in india NIFTY and SENSEX are calculated on the basis of ??
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The Index is determined on a daily basis by taking into consideration the current market value divided by base market capital and then multiplied by the Base Index Value of 1000. Both Sensex and Nifty are stock market index used to determine the value and strength of the stock market.
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- Both the Nifty and the Sensex are indexes that help inventory consumers determine the stock marketplace's standard common overall performance trend. The essential distinction is that the Sensex has 30 organizations while the Nifty has 50.
- Nifty is greater well-known than Sensex because of the large variety of energetic inventory marketers, sturdy liquidity, and energetic purchasing for and selling, in spite of the truth that Sensex has outperformed Nifty standard.
- The NIFTY 50 is calculated the use of a flow-adjusted, marketplace capitalization weighted methodology*, wherein the index's degree displays the overall marketplace fee of all of the index's shares as compared to a particular base period.
- The marketplace capitalisation, or "Full Market Capitalisation," became used to assemble the Sensex. The free-flow is the share of a company's general stocks which can be effortlessly to be had for exchange through the overall public. It excludes promoters' holdings, authorities holdings, and different stocks with a purpose to now no longer be handy for buying and selling withinside the ordinary path of occasions at the marketplace.
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