What is BSE Sensex & What does it indicate?
8:19 AM Edit This 0 Comments »
BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted
index composed of 30 stocks started in 01 of jan, 1986. It consists of the 30 largest
and most actively traded stocks, representative of various sectors, on the Bombay
Stock Exchange. These companies account for around one-fifth of the market
capitalization of the BSE. The base value of the sensex is 100 on April 1, 1979, and
the base year of BSE-SENSEX is 1978-79.
The Points in sensex represents the Average value of the companies listed nothing
but the average weighted movemnt of these stocks. Say e.g tata steel has 10%
weighatge in the index and overall growth in tata steel is 5% in particular day , so
tata steell contribution will be 10*1.05, and so on so forth all calculation will be done
and final average increase or decrease will be done and so on just u will be having
market caps of 50 companies and then total of the market caps of 50 companies.
When u divide the company market cap by total cap then u will be getting, the
individual weightage of the company in the sensex.
SENSEX indicates the Economy of a country.
0 comments:
Post a Comment