Sensex is very well termed as the sensitivity index which will be definitely helpful in providing people with easy access to the benchmark index of the Bombay Stock Exchange. It was established in the year 1986 and is the oldest stock index of India ever since its publication this has been considered one of the major indices of the Indian stock market.
Following are some of the very basic technicalities which you need to understand about the calculation associated with the Sensex today:
- First of all, people need to indulge in the calculation of the selection of the top 30 index stocks so that everybody will be able to carry out the free float market capitalisation technology and methodology.
- After this people need to determine the free float market capitalisation of the 30 selected companies with the formula of free float market capitalisation is equal to market capitalisation into the free float factor. The free float factor is basically known as the percentage of the total shares of the company which will be issuing the readily available common public.
- Determination of the free float market capitalisation value is very well and taken with the help of the value of Sensex which will be considered as free float market capitalisation divided by base market capitalisation into the base period index value.
It is also very much important for people to be clear about the technicalities of the scrip in this particular case and the selection of the scrip have been very well explained as follows:
- The concerned prescription should have the best possible listing history of approximately three months into the Bombay stock exchange and the requirement is reduced to one month if the company is newly listed and has the best possible four market capitalisation ranking in the top 10 list of the universe.
- The scrip should have been treated every day for the last three months
- The scrip should always be in the top hundred companies listed by the final rank
- The weightage of every prescription should be based upon three months’ average free float capitalisation which should be at 0.5% of the index
- Re-presentation should be carried out in a very balanced manner in the universe of the Bombay Stock exchange
- The concerned company should have an acceptable track record in the market
Hence, it is very much important for people to be clear about the technicalities associated with Sensex today with the help of the best experts at the companies like 5paisa so that everyone will be able to develop a good understanding very successfully. In this particular case, people will be able to enjoy a balanced perspective of dealing with things and ultimately will be able to enjoy a good understanding of the sector’s performance without any problem. Analysing this particular aspect will be definitely helpful in making sure that every concerned individual will be able to make the best possible investments in the world of the stock market which will be definitely provide him or her with the best possible fruitful returns in the long run.
