There are two major indices in Indian stock market: BSE Sensex and NSE Nifty.
The BSE Sensitive index of equity share prices was launched in 1986.
It compromises 30 shares and its base year is 1978-79 stock market. The major criterion for the selection of a scrip within the Sensex is large capitalization. Besides this criterion other criteria like the number of trades, the average value of shares traded per day as a percentage of a total number of outstanding shares, are considered for inclusion within the Sensex.
The recent revamp was on March 11, 2000 which came into effect on April 10. Certain scrips like India Hotels, IDBI, Tata Chemicals, and Tata Power were replaced by Satyam Computers, Zee Telefilms, Dr. Reddy’s Laboratories, and Reliance Petroleum. The stock market new economy sticks have now percent weightage within the index. The BSE Sensex was revised again on January 7, 2002. when the motorcycle major Hero Honda displaced Mahindra and Mahindra and HCL Technologies displaced NIIT.
Another index that has become very fashionable in stock market of your time is that the S&P CNX NIFTY.
The National stock market began equity in November 1994, and its volumes surpassed that of BSE during a very short span of your time. NSE and CRISIL undertook a venture, wherein they jointly promoted Indian Index. Services and products as specialized organizations to supply index services.
If a buy order for 1,000 shares goes through at Rs 102, then the market impact cost is 2%. If a buy order or 2000 shares goes through at. Rs 104 then the market impact cost at 2,000 shares is 4%. For the stock to be included within the S&P CNX Nifty it must trade the entire portfolio of Rs 2 crore at an impression cost than 1.5 percent on 85 percent of the tidings days. Nifty represents about 44 percent of the entire stock market capitalization on NSE. The S&P CNX Nifty may be a widely used indicator. Six index funds an index futures and options launched at NSE are supported by S&P CNX Nifty.
