What Is Sensex
What Is Sensex?Are you confused with this term or you heard about it but do not have clear idea what is it and why all stock market investors talked about it so much.
BSE sensex is an Index listed in Bombay Stock Exchange, it is one the most popular index in Asia pacific and the oldest index in India. BSE sensex is introduced by Bombay stock exchange in Jan 1, 1986. With a base value taken in 100 points. It comprises of 30 major stocks like reliance inds Sbin, TATA steel, L&t, TATA motors, ONGC, ICICI Bank, Infosys, Jindal Steel and many more, and it help investors to give clear cut idea where all these stock moving either upwards or downwards. In simple word it describe the trend of the market.
Check out the Daily free share market tips on Indian stock market on SENSEX.
The list of company in BSE Sensex today keeps on changing by exchange from time to time, It all depends on the how particular company is performing and its financial results, Fundamentals are right or not and also the market market volatility and traded volumes are their or not and some other parameters. so accordingly exchanges shuffle the list.
Since long sensex was the only index listed in exchanges but in early 90`s National stock exchange of India introduces its index which is now commonly know a "Nifty" .
The earlier method using for calculating Sensex is the "total market capitalisation" method in this weights are assigned as per the size of the company. Bigger the size, big the weightage.
But after that in year 2003 BSE has change the method to "free float market capitalization" means that the company with a higher free float will have a higher weight in the sensex. Only those shares or float are used for calculations which are available for trading in the exchanges. Any restricted stock is not accepted under this method of calculation. Shares or float will get preference if they are held by govt., promoters and by strategic investors. This method is excepted across the other other financial markets.
The value of index keeps on changing during market hours as per the trade executed in index stock and gives the exact figure where the market is heading up or down.
List On 30 Shares constitute the BSE Sensex Index
|AXIS Bank||Bajaj Auto||BHEL||Bharti Airtel||Cipla Ltd|
|COAL (I)||Dr Reddys||GAIL||HDFC Ltd||HDFC BANK|
|Hero Moto.||Hindalco Inds||Hind Unilever||ICICI bank||Infy|
|ONGC||RIL||Sesa Sterlite||SBIN||Sun Pharma|
|TCS||TATA Motors||TATA Power||TATA Steel||Wipro Ltd|
Please note: BSE keeps on changing the list from time to time for latest list please visit Bombay Stock Exchange website.