In India, NIFTY and SENSEX are calculated on the basis of _______________

Correct option is A

NIFTY (National Fifty) and SENSEX (Sensitive Index) are calculated using the free-float market capitalization method, which considers only the freely tradable shares of a company available in the market.

Information Booster:

1. Free-float Market Capitalization: Market value of shares available for public trading. It excludes promoters' holdings, government holdings, and other restricted shares.
2. NIFTY: A benchmark index of the National Stock Exchange (NSE), consisting of 50 actively traded stocks.
3. SENSEX: A benchmark index of the Bombay Stock Exchange (BSE), comprising 30 significant stocks.
4. Free-float methodology is preferred for better market representation and less manipulation.
5. The indices are updated regularly to include companies meeting eligibility criteria.

Additional Knowledge:

• (a) Free-float Market Capitalization: Reflects real market conditions; used globally for index calculation.
• (b) Authorised Share Capital: Refers to the maximum share capital a company can issue, irrelevant to index calculation.
• (c) Paid Up Share Capital: Refers to the amount paid by shareholders for issued shares, not used for index computation.
• (d) Issued Share Capital: Total shares issued to shareholders, does not reflect market trading conditions.