How Sensex is Calculated

Hello Friends,

I am going to tell you the secret formula for calculating a particular day's free floating market capitalisation.

Sensex = Free Floating MKt Capitalisation * Index Divisor

Sensex = (Free Floating MKt Cap) * 100 ( Index Value in 1978-79)/ Mkt Cap in 78-79

16183.55 = x * (index divisor .i.e. Assuming, the value of the index divisor is 0.12493117)

On March 31, 2006, the sum of the closing value of the 30 stocks that constitute the index was 1,393.07. On dividing this by the index divisor (0.12493117) we get the closing value of the index, which was 11150.7.

x = 16183.55 / 0.12493117

Today's Free Floating Mkt Cap = 129539.73 Crores


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