Days Range
Company | LTP | Change | Day Range |
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Sector Name | Advances | No Change | Declined |
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The BSE Sensex, which stands for the Stock Exchange Sensitive Index, is India’s oldest and most widely tracked stock market benchmark. It represents 30 of the largest, most liquid, and financially stable companies listed on the Bombay Stock Exchange (BSE). It spans key sectors of the Indian economy.
The BSE Sensex was launched on January 1, 1986 with a base value of 100 points for the period 1978–79. The index offers a reliable measure of aggregate market performance and investor sentiment over time.
As a free-float market capitalisation-weighted index, Sensex reflects the market value of constituent stocks adjusted for shares available for public trading, making it a realistic indicator of market movements.
Investors and analysts use the Sensex as a barometer of India’s equity markets and economic health, with changes in its level signalling shifts in market perception toward growth prospects and risk appetite.
When the index was first introduced in 1986, the entire market capitalisation technique was used to calculate the Sensex. As a result, all of the shares were included, regardless of whether they were accessible for active trading. The free-float market capitalisation technique replaced this method on September 1, 2003.
Free-float refers to the proportion of total outstanding shares that are available for public trading.
Shares held by promoters, governments, strategic investors, or employee welfare trusts are excluded from free float.
Free-float market capitalisation = Market capitalisation × Free-float factor.
Market capitalisation = Total outstanding shares × Current market price.
The percentage of shares that are accessible for trade is represented by the free-float factor.
The BSE Sensex value is calculated by using the following formula:
Value of Sensex = (Total free–float market capitalisation of 30 companies ÷ base period free-float market capitalisation) × base index value
Where:
Base year = 1978–79
Base index value = 100
The index is reviewed semi-annually in June and December, and companies are included based on liquidity, free-float market capitalisation, and trading frequency.
For example, Company X has 10 lakh outstanding shares. Out of these, 70% shares are freely tradable in the stock market. The current market price per share is ₹1,000.
The free-float market capitalisation will be calculated as follows:
|
Particulars |
Value |
|
Total outstanding shares (A) |
10 lakh |
|
Market price per share (B) |
₹1,000 |
|
Total market capitalisation (C = A × B) |
₹100 crore |
|
Free-float factor (D) |
0.70 |
|
Free-float market capitalisation (E = C × D) |
₹70 crore |
The BSE Sensex is reviewed semi-annually in June and December. During this review, companies may be added or removed based on predefined eligibility criteria. The key selection requirements are:
BSE listing: The company must be listed on the Bombay Stock Exchange (BSE).
Listing history: The stock should have been listed for at least 6 months. In exceptional cases, newly listed large companies may be considered earlier.
Free-Float market capitalisation: The company must rank among the top companies based on average free-float market capitalisation.
High liquidity: The stock must be actively traded on the BSE during the review period and meet minimum trading frequency requirements.
Average Daily Traded Value (ADTV): The company must have a significant average daily traded value to ensure sufficient market participation.
Sector representation: The index aims to represent key sectors of the Indian economy to maintain diversification.
Core business revenue: The company should generate revenue primarily from its main business activities.
You can invest in Sensex via Angel One in the following ways:
Investors and market analysts use Sensex as an indicator of the overall health of the Indian economy. The share markets move up and down based on the growth prospects of the economy. The Sensex today price is affected by the market forces of demand and supply that affect the share prices of the index constituents.
Every investment carries a certain degree of risk, and stock markets carry the risk of fluctuation in market prices. Sensex consists of heavyweight stocks from different sectors in the market. Hence, Sensex is naturally diversified. This reduces the market risk for investors. If the prices of some stocks fall, other stocks in the index cover your loss. Moreover, the risk is calculated in the form of the Beta of a stock. A higher beta indicates more risk. The Beta for Sensex is 1, i.e., the risk in comparison to the market movement is low.
The full form of the S&P BSE Sensex is the S&P Bombay Stock Exchange Sensitive Index. It is a stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE) in India.
Yes, it's possible to engage in trading S&P BSE Sensex futures and options contracts. This strategy is more involved than investing in Sensex stocks or ETFs, so it's essential to conduct thorough research and possibly consult a financial advisor.
The full form of Sensex is "Stock Exchange Sensitive Index."
During market hours, the S&P BSE Sensex is calculated in real time. Its value is updated continuously based on live price movements of its 30 constituent stocks.
The Sensex does not have a set market capitalisation. It measures the total free-float market capitalisation of its 30 member companies. The entire market capitalisation fluctuates on a daily basis as stock values rise and fall.
Yes, the S&P BSE Sensex is a benchmark index for India's equity market. It is commonly used to assess overall market performance and compare returns on equity mutual funds and portfolios.
