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Sensex and Nifty are numbers that represent how well the Indian stock market is doing. Let's see how they are calculated in simple terms: Sensex Calculation: Sensex is calculated by the Bombay Stock Exchange (BSE). It includes a group of specific stocks that represent different sectors of the IndianRead more
Sensex and Nifty are numbers that represent how well the Indian stock market is doing. Let’s see how they are calculated in simple terms:
Sensex Calculation:
- Sensex is calculated by the Bombay Stock Exchange (BSE).
- It includes a group of specific stocks that represent different sectors of the Indian economy.
- To calculate Sensex, we look at the total value of these stocks and how much of their shares are available for trading (known as free float).
- Each stock in the Sensex is given a weight based on its importance.
- The Sensex number is calculated by adding up the values of all the stocks, multiplied by their weights, and dividing the result by a starting value called the base value.
Nifty Calculation:
- Nifty is calculated by the National Stock Exchange (NSE).
- It includes 50 stocks that are actively traded in different sectors of the economy.
- Similar to Sensex, Nifty also considers the total value of these stocks and the proportion of shares available for trading (free float).
- Each stock in the Nifty is given a weight based on its importance.
- The Nifty number is calculated by adding up the values of all the stocks, multiplied by their weights, and dividing the result by a starting value called the base value.
These calculations are a simplified explanation of how Sensex and Nifty are derived. Please note that the actual calculations may involve more complexities, and experts provide detailed methodologies for those who want to explore them further.
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You can have more than one demat account, which is like a digital locker for your investments. There isn't a specific limit on how many demat accounts you can have. But before opening multiple accounts, there are a few things you should keep in mind. First, having multiple demat accounts means moreRead more
You can have more than one demat account, which is like a digital locker for your investments. There isn’t a specific limit on how many demat accounts you can have. But before opening multiple accounts, there are a few things you should keep in mind.
First, having multiple demat accounts means more paperwork and tasks to manage your investments. You’ll need to keep track of transactions, maintain records, and stay organized.
Second, each demat account may have its own fees and charges. These can include maintenance charges, transaction fees, and annual fees. Holding multiple accounts can increase these costs, so it’s important to consider the expenses involved.
Third, some people open multiple demat accounts to separate different types of investments or to diversify their portfolio. This can help them manage their investments better based on their goals or strategies.
Lastly, it’s important to follow the legal and regulatory rules related to investments and securities in your country. While there’s usually no restriction on the number of demat accounts you can have, it’s essential to comply with the applicable laws.
To make the best decision for your situation, it’s a good idea to seek advice from a financial advisor or professional. They can guide you on whether having multiple demat accounts is suitable for you and help you understand the implications involved.
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