If you are an investor who has just started the journey of investment, then you would be aware of how volatile the market is. There are unpredictable aspects of it and it is always required to pay attention to every activity and change in the market. there are many regulations that investors need to follow to keep up with the market. Following Sensex and Nifty is one of the parts of it. All this can be confusing if you are a new investor and it can get difficult to handle. Some platforms assist you with the information on the market and help you to understand the market in a better way. One of the best platforms for this is 5paisa.
Sensex is an index set by the Bombay Stock Exchange and it is used as the official index for gauging the performance of the Indian market and it comprises 30 companies with prominent stocks. These 30 companies are from different sectors so that it is easier for the government to set the bar and compare different companies. It truly reflects the Indian market. depending on the increase and decrease of the Sensex index the increase and decrease of the stock market is also determined. The companies that are in the Sensex are the ones that are actively taking part in the trading activities of the stock market and are at the top level. The Free Float Market Capitalization methodology is used to calculate Sensex. The following formula is set by the BSE and government to use for calculating Sensex:
Free-Float Market Capitalization = Market Capitalization * Free Float Factor.
There is a criterion set even for the 30 companies who are a part of the Sensex. The sensitivity Index is the benchmark index used by the Bombay Stock Exchange.
All these aspects can be confusing if you are a new investor as you need some knowledge about the stock market and its working, this is acquired slowly but if you take the help of some platform then your work gets easier and the platform assists you in understanding different concepts of the stock market.
One of the best platforms for this is 5paisa. They also offer their customers to open a Demat account which is a great way to start the journey. Since their Demat account is the most convenient in the market it gets easier to get started with it. opening a Demat account is the easiest with 5paisa and they will guide you with every query that you may have.
Here are the benefits of being a part of 5paisa:
- 24/7 assistance
- Variety of services
- Benefits of using the Lumpsum and SIP calculator
- Stay updated with the upcoming IPOs
- Get notified regarding the changes in the stock market.
- A brokerage calculator is available for the users.
- Quick and easy Demat account services.
When you choose 5paisa you get better at trading and it also helps you to stay updated with all the changes occurring in the market