How do NSE/BSE Calculates the EPS of indices on daily basis?

[sethuramansid]

Dear Seniors,

As per the nseindia.com or bseindia.com, the eps of NIfty and Sensex changes everyday. How do the NSE or BSE calculates of the EPS of indices on daily basis while the nifty or sensex companies offering the results on quaterly basis?

Seniors pls help on this.

 

[smartcat]

An individual company's results are announced once every quarter. So TTM (Trailing Twelve Months) EPS is updated only once in a quarter.

But Sensex/Nifty indices are made up of a number of companies, and each of those companies announce their quarterly results on different dates. So as and when results of individual companies are announced, the TTM EPS of Sensex/Nifty are updated.

 

[sethuramansid]

Hi

In continuation to my earlier question, on 21st november 2013, cnx nifty eps was 347.55 according to nseindia.com, but on 22/11/2013, the eps down to 338.55 without any nifty companies results. From that day onwards, the eps has come down to 336 on 29/11/2013. Why is that so when there is no nifty 50 companies results?

Thanks in advance.

 

[rh6996]

Not very sure, but maybe the reason : Index is calculated on Free Float Basis, maybe the EPS is also done accordingly, hence the EPS may change due to change in Promoter holding too !

 

[sethuramansid]

Hi

Well In that case, what kind of a reliability we can put when calculating the P/E ratio of nifty when investing?