How the BSE Sensex & Nifty Index Calculate & on wht basis?
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Answer Posted / madhu
Sensex is calculated based on free float market
capitalization method
Market cap= total no.of shares*share price
Free float market cap= Market cap of all the openly traded
shares
Free float market cap= Market cap * proportion of the
shares freely traded
Once the free float market cap of all the 30 stocks is
calculated, it should be summed up and the value of sensed
can be calculated based on the sensex base
Thus the value of sensex is obtained
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