A share price index is a figure based on the current market prices of a group of shares listed on a stock exchange. It is important as a leading indicator of market behavior, a benchmark for portfolio performance, and as an underlying for derivatives. An index is compiled using a formula that divides the total current market capitalization by the base market capitalization. Important Indian indices include the BSE Sensex and Nifty 50. Factors that influence share prices include investor sentiment, company announcements, economic data, and world events. Stocks can become overbought or oversold if prices rise or fall sharply over a short period. Circuit limits restrict price movements on a single day.
A share price index is a figure based on the current market prices of a group of shares listed on a stock exchange. It is important as a leading indicator of market behavior, a benchmark for portfolio performance, and as an underlying for derivatives. An index is compiled using a formula that divides the total current market capitalization by the base market capitalization. Important Indian indices include the BSE Sensex and Nifty 50. Factors that influence share prices include investor sentiment, company announcements, economic data, and world events. Stocks can become overbought or oversold if prices rise or fall sharply over a short period. Circuit limits restrict price movements on a single day.
A share price index is a figure based on the current market prices of a group of shares listed on a stock exchange. It is important as a leading indicator of market behavior, a benchmark for portfolio performance, and as an underlying for derivatives. An index is compiled using a formula that divides the total current market capitalization by the base market capitalization. Important Indian indices include the BSE Sensex and Nifty 50. Factors that influence share prices include investor sentiment, company announcements, economic data, and world events. Stocks can become overbought or oversold if prices rise or fall sharply over a short period. Circuit limits restrict price movements on a single day.
A figure based on the current market price of a certain
group of shares on a stock exchange, such as the Nifty Stock Exchange 50 Share Index Important Of Index The lead indicator As a barometer for market behavior as a benchmark for portfolio performance as an underlying for derivatives like index futures and option How To Compile The Index Formula:
Index = Current Market Cap * Base Index Value
Base Market Cap
Assuming Base Market Value Is : 1000
How To Compile The Index Company Current Market Cap Base Market Cap ( in (In Crores) Crores) Reliance Industrias 105000 100000 ONGC 84000 80000 TCS 76000 80000 ITC 55000 60000 Coal India 54000 50000 Total 374000 370000 How To Compile The Index Index = 374000 * 1000 370000 = 1010.81 Important Indices BSE Indices Sensex BSE 100 BSE 200 BSE 500 BSE Auto Index BSE Bankex BSE Consumer Durable BSE Healthcare BSE Metal BSE Midcap BSE Oil & Gas BSE Small cap Index BSE Infotech Index Important Indices NSE Indices S & P CNX Nifty Bank Nifty CNX IT CNX Midcap CNX Nifty Junior S & P CNX 500 S & P CNX Defty
CNX = Crisil NSE Exchange / Indices
Live Trading Terminal Share Price Movement Factors Influencing Share Price • Investor Sentiment • Company Announcement • Analysts Earnings Estimates • Economic Data • Interest And Inflation • Exchange Rates • World Events • Hype Factors Influencing Share Price Government Policies Company Results Orders Market Rumors Political Instability Risk Involved In Share Price Movement/Capital Market Market Risk Interest Rates Risk Currency Risk Economical Risk Political Risk World Event Risk Over Bought / Over Sold An asset that has experienced sharp upward movements over a very short period of time is often deemed to be overbought An asset that has experienced sharp Downward movements over a very short period of time is often deemed to be oversold Circuit Levels BSE/NSE BSE Upper Circuit : 20% Lower Circuit : 10 %
NSE ( For Both Upper And Lower Circuit)
10% Change Before 14.00 : 1 Hour 10 % Change between 14.00 to 14.30 : 30 Mins 10% Change After 14.30 : No Circuit Circuit Levels BSE/NSE 20% Change Before 13.00 : 2 Hour 20% Change Between 13.00 to 14.00 : 1 Hour 20% Change After 14.00 : Trading Suspended For A Day 30 % : Trading Suspended For A day No Circuit Stocks There are no circuits on the 30 stocks included in the Sensex or the 50 included in the Nifty because these stocks are traded in the future and options market as well.