What is Sensex - Everything you need to know

The S&P BSE Sensex just the “Sensex” as it is popularly known, is an index comprising thirty stocks with the highest market capitalization (value of a company traded on the stock exchange). The index derived its name as a combination of the words Sensitivity and Index. Nifty is the primary benchmark index of the Bombay Stock Exchange (BSE) and was introduced in 1986. It is a well-diversified 30 companies index reflecting overall market conditions and is widely accepted as an index that reflects the conditions of the Indian economy.

How are the 30 stocks for Sensex selected?

There are certain eligibility criteria which a stock must fulfil in order to be considered for inclusion in the index. These are as follows:

  1. Quantitative Criteria:
    1. Market Capitalization: The Security should figure in the Top 100 companies listed by full market capitalization. The weight of each S&P BSE SENSEX® Security based on free float should be at least 0.5% of the Index. (Market Capitalization would be averaged for last six months)
    2. Trading Frequency: The Security should have been traded on each and every trading day for the last one year. Exception can be made for extreme reasons like Security suspension etc.
    3. Average Daily Trades: The Security should be among the Top 150 companies listed by average number of trades per day for the last one year.
    4. Average Daily Turnover: The Security should be among the Top 150 companies listed by average value of shares traded per day for the last one year.
    5. Listed History: The Security should have a listing history of at least one year on BSE.
  2. Qualitative Criteria:
    1. Track Record: In the opinion of the Committee, the company should have an acceptable track record.

 

What are the stocks currently on the list?

HDFC Bank Ltd.Hindustan Unilever Ltd.Power Grid Corporation of India Ltd
Reliance Industries Ltd.State Bank of IndiaSun Pharmaceutical Industries Ltd.
Housing Development Fin. Corp. Ltd.Maruti Suzuki India LimitedTech Mahindra Ltd.
ICICI Bank Ltd.Bajaj Finance Ltd.Oil & Natural Gas Corporation Ltd.
Infosys LimitedAsian Paints LimitedBajaj Auto Limited
Tata Consultancy Services Ltd.Indusind Bank Ltd.Hero MotoCorp Ltd.
ITC Ltd.Bharti Airtel Ltd.Tata Motors Ltd.
Kotak Mahindra Bank LimitedHCL Technologies Ltd.Tata Steel Ltd.
Larsen and Toubro Ltd.Mahindra & Mahindra Ltd.Vedanta Ltd.
Axis Bank Ltd.NTPC LimitedYes Bank Ltd.
Tata Motors Limited DVR

 

Top 10 weighted stocks on the Sensex

Sr. No.Company NameSectorWeightage
1HDFC Bank Ltd.Banks12.61%
2Reliance Industries Ltd.Petroleum Products11.21%
3Housing Development Fin. Corp. Ltd.Finance8.87%
4ICICI Bank Ltd.Banks7.18%
5Infosys LimitedSoftware6.20%
6Tata Consultancy Services Ltd.Software5.77%
7ITC Ltd.https://www.moneycontrol.com/india/stockpricequote/cigarettes/itc/ITCConsumer Non Durables5.31%
8Kotak Mahindra Bank LimitedBanks4.49%
9Larsen and Toubro Ltd.Construction Project4.34%
10Axis Bank Ltd.Banks4.06%

 

Sensex journey since 1995

 

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