Sensex Turned 40: Up 15,500% in 4 Decades, SEBI Chief Prioritises Governance, Risk and Quality

On January 2, 2026, the BSE Sensex completed 40 years as India’s benchmark market index. Marking the milestone, SEBI Chairman Tuhin Kanta Pandey stressed the need for India's capital markets to prioritise governance, technology use, and institutional resilience alongside expanding participation and volume. He spoke at an event hosted by BSE on January 2, 2026. 

40-Year Journey of Sensex  

Launched in January 1986 with a base date of 1978–79, the Sensex stood at 549. Over 4 decades, it rose 15,521% to touch 85,762 on January 2, 2026. A ₹5,000 investment in a Sensex-linked portfolio in January 1986 would be worth approximately ₹7,80,000 now, excluding dividends. 

Focus Shifts from Market Size to Institutional Quality 

Pandey emphasised that India's marketplace needs more than capital and investor growth—it needs trust. He noted that real progress comes not only from trading highs but also from strong institutional frameworks.  

Since its inception, the Sensex has reflected India's wider transition from manual trading to a tech-based economy. According to Pandey, companies that have remained in the index for decades demonstrate the long-term value of ethical governance and sustainable performance. 

Institutional Reforms and Enforcement Mechanisms 

The SEBI chairman highlighted how reforms such as transparent depositories, stronger clearing systems, and sound regulation were crucial to maintaining investor confidence. He stated, “No market can sustain growth without trust,” explaining that institutional accountability and transparency are cornerstones of this effort.  

SEBI has introduced tighter board governance norms and mandatory independent evaluations for Market Infrastructure Institutions (MIIs) to bolster oversight. 

Read More: India's ₹1 Trillion Market Cap Club Expands 14% in 2025! 

Companies That Stood the Test of Time 

Over the last 40 years, the constituents of the BSE benchmark Sensex have kept changing. Stocks have entered and exited the index as India’s economy evolved. Yet, a few names have remained regular constituents for a very long time, Hindustan Unilever, ITC, Reliance Industries, and Larsen & Toubro. 

Tech Integration for Secure Market Functioning 

On the technological front, Pandey identified the responsible adoption of artificial intelligence (AI) as a key factor in maintaining market robustness.  

He pointed to tools such as SEBI Sudarshan, used to monitor unregistered digital activity and surveillance of corporate disclosures. AI will assist in swiftly identifying risks and unusual market behaviour, contributing to timely supervision. 

Sectoral Composition Today 

As of 2026, financial services make up 39% of the Sensex weight, rising from 22% 2 decades ago. The IT sector's share has dropped from 20% to 13%, while consumer discretionary has tripled. Traditional manufacturing and commodities sectors have shrunk in weightage. 

Conclusion 

SEBI’s renewed focus on market governance, risk management, and responsible tech use comes at a time of rising complexity in India's securities ecosystem. Chairperson Tuhin Kanta Pandey reiterated that trust and strong regulation are foundational to sustainable market integrity. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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