1W Return
▼-1.51%
1M Return
▼-3.18%
6M Return
▲4.44%
1Y Return
▼-0.98%
3Y Return
▲40.60%
Open
80695.5
Prev. Close
81481.86
| Company | Market Cap | Market Price | Sector |
|---|---|---|---|
11,59,408.02 | 1,906.30 -26.30 (-1.36%)▼ | Telecomm-Service | |
19,08,213.44 | 1,389.40 -20.70 (-1.47%)▼ | Refineries | |
5,49,871.14 | 875.70 -9.15 (-1.03%)▼ | Finance | |
6,31,034.01 | 1,504.70 -14.30 (-0.94%)▼ | IT - Software | |
10,58,024.30 | 1,469.10 -13.30 (-0.90%)▼ | Banks |
What is BSE Sensex?
The BSE Sensex, officially known as the S&P BSE Sensex, is India’s oldest and most respected stock market index, launched in 1986 by the Bombay Stock Exchange (BSE). The term "Sensex" is derived from "Sensitive Index" and it represents the performance of 30 of the largest, most financially sound, and most actively traded stocks listed on the BSE. These companies come from diverse sectors, including finance, IT, energy, healthcare, and consumer goods, offering a comprehensive snapshot of the Indian economy’s health and market sentiment.
The Sensex serves as a bellwether for the Indian equity market, widely tracked by investors, analysts, and fund managers both in India and internationally. Its movements reflect the collective performance of the selected blue-chip companies, making it a crucial benchmark for portfolio performance comparison and investment decisions. The Sensex is also the foundation for various investment products, including mutual funds, exchange-traded funds (ETFs), and derivatives. Regularly reviewed to maintain its relevance, the Sensex’s composition changes as per the evolving market landscape, ensuring that only the most significant and representative companies are included. The index is calculated in real-time throughout market hours, providing immediate updates on market direction.
How is BSE Sensex calculated?
The BSE Sensex is calculated using the free-float market capitalisation-weighted methodology, which ensures that only shares that are readily available for trading by the general public impact the index’s value.
- The free-float market capitalisation for each of the 30 constituent companies is determined by multiplying the company’s share price by the number of shares available in the market (excluding promoter and locked-in shares) and then by the company-specific free-float factor.
- The sum of these free-float market capitalisations for all constituent stocks gives the total free-float market capitalisation of the Sensex.
- This total is then divided by a fixed "Index Divisor", which normalises the index value to a base period (1978-79, with a base value of 100).
- The divisor is adjusted periodically for corporate actions like stock splits, rights issues, or new inclusions to ensure continuity and comparability over time.
- The Sensex value thus reflects real-time movements in the free-float market capitalisation of its 30 companies, capturing market trends and investor sentiment.
- Updates are made every few seconds during trading hours, making Sensex a highly dynamic and reliable indicator for the Indian equity market.
Selection criteria for BSE Sensex
The selection of companies for inclusion in the BSE Sensex is based on strict and transparent criteria. Companies must be listed on the Bombay Stock Exchange and should rank among the top stocks in terms of average daily market capitalisation and traded value over the last six months. They must also have a high liquidity, demonstrated by a significant trading frequency and volume. Only those companies with a minimum listing history of six months are eligible, except in cases of large-cap IPOs that qualify based on size and trading activity. Additionally, the Sensex aims to represent a diverse range of sectors to provide a balanced view of the Indian economy. The index is reviewed semi-annually, and changes are made to ensure it continues to represent the most influential and widely held stocks in the market.
BSE Sensex FAQs
What are BSE Sensex stocks?
BSE Sensex stocks are the 30 largest and most actively traded companies listed on the Bombay Stock Exchange. These companies are selected from a variety of sectors and serve as representatives of the broader Indian equity market, forming the constituents of the Sensex index.
How to buy BSE Sensex stocks?
To buy BSE Sensex stocks, open a demat and trading account with a registered stockbroker. Use the broker’s trading platform to search for and purchase shares of the 30 companies that constitute the Sensex, either individually or by investing in Sensex-based mutual funds or ETFs.
What is the objective of BSE Sensex?
The primary objective of the BSE Sensex is to provide a reliable and transparent benchmark for measuring the performance of the Indian equity market. It aims to reflect the price movements and overall health of the leading, most representative companies across major economic sectors.
Is it safe to invest in BSE Sensex?
Investing in BSE Sensex is generally considered relatively safe compared to individual stocks, as it represents a diversified portfolio of blue-chip companies. However, like all equity investments, it is subject to market risks and price volatility. As an investor, you should assess your risk appetite before investing.
In what frequency is the Sensex calculation done?
The Sensex is calculated in real-time, with index values updated every few seconds throughout each trading session. This high-frequency calculation ensures that the index accurately reflects the latest market developments and investor sentiment.
How do I start trading in Sensex
To start trading in Sensex, open a demat and trading account with a SEBI-registered brokerage. Fund your account, research Sensex companies, and place buy or sell orders for their shares using the trading platform. You can also invest via Sensex-based index funds or ETFs for broader market exposure.