# How is BSE Sensex value calculated?

## How is BSE Sensex value calculated?

To calculate Sensex: – Formula of Sensex is applied; Sensex = (total free float market capitalisation/ base market capitalisation) * Base index value. – The base year to calculate Sensex is 1978-79 and the base value is static but it has to be changed.

## How are stock market points calculated?

For stocks, one point equals one dollar. So when you hear that a stock has lost or gained X number of points, it is the same as saying the stock has lost or gained X number of dollars. Using points to describe share price gains, or declines, is generally done to describe short-term results, such as for the day or week.

What does Sensex 60000 mean?

Read 2 replies. 31 years = 60,000 points. The BSE index hit 1,000-mark on July 25, 1990. It took a little over 31 years for the sensex to traverse from 1,000 level to the famed 60,000 level now. It took 9 years to cross the 5,000-mark as the BJP-led coalition government won majority in the Lok Sabha on October 11, 1999 …

How Sensex is calculated example?

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 is Nifty and Sensex value calculated?

The Index is determined on a daily basis by taking into consideration the current market value divided by base market capital and then multiplied by the Base Index Value of 1000. Both Sensex and Nifty are stock market index used to determine the value and strength of the stock market.

### How is NIFTY 50 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.

Who decides Sensex?

Sensex, a stock market indexes was launched in 1986 by BSE (Bombay Stock Exchange). It evaluates the fluctuations in stock prices of 30 big companies in terms of market value, turnover, profit etc. The value of the Sensex is calculated on every minute basis.

How Nifty is calculated?

Nifty 50 is calculated by taking the weighted value of the 50 stocks listed on NSE and is based on free-float market capitalization. The index value is calculated using market capitalization and reflects the value of the stocks relative to the base period.

#### How does the Sensex work?

The Sensex is calculated using the ‘freefloat market capitalisation’ method. According to this method, the level of index at any point of time reflects the free-float market value of 30 component stocks relative to a base period. Initially, the index was calculated based on the ‘full market capitalisation’ method.

#### How Sensex points are decided?

After determining the free-float market capitalization, the value of BSE Sensex is calculated using the below formula: Value of Sensex = (Total free float market capitalization/ Base market capitalization) * Base period index value. The base period (year) used here is 1978-79 and the base value is 100 index points.

On what factors Sensex depends?

Let’s discuss them in detail.

• Government Policies:
• Monetary Policy of RBI and Regulatory Policies of SEBI:
• Exchange Rates:
• Interest Rate and Inflation:
• Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs):
• Politics:
• Natural Disasters:
• Economic Numbers:

How indices are calculated?

The index is calculated by tracking prices of selected stocks (e.g., the top 30, as measured by prices of the largest companies, or top 50 oil-sector stocks) and based on pre-defined weighted average criteria (e.g., price-weighted, market-cap weighted, etc.)

## How is stock market index calculated India?

The index is calculated by adding the stock prices of the 30 companies and then dividing by the divisor. The divisor changes when there are stock splits or dividends or when a company is added or removed from the index.

How nifty BeES are calculated?

Each Nifty BeES unit is 1/10th of the S&P CNX Nifty Index value. Nifty BeES units are traded and settled in dematerialised form like any other share in the rolling settlement. Benchmark Mutual Fund calculates and disseminates real-time NAV for Nifty BeES on its website www.benchmarkfunds.com and on Reuters Page BEES01.

Who decides nifty50?

NSE Indices Limited
The NIFTY 50 is owned and managed by NSE Indices Limited (formerly known as India Index Services & Products Limited-IISL), India’s first specialized company focused on an index as a core product.