do you calculate SENSEX in simple words?
As the formula of Sensex= (total free float market capitalization/ Base market capitalization) * Base index value. The base year to calculate Sensex is 1978-79, the base value is static but it has to be changed. According to BSE Rs. 2501.24 crore is to be used as the base market capitalization.