What means by Outstandaing Shares and...

#2
johnbest said:
Dear friends

Please tell me what does it means by Daily Outstanding Shares and Weightages?
Here you can get it for NSE.

Have a nice day

JohnBest
Hi John!

Outstanding shares of a company mean the no. of shares issued by the company. No. of Outstanding shares multiplied by the face value of one share is the Share Capital as appearing in the balance sheet of the company. At the other end, when this number is multiplied with market price of one share, Market Capitalization of the company is known.

As you must be aware, an index is a basket of securities. These securities assume to represent the market. Different weights are assigned to the securities depending upon the criteria of the exchange for the purpose of calculating the value of the Index. This weight is what is appearing in the weightage column on the page given by you.

Hope this make the things clear.

Best Regards,
--Ashish

P.S.: NSE assigns weights to the securities on the basis of their market capitalization for the purpose of calculating Nifty Value.
 
#3
aca_trader said:
Hi John!
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Hope this make the things clear.

Best Regards,
--Ashish

P.S.: NSE assigns weights to the securities on the basis of their market capitalization for the purpose of calculating Nifty Value.
Hello Ashish,

Can you tell me the formula for calculating Nifty Value. Traderji has already given 'weights' for securities in one thread (for SENSEX).

I have listen that earlier there was error by NSE in Nifty Value which they corrected immidiately. (I am not sure about it as I am new in this market)....so i want to develope a simple utility which takes Prices of scripts of Nifty (or Sensex) and calculate Index value itself.

Regards,

K.S.Kachhwaha
 
#4
cemcompusoft said:
Hello Ashish,

Can you tell me the formula for calculating Nifty Value. Traderji has already given 'weights' for securities in one thread (for SENSEX).

I have listen that earlier there was error by NSE in Nifty Value which they corrected immidiately. (I am not sure about it as I am new in this market)....so i want to develope a simple utility which takes Prices of scripts of Nifty (or Sensex) and calculate Index value itself.

Regards,

K.S.Kachhwaha
Hi Mr. Kachhwaha!

I am afraid if I precisely know how to calculate the NIFTY values. Ofcourse, it's based upon market capitalizaton of the constituents. But, getting the base value of Nifty and its adjustment since 1994 on account of change in composition, split, bonus and rights will prove to be a daunting task.

Yes, there was some problem in NIFTY computation the day reliance split was given effect which was corrected immediately. But I would suggest you to concentrate on trading leaving such mundane activities to the NSE.Afterall, even if the value of NIFTY is not correct, the market participants are not going to calculate it on their own rather they will react to the value reflecting on their screen and that is where the moeny will be made.

The weights of diff. constituents of NIFTY are available on http://www.nseindia.com/marketinfo/eod_information/outstanding_shares_nifty.jsp

Regards,
--Ashish
 
#5
aca_trader said:
Hi John!

Outstanding shares of a company mean the no. of shares issued by the company. No. of Outstanding shares multiplied by the face value of one share is the Share Capital as appearing in the balance sheet of the company. At the other end, when this number is multiplied with market price of one share, Market Capitalization of the company is known.

As you must be aware, an index is a basket of securities. These securities assume to represent the market. Different weights are assigned to the securities depending upon the criteria of the exchange for the purpose of calculating the value of the Index. This weight is what is appearing in the weightage column on the page given by you.

Hope this make the things clear.

Best Regards,
--Ashish

P.S.: NSE assigns weights to the securities on the basis of their market capitalization for the purpose of calculating Nifty Value.
Thanks Dear for the reply

Have a nice day
JohnBest
 

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