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Sector Name | Advances | No Change | Declined |
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Though the Bombay Stock Exchange may be the oldest stock exchange in the country, what makes it stand out are the indices that it introduced to make the lives of traders easier. Innumerable indices help simplify trading for even the traders that are new to the scenario.
Currently, the two largest stock exchanges in the country are the Bombay Stock Exchange and the National Stock Exchange. Most companies hold stocks in both of these, thus, expanding their avenues.
The BSE divides companies based on their free-float market capitalisations and the number of liquid shares offered. They are divided into LARGECAP, MIDCAP and SMALLCAP. The stocks for the LARGECAP companies are more reliable due to their financial stability, but they are often pretty expensive and not easy to buy for some traders.
BSE SMALLCAP SELECT index is a rules based index that measures the performance of the first 60 companies in the S&P BSE SMALLCAP. These companies also hold the greatest amount of liquid shares amongst all other SMALLCAP companies. The value of the BSE SMALLCAP SELECT index depends on the BSE SMALLCAP SELECT share price. This needs to be closely observed as it is a very dynamic index that keeps on changing.
To calculate the BSE SMALLCAP SELECT index, you need to first know the criteria for the division of the companies into LARGECAP, MIDCAP and SMALLCAP. The segmentation is based on the 85-15-5 segment rule, with the numbers representing the percentage of the total market cap of BSE ALLCAP. The further division is as follows-
As mentioned earlier, the value of the BSE SMALLCAP SELECT index will depend on the value of the BSE SMALLCAP SELECT share price.
The share price can be calculated as follows-
BSE SMALLCAP SELECT Share Price = Total Free-Float Market Capitalisation x Base Index Value / Base Market Capitalisation
Here the free float market capitalisations of only the companies in the top 60 of the SMALLCAP SELECT index will be considered.
The companies featured in this index are the most stable and least volatile among the SMALLCAP companies. The shares for these companies are cheaper and involve lesser risks. Thus, these shares are a great buy for traders who do not wish to spend much money. Make sure you keep a close check on the index while trading. These values keep changing almost regularly, and thus, making sure that you have the most recent data is essential.
