Answer / 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

Answer / prashant

Sensex is calculated based on free float market
capitalization method

Market cap= total no.of shares*share price

Free float Shares =openly traded shares ( Total no of shares
- Promoters share)

Free float market cap= Free float Shares* current Market
price of stock

Once the free float market cap of all the 30 stocks is
calculated, it should be summed up and the value of sensex
can be calculated considering 100 basis point.

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