Sensex is an average of the closing or trading prices of 30 most actively traded scrips in Bombay Stock Exchange,BSE, one of the two leading stock exchanges in India.This average in known as index in finance terminology.Every stock exchange has such an index which intends to represent generally the direction in which the scrips in the exchange are moving and generally the exchange's reaction to the triggers in economic,financial and political scenes.
The index of NSE (National stock Exchange) is Nifty and NYSE (New York Stock Exchange) is Dow Jones.The formula for calculation of Sensex is based on free float capitalisation method.
Sensex = Free-float market capitalization of index constituents (30 nos)/ Base Market capitalization * Base Index Value.where ;
FFMC = Price of Stock * (No.of shares issued* Free Float Factor) ie No. of shares available for trading
Base Year = 1978-79Base Value = 100
How the scrips are selected ?
- No companies in Z group, listed mutual funds, suspended companies,those objected by the Surveillance Department of BSE Ltd. and those traded under a permitted category and SME category.
- Stocks listed for at least 3 months as on constructing date,
- For newly listed ones, if the average float market capitalization in top 10, then 1 month listng minimum.
- Where new listing due to a merger/demerger/amalgamation, no minimum listing period.
- To have been traded on every trading day at BSE during the 3 month considered.
- Have reported revenue in the last 4 quarters from core activities.
- ADANI PORTS
- ASIAN PAINT
- AXIS BANK
- BAJAJ AUTO
- BHARTI AIRTEL
- COAL INDIA
- DR REDDY
- HDFC
- HDFC BANK
- HERO MOTOR CORPORATION
- HINDUSTAN UNILEVER
- ICICI BANK
- INDUSIND BANK
- INFOSYS
- ITC
- KOTAK BANK
- L & T
- M & M
- MARUTI
- NTPC
- ONGC
- POWER GRID
- RELIANCE
- STATE BANK OF INDIA
- SUN PHARMA
- TATA MOTORS
- TATA STEEL
- TCS
- WIPRO
- YES BANK.