The Sensex measures the Bombay Stock Exchange stock rates of 30 listed companies. If the SENSEX rises, it indicates that the stock price of most Bombay Stock Exchange Firms (BSE) has gone up and if the SENSEX falls, it means that the share price of most BSE firms has fallen. The primary cause of SENSEX fluctuations is the price fluctuations of these 30 companies.
The “Bombay Stock Exchange” (BSE) introduced the SENSEX on 1 January 1986. It is one of the most extensive indices of stock markets in India. It measures fluctuations in the share prices of 30 companies. In terms of market value, turnover, profit, etc., these 30 companies are large firms. If the SENSEX is rising, it indicates that the share price of most BSE companies is growing, and if the SENSEX is falling, it indicates that the share price of most BSE companies is falling. The Sensex base year is 1978–79 and the base index value is set at 100.
How Sensex is a calculated number that serves as an indicator of stock market performance and investor sentiment. It is an index of thirty stocks representing various industrial sectors of the Indian economy.
How is the SENSEX fluctuation calculated?
The SENSEX fluctuations are calculated based on the stock price fluctuations of all 30 firms recorded. The value of the SENSEX is calculated on a per-minute basis.
List of companies forming BSE 30
- Housing Development Finance Corporation Ltd.
- State Bank of India
- Dr. Reddys Laboratories Ltd.
- HDFC Bank Ltd.
- Hero MotoCorp Ltd.
- Infosys Ltd.
- Kotak Mahindra Bank Ltd.
- Oil & Natural Gas Corporation Ltd.
- Reliance Industries Ltd.
- Tata Steel Ltd.
- Larsen & Toubro Ltd.
- Mahindra & Mahindra Ltd.
- Tata Motors Ltd.
- Hindustan Unilever Ltd.
- Asian Paints Ltd.
- ITC Ltd.
- Wipro Ltd.
- Sun Pharmaceutical Industries Ltd.
- ICICI Bank Ltd.
- Axis Bank Ltd.
- Bharti Airtel Ltd.
- Maruti Suzuki India Ltd.
- Tata Consultancy Services Ltd.
- NTPC Ltd.
- Power Grid Corporation of India Ltd.
- Adani Ports and Special Economic Zone Ltd.
- Bajaj Auto Ltd.
- Coal India Ltd.
- Tata Motors – DVR Ordinary
The SENSEX is not only scientifically designed but is also based on construction methodology and reviews that have been accepted globally. The SENSEX is a basket of 30 constituent stocks that was first compiled in 1986, representing a sample of large, liquid and representative companies.
The base year of SENSEX is 1978-79 and its base value is 100. Both print and electronic media widely report the index in domestic and international markets.
The index was initially calculated based on the “full market capitalization” methodology but was transferred to the free-float methodology from September 1, 2003. Index Construction Methodology “Free-float market capitalization” is seen globally as an industry best practice. The free-float method is used by all major index providers such as MSCI, FTSE, STOXX, S&P and Dow Jones.