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How is SENSEX calculated?
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Answer / sivakumar
Sensex is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period.
Formula = (sum of free-float Market Capital(30)benchmark stocks)*index factor
index factor=100/market captialvalue 2014_2015
where 100 is the index value during 2014-2015
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