What is Sensex How does it work?
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What is Sensex How does it work?
The term Sensex refers to the benchmark index of the BSE in India. The Sensex is comprised of 30 of the largest and most actively traded stocks on the BSE and provides a gauge of India’s economy. It is float-adjusted and market capitalization-weighted. The Sensex is reviewed semiannually each year in June and December.
What is Sensex in simple words?
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. These stocks are the largest and most actively traded stocks on the BSE.
How is nifty percentage calculated?
The NIFTY 50 is computed using a float-adjusted, market capitalization weighted methodology*, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period.
What is nifty bank?
Nifty Bank, or Bank Nifty, is an index comprised of the most liquid and large capitalised Indian banking stocks. It provides investors with a benchmark that captures the capital market performance of Indian bank stocks. The index has 12 stocks from the banking sector. The index was launched in 2003.
Who is the owner of NSE?
National Stock Exchange
| National Stock Exchange of India’s Logo | |
|---|---|
| Founded | 1992 |
| Owner | Various domestic and global financial institutions, public and privately owned entities and individuals |
| Key people | Girish Chandra Chaturvedi (Chairperson) Vikram Limaye (MD & CEO) |
| Currency | Indian rupee (₹) |
What is the formula to calculate SENSEX?
The formulae used to calculate Sensex: Sensex = (total free-float market capitalisation/ Base market capitalisation) * Base index value. We have calculated the total free-float market capitalisation. The base year to calculate Sensex is 1978-79.
How to calculate market capitalization and SENSEX?
Market capitalization = Share price per share * number of shares issued by the company Once the free float market capitalization is determined. The value of BSE Sensex can be calculated using the formula below. Value of Sensex = (Total free float market capitalization/ Base market capitalization) * Base period index value.
What is the base year for SENSEX?
Base Year Index Value: The base year for Sensex is considered as 1978-79. In 1978-79, the Sensex is assumed to be at 100 points (the present number is about 55,000 points). Base Year Market Cap: A number for base year market cap must be calculated.
What happens when SENSEX value goes up?
If the Sensex value goes up, it means there is a general increase in prices of shares and vice versa. One can identify the booms and busts in the Indian stock market through S&P BSE SENSEX. The other index calculated in India is Nifty for the National Stock Exchange.