How to calculate BSE SENSEX?

How Sensex is calculated? The Sensex has a very important function. The Sensex is supposed to be an indicator of the stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally going down.

To show this accurately, the Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies. It is calculated using the “free-float market capitalization” method. This is a world wide accepted method as one of the best methods for calculating a stock market index.

Please note: The method used for calculating the Sensex and the 30 companies that are taken into consideration are changed from time to time. This is done to make the Sensex an accurate index and so that it represents the BSE stocks properly.

To really understand how the Sensex is calculated, you simply need to understand what the term “free-float market capitalization” means.

All About Sensex, Launch of BSE Sensex

What is Sensex in the stock market?

What are the objectives of SENSEX?

How to calculate BSE SENSEX?

What is the beta of SENSEX scrips?

SENSEX - Scrip selection criteria

Maintenance of SENSEX

How is the closing Index calculated?

What are the criteria for selection and review of scrips for the SENSEX?

Who selects these 30 stocks & How do they select these 30 stocks?

Dollex series of BSE indices

Book Building - About Book Building

Definition of Free-float & Determining Free-float factors of companies

Understanding Free-float Methodology & Its Major advantages

Book Building - Glossary