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
ACC	Housing Related	0.60
BHEL	Capital Goods	0.35
Bharti Airtel	Telecom	0.35
DLF Universal Limited	Housing related	0.15
Grasim Industries	Diversified	0.75
HDFC	Finance	0.85
HDFC Bank	Finance	0.85
Hindalco Industries	Metal, Metal Products & Mining	0.70
Hindustan Lever Limited	FMCG	0.50
ICICI Bank	Finance	1.00
Infosys	Information Technology	0.85
ITC Limited	FMCG	0.70
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
NTPC	Power	0.15
ONGC	Oil & Gas	0.20
Ranbaxy Laboratories	Healthcare	0.70
Reliance Communications	Telecom	0.35
Reliance Industries	Oil & Gas	0.50
Reliance Infrastructure	Power	0.65
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 Power	Power	0.70
Tata Steel	Metal, Metal Products & Mining	0.70
Wipro	Information Technology	0.20

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.