Can anyone tell me what s the effect of up, down in SENSEX on economy. What means sens*x aaj ithna bada or aaj ithna gira etc.
Nidhi Jain (CS ) (987 Points)
23 June 2011Can anyone tell me what s the effect of up, down in SENSEX on economy. What means sens*x aaj ithna bada or aaj ithna gira etc.
shwetha
(CWA learner)
(447 Points)
Replied 20 August 2011
The Sens*x is an indicator of all the major companies of the BSE.
If the Sens*x goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sens*x goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.
Lets discuss how to calculate sens*x:-
step - 1
Today's market capitalisation
________________________ = we get "something*"
Yesterdays market capitalisation
Step - 2
Something* X Yesterdays sens*x = Todays sens*x
step - 3
When we divide the company market capitalisation by total capital then we will be getting the individual weigthage of the company i the sens*x.
What is market capitalisation:-
It is the worth of company interms of shares. Simply todays value of company shares.
What is free float market capitalisation
Company shares may hold by different types of investors. The governmet may hold some of the shares. Some of the shares may hold by founders, directors, FDI's etc. Now , only the "open market"shares that are free for trading by anyone , are called "free-float" shares.
When we calculating the sens*x we are interested in theses "free-float" shares.
kenny
(asd)
(21 Points)
Replied 07 March 2012
Oil down around 2% gold down 2.4% all stocks down. Wow I misread that one. Are we correcting from last week or is this a taste of things to come? I am betting big money on binary options (marketsworld.com) and I cant take another day of losses. I figure a rebound tomorrow but a general downward trend. Hope I'm right. What say you?
Anshika
(-)
(178 Points)
Replied 09 March 2012
Nidhi in my opinion you should invest in market to learn about the market...(some very small investment say get 1 share of your desired company)
That is how i learned...
We only take interest when our money is involved.. some of your friends may suggest to read different articles abt investment in market bt we hardly bother to read them carefully... and markets keep changin and the articles hardly get updated..
Its rightly said "we learn from our experience"