SENSEX is the short term for the words "Sensitive Index" and is associated with the Bombay (Mumbai) Stock Exchage (BSE).
The SENSEX was first formed on 1-1-1986 and used the market capitalization of the 30 most traded stocks of BSE. The base was 1979 and taken as 100. The 30 scrips of 1986 and no more the same - some have been removed while some have been added. At irregular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.
Today the Sensex constitutes of the following companies:
Company Name (Industry)
1. ACC (Cement - Major)
2. Bharti Airtel (Telecommunications - Service)
3. BHEL (Engineering - Heavy)
4. DLF (Construction & Contracting - Real Estate)
5. Grasim (Diversified)
6. HDFC Bank (Banks - Private Sector)
7. HDFC (Finance - Housing)
8. Hindalco (Aluminium)
9. HUL (Personal Care)
10. ICICI Bank (Banks - Private Sector)
11. Infosys (Computers - Software)
12. ITC (Cigarettes)
13. Jaiprakash Associates (Construction & Contracting - Civil)
14. Larsen & Toubro (Diversified)
15. Mahindra and Mahindra (Auto - Cars & Jeeps)
16. Maruti Suzuki (Auto - Cars & Jeeps)
17. NTPC (Power - Generation/Distribution)
18. ONGC (Oil Drilling And Exploration)
19. Ranbaxy Labs (Pharmaceuticals)
20. Reliance Communications (Telecommunications - Service)
21. Reliance Industries Limited (Diversified)
22. Reliance Infrastructure (Power - Generation/Distribution)
23. State Bank of India (Banks - Public Sector)
24. Sterlite Industries (Metals - Non Ferrous)
25. Sun Pharma (Pharmaceuticals)
26. Tata Motors (Auto - LCVs/HCVs)
27. Tata Power (Power - Generation/Distribution)
28. Tata Steel (Steel - Large)
29. TCS (Computers - Software)
30. Wipro (Computers - Software)
Click here for a history of Sensex companies.
How is the Sensex calculated?
Sensex is calculated using the "Free-float Market Capitalization" methodology. As per this 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.
The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.
The base period of Sensex is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of Sensex involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor.
The Divisor is the only link to the original base period value of the Sensex. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc.
The SENSEX was first formed on 1-1-1986 and used the market capitalization of the 30 most traded stocks of BSE. The base was 1979 and taken as 100. The 30 scrips of 1986 and no more the same - some have been removed while some have been added. At irregular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.
Today the Sensex constitutes of the following companies:
Company Name (Industry)
1. ACC (Cement - Major)
2. Bharti Airtel (Telecommunications - Service)
3. BHEL (Engineering - Heavy)
4. DLF (Construction & Contracting - Real Estate)
5. Grasim (Diversified)
6. HDFC Bank (Banks - Private Sector)
7. HDFC (Finance - Housing)
8. Hindalco (Aluminium)
9. HUL (Personal Care)
10. ICICI Bank (Banks - Private Sector)
11. Infosys (Computers - Software)
12. ITC (Cigarettes)
13. Jaiprakash Associates (Construction & Contracting - Civil)
14. Larsen & Toubro (Diversified)
15. Mahindra and Mahindra (Auto - Cars & Jeeps)
16. Maruti Suzuki (Auto - Cars & Jeeps)
17. NTPC (Power - Generation/Distribution)
18. ONGC (Oil Drilling And Exploration)
19. Ranbaxy Labs (Pharmaceuticals)
20. Reliance Communications (Telecommunications - Service)
21. Reliance Industries Limited (Diversified)
22. Reliance Infrastructure (Power - Generation/Distribution)
23. State Bank of India (Banks - Public Sector)
24. Sterlite Industries (Metals - Non Ferrous)
25. Sun Pharma (Pharmaceuticals)
26. Tata Motors (Auto - LCVs/HCVs)
27. Tata Power (Power - Generation/Distribution)
28. Tata Steel (Steel - Large)
29. TCS (Computers - Software)
30. Wipro (Computers - Software)
Click here for a history of Sensex companies.
How is the Sensex calculated?
Sensex is calculated using the "Free-float Market Capitalization" methodology. As per this 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.
The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.
The base period of Sensex is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of Sensex involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor.
The Divisor is the only link to the original base period value of the Sensex. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc.
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