Indian Index

As I have already explained in my previous post, how to calculate Sensex & Nifty. Now I will explain the same by taking an example

As on Feb 8 2011

SENSEX

Free float market capitalization = 1347365 Cr

Index Value = 100

Index market capitalization value in base year =7579 Cr ( Approx )

SENSEX = 13473650000000 * 100 / 75790000000

= 17777.6o

NIFTY

Free float market capitalization = 1565788 Cr

Index Value = 1000

Index market capitalization value in base year = 294764 Cr ( Approx )

NIFTY = 15657880000000 * 1000 / 2947640000000

= 5312.55