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.

    Sensex Components

    Below are the components of the Sensex as of September, 2008.

    Name  Sector  Adj. Factor  
    ACCHousing Related0.60
    BHELCapital Goods0.35
    Bharti AirtelTelecom0.35
    DLF Universal LimitedHousing related0.15
    Grasim IndustriesDiversified0.75
    HDFC BankFinance0.85
    Hindalco IndustriesMetal, Metal Products & Mining0.70
    Hindustan Lever LimitedFMCG0.50
    ICICI BankFinance1.00
    InfosysInformation Technology0.85
    ITC LimitedFMCG0.70
    Jaiprakash AssociatesHousing Related0.60
    Larsen & ToubroCapital Goods0.90
    Mahindra & Mahindra LimitedTransport Equipments0.80
    Maruti UdyogTransport Equipments0.50
    ONGCOil & Gas0.20
    Ranbaxy LaboratoriesHealthcare0.70
    Reliance CommunicationsTelecom0.35
    Reliance IndustriesOil & Gas0.50
    Reliance InfrastructurePower0.65
    Satyam Computer ServicesInformation Technology0.95
    State Bank of IndiaFinance0.45
    Sterlite IndustriesMetal, Metal Products & Mining0.40
    Tata Consultancy ServicesInformation Technology0.25
    Tata MotorsTransport Equipments0.60
    Tata PowerPower0.70
    Tata SteelMetal, Metal Products & Mining0.70
    WiproInformation Technology0.20

    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.
    BSE Sensex
    Tim Ord
    Ord Oracle

    Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...
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