BSE Sensex History & Components
What is the BSE Sensex
The BSE Sensex Index is the value-weighted average for the Bombay Stock Exchange. The Sensex is comprised of the 30 blue chip stocks from the Bombay Stock Exchange and is the equivalent to the Dow Jones in India. These top 30 stocks account for one-fifth of all the market capitalization on the Bombay Stock Exchange. Since these basket of stocks reflect the broader Indian Stock Market, the Sensex is recognized around the world as the key indicator for the health of the Indian economy.
History of the BSE Sensex
The Sensex started with a base value of 100 and tracking began for the index on April 1, 1979. The Sensex officially began being published to the world in April, 1984. The Sensex is the oldest index in India.
How is the Sensex Calculated
The BSE Sensex is calculated using the Free-float Market Capitalization Model. The market capitalization is determined by multiplying the stock by the numbers of outstanding shares. This calculation is performed for all 30 stocks and then divided by the Sensex Divisor. The Divisor is derived from the original base value of 100 for the Sensex, so the index can be tracked over time. The Sensex is calculated every 15 seconds and then published to investors around the world in real-time.
Below are the components of the Sensex as of September, 2008.
|DLF Universal Limited||Housing related||0.15|
|Hindalco Industries||Metal, Metal Products & Mining||0.70|
|Hindustan Lever Limited||FMCG||0.50|
|Jaiprakash Associates||Housing Related||0.60|
|Larsen & Toubro||Capital Goods||0.90|
|Mahindra & Mahindra Limited||Transport Equipments||0.80|
|Maruti Udyog||Transport Equipments||0.50|
|ONGC||Oil & Gas||0.20|
|Reliance Industries||Oil & Gas||0.50|
|Satyam Computer Services||Information Technology||0.95|
|State Bank of India||Finance||0.45|
|Sterlite Industries||Metal, Metal Products & Mining||0.40|
|Tata Consultancy Services||Information Technology||0.25|
|Tata Motors||Transport Equipments||0.60|
|Tata Steel||Metal, Metal Products & Mining||0.70|
BSE Sensex Chart Example
Below is the chart example of the BSE Sensex. Notice how the Sensex took a free fall from 14,215.33 to a low of 7,697.39 in three weeks as a result of the 2008 credit crisis.