![]() ![]() ![]() The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. SENSEX is calculated using the 'Free-float Market Capitalization' methodology, wherein, the level of index at any point of time reflects the free-float market value of 30 component stocks relative to a base period. Small wonder, the SENSEX has become one of the most prominent brands in the country. As the oldest index in the country, it provides the time series data over a fairly long period of time (from 1979 onwards). One can identify the booms and busts of the Indian equity market through SENSEX. SENSEX has captured all these happenings in the most judicious manner. More recently, real estate caught the fancy of the investors. In the late nineties, the Indian market witnessed a huge frenzy in the 'TMT' sectors. Right from early nineties, the stock market witnessed heightened activity in terms of various bull and bear runs. The growth of the equity market in India has been phenomenal in the present decade. The 'free-float market capitalization-weighted' methodology is a widely followed index construction methodology on which majority of global equity indices are based all major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology. Since September 1, 2003, SENSEX is being calculated on a free-float market capitalization methodology. It is scientifically designed and is based on globally accepted construction and review methodology. SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. The base year of SENSEX was taken as 1978-79. SENSEX, first compiled in 1986, was calculated on a 'Market Capitalization-Weighted' methodology of 30 component stocks representing large, well-established and financially sound companies across key sectors. ![]()
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