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How the BSE Sensex & Nifty Index Calculate & on wht basis?
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Answer Posted / 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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