A recession in the global economy worsens the performance of the index. There are multiple factors that influence the movement of Sensex and Nifty:įirstly, the condition of the global economy has a huge impact on indices.
Sensex comprises 30 well-established companies, whereas, Nifty comprises 50 top companies that are listed for trading on BSE and NSE respectively. The base index value for Sensex is 100, while the base index value of Nifty is 1000. On the other hand, Sensex is operated by BSE. Nifty is operated by a subsidiary of NSE called NSE Indices Ltd. Sensex stands for Stock Exchange Sensitive Index and it is a stock market index for BSE, whereas, Nifty stands for National Stock Exchange Fifty and it is a stock market index of NSE. The current market value is divided by the base market capital and then it is multiplied by the base value, i.e., 1,000, for the index value of Nifty on a daily basis. To note, the base value for calculating Nifty is 1,000. The IWF indicates the proportion of the shares that investors can trade in the stock market. Then, equity capital is multiplied with the price for finding out the free-float capitalisation.įurther, the result will be multiplied by the Investable Weight Factor (IWF) to obtain free-float market capitalisation. The equity and market price are multiplied in order to calculate market capitalisation. The method used to calculate Nifty is the same as Sensex, i.e., the free-float market capitalisation method.Īt the outset, market capitalisation is computed to calculate Nifty. Nifty comprises top 50 companies that are traded in the NSE. Nifty, a stock market index of the National Stock Exchange, stands for National Stock Exchange Fifty. To note, the base value for Sensex is 100.
Then, the free-float market capitalisation has to be calculated with the free-flow factor.įinally, to calculate the value of Sensex, the free-float market capitalisation value is divided by the base value or the index divisor of 100. To calculate Sensex, the market capitalisation has to be calculated by multiplying outstanding shares of a company with their prices.