•Example:
Assume SENSEX has only 2 stocks namely SBI and RELIANCE. Total shares in SBI are 500 out of which 200 are held by Government and only 300 are available for public trading. RELIANCE has 1000 shares out of which 500 are held by promoters and 500 are available for trading. Assume price of SBI Stock is Rs.100 and Reliance is Rs.200. Then "free-Floating Market Cap" of these 2 companies =
(300*100+500*200) = 30000+100000 = Rs. 130000
Assume Market Cap during the year 1978-79 was Rs.25000
Then SENSEX = 130000*100/25000 = 520.

Sir,
Could you please explain in details about this calculation. It is not clear to me that how did you got Rs. 25,000/-. It is simply you assumed or any base is there in that assumption..??
Please make me more clear about this.

Thanks
Sasikumar R Nair.
Muscat.

please help me anybody.
nairskrmr[at]gmail.com