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Sensitive Index
Sensitive Index
If the Sensex goes up, it means that the prices of the stocks of most of the
major companies on the BSE have gone up. If the Sensex goes down, this
tells you that the stock price of most of the major stocks on the BSE have
gone down.
Just like the Sensex represents the top stocks of the BSE, the Nifty
represents the top stocks of the NSE.
Just in case you are confused, the BSE, is the Bombay Stock Exchange and
the NSE is the National Stock Exchange. The BSE is situated at Bombay and
the NSE is situated at Delhi. These are the major stock exchanges in the
country. There are other stock exchanges like the Calcutta Stock Exchange
etc. but they are not as popular as the BSE and the NSE.Most of the stock
trading in the country is done though the BSE & the NSE.
Besides Sensex and the Nifty there are many other indexes. There is an index
that gives you an idea about whether the mid-cap stocks go up and down.
This is called the “BSE Mid-cap Index”. There are many other types of
indexes.
There is an index for the metal stocks. There is an index for the FMCG stocks.
There is an index for the automobile stocks etc.
Ans This article explains how the value of the “BSE Sensex” or
“sensitive index” is calculated. If you are not sure what we mean by
the Sensex or what the Sensex is all about, you can find this out by
world wide accepted method as one of the best methods for calculating
Please note: The method used for calculating the Sensex and the 30
companies that are taken into consideration are changed from time to
time. This is done to make the Sensex an accurate index and so that it
“market capitalization” before. You have! When you are talking about
market capitalization!
terms of it’s shares! To put it in a simple way, if you were to buy all the
Depending on the value of the market cap, the company will either be a
company whose market cap you are interested in finding out! The
Having seen what market cap is and how to find out the market cap of
market
5) What is "free-float market capitalization"?
Govt. may hold some of the shares. Some of the shares may be held
Now, only the “open market” shares that are free for trading by
and certain shares that are not available for trading in the open
market.
According the BSE, any shares that DO NOT fall under the following
• Holdings by founders/directors/
"controlling interest"
• Government holding as
promoter/acquirer
bodies/ individuals
• Equity held by associate/group
companies (cross-holdings)
trusts
in normal course.
Sensex!
100,000/4000=150,000
?150,000/100,000*4000
Rs.150,000 Cr!
Please Note: Every time one of the 30