Formation of bse sensex

If you question is  how the BSE index are calculated, it is based on free float capitalization method. In simple term,  Market price of the share of each companies in sens*x multiplied by the number of shares available in market (Excluding promoters/govt share).  The resultant number should be devided by previous day free float market capitalisation.

The above calculation will give the percentage increase in index. Apply this percentage on your previous day index number will give you the current index number.

Respected Sageer Sir,                                                                                                                                                          

First of all thanks for the reply but my Question is About Selection of 30 Comapnies.. means how 30 companies are selected to be entered in BSE SENSEX..??

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