Sensex calculation...>!!
This query is : Resolved
22 April 2012
How is the value of Sensex Calculated....what is the formula for its calculaton???
23 April 2012
Hello Sidharth,
Sensex is basically a weighted average of prices of 30 stocks. Similar to say a calculation of average of marks in exams with some papers having higher weightage and some having lower. In case of Sensex, weight assigned to individual stock is the free-float market capitalization.
You can read in details the calculation and methodology at following link-
http://www.bseindia.com/about/abindices/bse30.asp
Sensex is basically a weighted average of prices of 30 stocks. Similar to say a calculation of average of marks in exams with some papers having higher weightage and some having lower. In case of Sensex, weight assigned to individual stock is the free-float market capitalization.
You can read in details the calculation and methodology at following link-
http://www.bseindia.com/about/abindices/bse30.asp
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