Sensex and Nifty calculation simplified
Have you
ever wondered what the SENSEX and NIFTY is? How are they calculated?
SENSEX i.e. Sensitive Index is the benchmark index of Bombay Stock Exchange
(BSE) composed of 30 of the largest and most actively-traded stocks of
BSE.
Calculation
Method
BSE uses Free-Float
methodology (multiplying the number of shares of top 30 companies with
their respective equity’s price excluding locked in shares i.e. the ones hold
by promoters, government and those having controlling interest in the concern)
to calculate the index. For e.g. A company has 2 promoters X and Y and shares
held by them are 1000 and 2000 respectively and to take a loan 1500 shares has
been issued to government as a collateral. So 1000+2000+1500=4500 shares will
be taken as locked in securities and all other shares are used to calculate
SENSEX. Now question arises what is the process. Here it is –
1.
Each company’s Market capitalization is determined (No. of shares x
price)
2. Free
float factor of company is determined by BSE. Free float factor (between
0.05-1.00) is a multiple by which company’s Market capitalization is
multiplied to arrive at Free-float market capitalization. The factor is
determined by details submitted by company. It is a kind of weightage given to
companies. Say Capitalization is 36,00,000
3. Now Ratio
and Proportion is used. How? Base index of 1978-79 is used. Index of
1978-79 is taken as 100. Say the Free-float market capitalization was
60,000 (may vary) at the time.
When the
capitalization was 60,000 index was 100
When the
capitalization is 36,00,000 index is 6000
So it means
SENSEX is 6000
INDEX AS OF
20th SEPTEMBER 2013
|
Company
Name
|
Company
Name
|
Company
Name
|
|
Bajaj Auto Ltd
|
Hindustan Unilever Ltd
|
Oil and Natural Gas Corporation Ltd
|
|
Bharat Heavy Electricals Ltd
|
Housing Development Finance Corporation Ltd
|
Reliance Industries Ltd
|
|
Bharti Airtel Ltd
|
ICICI Bank Ltd
|
Sesa Goa Ltd
|
|
Cipla Ltd
|
Infosys Ltd
|
State Bank of India
|
|
Coal India Ltd
|
ITC Ltd
|
Sun Pharmaceutical Industries Ltd
|
|
Dr.Reddy's Laboratories Ltd
|
Jindal Steel And Power Ltd
|
Tata Consultancy Services Ltd
|
|
GAIL (India) Ltd
|
Larsen & Toubro Ltd
|
Tata Motors Ltd
|
|
HDFC Bank Ltd
|
Mahindra and Mahindra Ltd
|
Tata Power Company Ltd
|
|
Hero MotoCorp Ltd
|
Maruti Suzuki India Ltd
|
Tata Steel Ltd
|
|
Hindalco Industries Ltd
|
NTPC Ltd
|
Wipro Ltd
|
NIFTY i.e. National Stock Exchange Fifty is the benchmark index of National
Stock Exchange (NSE) composed of 50 from of the largest and most
actively-traded stocks of NSE. 50 Top stock are selected from 24 Sectors.
Calculation
Method is just like BSE except the Base value is taken
of year 1995 and is set to 1000 and base capital of Rs. 2.06 trillion
is taken.
INDEX AS OF
20th SEPTEMBER 2013
|
Company
Name
|
Industry
|
Symbol
|
|
ACC Ltd.
|
CEMENT AND CEMENT PRODUCTS
|
ACC
|
|
Ambuja Cements Ltd.
|
CEMENT AND CEMENT PRODUCTS
|
AMBUJACEM
|
|
Asian Paints Ltd.
|
PAINTS
|
ASIANPAINT
|
|
Axis Bank Ltd.
|
BANKS
|
AXISBANK
|
|
Bajaj Auto Ltd.
|
AUTOMOBILES - 2 AND 3 WHEELERS
|
BAJAJ-AUTO
|
|
Bank of Baroda
|
BANKS
|
BANKBARODA
|
|
Bharat Heavy Electricals Ltd.
|
ELECTRICAL EQUIPMENT
|
BHEL
|
|
Bharat Petroleum Corporation Ltd.
|
REFINERIES
|
BPCL
|
|
Bharti Airtel Ltd.
|
TELECOMMUNICATION - SERVICES
|
BHARTIARTL
|
|
Cairn India Ltd.
|
OIL EXPLORATION/PRODUCTION
|
CAIRN
|
|
Cipla Ltd.
|
PHARMACEUTICALS
|
CIPLA
|
|
Coal India Ltd.
|
MINING
|
COALINDIA
|
|
DLF Ltd.
|
CONSTRUCTION
|
DLF
|
|
Dr. Reddy's Laboratories Ltd.
|
PHARMACEUTICALS
|
DRREDDY
|
|
GAIL (India) Ltd.
|
GAS
|
GAIL
|
|
Grasim Industries Ltd.
|
CEMENT AND CEMENT PRODUCTS
|
GRASIM
|
|
HCL Technologies Ltd.
|
COMPUTERS - SOFTWARE
|
HCLTECH
|
|
HDFC Bank Ltd.
|
BANKS
|
HDFCBANK
|
|
Hero MotoCorp Ltd.
|
AUTOMOBILES - 2 AND 3 WHEELERS
|
HEROMOTOCO
|
|
Hindalco Industries Ltd.
|
ALUMINIUM
|
HINDALCO
|
|
Hindustan Unilever Ltd.
|
DIVERSIFIED
|
HINDUNILVR
|
|
Housing Development Finance Corporation Ltd.
|
FINANCE - HOUSING
|
HDFC
|
|
I T C Ltd.
|
CIGARETTES
|
ITC
|
|
ICICI Bank Ltd.
|
BANKS
|
ICICIBANK
|
|
IDFC Ltd.
|
FINANCIAL INSTITUTION
|
IDFC
|
|
IndusInd Bank Ltd.
|
BANKS
|
INDUSINDBK
|
|
Infosys Ltd.
|
COMPUTERS - SOFTWARE
|
INFY
|
|
Jaiprakash Associates Ltd.
|
CONSTRUCTION
|
JPASSOCIAT
|
|
Jindal Steel & Power Ltd.
|
STEEL AND STEEL PRODUCTS
|
JINDALSTEL
|
|
Kotak Mahindra Bank Ltd.
|
BANKS
|
KOTAKBANK
|
|
Larsen & Toubro Ltd.
|
ENGINEERING
|
LT
|
|
Lupin Ltd.
|
PHARMACEUTICALS
|
LUPIN
|
|
Mahindra & Mahindra Ltd.
|
AUTOMOBILES - 4 WHEELERS
|
M&M
|
|
Maruti Suzuki India Ltd.
|
AUTOMOBILES - 4 WHEELERS
|
MARUTI
|
|
NMDC Ltd.
|
MINING
|
NMDC
|
|
NTPC Ltd.
|
POWER
|
NTPC
|
|
Oil & Natural Gas Corporation Ltd.
|
OIL EXPLORATION/PRODUCTION
|
ONGC
|
|
Power Grid Corporation of India Ltd.
|
POWER
|
POWERGRID
|
|
Punjab National Bank
|
BANKS
|
PNB
|
|
Ranbaxy Laboratories Ltd.
|
PHARMACEUTICALS
|
RANBAXY
|
|
Reliance Industries Ltd.
|
REFINERIES
|
RELIANCE
|
|
Reliance Infrastructure Ltd.
|
POWER
|
RELINFRA
|
|
Sesa Goa Ltd.
|
MINING
|
SESAGOA
|
|
State Bank of India
|
BANKS
|
SBIN
|
|
Sun Pharmaceutical Industries Ltd.
|
PHARMACEUTICALS
|
SUNPHARMA
|
|
Tata Consultancy Services Ltd.
|
COMPUTERS - SOFTWARE
|
TCS
|
|
Tata Motors Ltd.
|
AUTOMOBILES - 4 WHEELERS
|
TATAMOTORS
|
|
Tata Power Co. Ltd.
|
POWER
|
TATAPOWER
|
|
Tata Steel Ltd.
|
STEEL AND STEEL PRODUCTS
|
TATASTEEL
|
|
UltraTech Cement Ltd.
|
CEMENT AND CEMENT PRODUCTS
|
ULTRACEMCO
|
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Sensex and Nifty calculation simplified
Reviewed by Unknown
on
1:32:00 PM
Rating:
Reviewed by Unknown
on
1:32:00 PM
Rating:
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