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Bombay Stock Exchange (BSE) SENSEX | Market Index

Market Index

It refers to a hypothetical portfolio representing the entire market of that economy or a segment of the financial market. Each Index portfolio consists of component stocks/instruments (also known as constituents) that are valued based on its own methodology calculated and maintained by the Index provider (means the individual impact of constituents in an Index). Such impact can be on the basis of market capital, revenue or fundamental weighted. And the change of such Index overall value can be identified due to change in price or market capital of its individual constituents.

Bombay Stock Exchange (BSE) SENSEX

Also known as S&P Bombay Stock Exchange Sensitivity Index (linguistic blend of words sensitivity and index) which consists of 30 well-established companies listed and most actively traded on Bombay Stock Exchange.

The BSE SENSEX periodically reviews and modifies its composition to ensure it reflects current market conditions and is based on a free-float capitalisation methodology (different from the market capitalisation methodology) which uses shares that are freely available for trading in the market. This can be derived by reducing the directors shareholding from the total capitalization of a particular company and such resultant can be identified as weight to markup the complete index. The current market capitalization of BSE SENSEX as on June 30, 2020 is more than USD($) 2 Trillion.

The base value of this Index when published initially in 1st April '79 was taken as 100 and as per free-float capitalisation methodology, the level of index at any point of time reflects the free-float market value of 30 component stocks relative to a base period. Using the BSE SENSEX Index value information from Jan '2000, over the period till June '2020 is shown below-

The 30 component stocks of BSE SENSEX as on June 30, 2020 are-

Asian Paints (Paints)

Axis Bank (Banking - Private)

Bajaj Auto (Automobile)

Bajaj Finance (Finance (NBFC))

Bajaj Finserv (Finance (Investment))

Bharti Airtel (Telecommunications)

HCL Technologies (IT Services & Consulting)

HDFC (Finance (Housing))

HDFC Bank (Banking - Private)

Hindustan Unilever Limited (FMCG)

ICICI Bank (Banking - Private)

IndusInd Bank (Banking - Private)

Infosys (IT Services & Consulting)

ITC Limited (Cigarettes & FMCG)

Kotak Mahindra Bank (Banking - Private)

Larsen & Toubro (Engineering & Construction)

Mahindra & Mahindra (Automobile)

Maruti Suzuki (Automobile)

Nestle India (FMCG)

NTPC (Power generation/Distribution)

Oil and Natural Gas Corporation (Oil exploration and Production)

Power Grid Corporation of India (Power generation/Distribution)

Reliance Industries Limited (Conglomerate)

State Bank of India (Banking - Public)

Sun Pharmaceutical (Pharmaceuticals)

Tata Steel (Iron & Steel)

Tata Consultancy Services (IT Services & Consulting)

Tech Mahindra (IT Services & Consulting)

Titan Company (Diamond & Jewellery)

UltraTech Cement (Cement)

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