Showing posts with label Sensex. Show all posts
Showing posts with label Sensex. Show all posts

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.