Tuesday, October 27, 2015

Sensex vs Nifty

Ever wondered why Sensex is around 25,000, whereas Nifty is only around 8,000. 

The table below provides a comparison between the two. See if you can spot the answer.


                
Features Sensex Nifty
Base Year 1978-79 1994-1995
Base Value 100 1000
Constituents 30 50
Calculation Method Free-Float Capitalization (01-Sep-2003) Free-Float Capitalization (26-June-2009)
Location Mumbai Delhi
Authority Bombay Stock Exchange (BSE) National Stock Exchange (NSE)
Base Capital N/A 2.06 Trillion Rs.
Start Date 01-01-1986 03-11-1995

The trick is in the base year, as more time elapsed for Sensex, the index has multiplied more times even though the base is smaller. 

No comments:

Post a Comment