BSE Sensex

The Bombay Stock Exchange's stock market index, known as the BSE SENSEX, stands for "Stock Exchange Sensitive Index." The BSE SENSEX is scientifically designed and reviewed according to internationally accepted standards. The BSE SENSEX is a basket of 30 constituent stocks (companies) representing large and liquid companies. It was first compiled in 1986. The base year of BSE SENSEX is 1978-79, and the base value of SENSEX is 100.

The BSE SENSEX is considered to be the reflection of the entire stock market in India. The SENSEX is India's oldest index and a barometer of the Indian economy. Market research analysts use SENSEX to determine India's overall growth, industry development, and stock market trend.

The list of SENSEX companies is revised semi-annually, i.e. in December and June of each year. To be a part of the list of 30 SENSEX companies, they have to meet the following criteria:

1. The company should be listed on BSE (Bombay Stock Exchange)
2. A SENSEX company should be a large-cap to mega-cap stock
3. The stocks of the company should be liquid, i.e., the stock is traded on the stock exchanges frequently
4. The company should generate revenue from its core activities

The BSE SENSEX is India's oldest stock index, having been established in 1986. Deepak Mohoni, a stock market analyst, coined the term SENSEX. It's a combination of the words "sensitive" and "index." The index took just a few years to cross the 1000 mark in July 1990. Earlier, the methodology followed to calculate the index was based on weighted market capitalization. But, with effect from September 2003, the method changed to the free-float capitalization method. Under this method, the number of shares available for sale under a company calculates the index.

The market witnessed a boom after 2000 due to the onset of technological developments. In the same decade, in 2005, that BSE SENSEX reached 7000 points for the first time. The rapid growth continued, and the index crossed the 10000 marks in February 2006 and the 20000 marks in December 2007. Recently, in the year 2021, the BSE SENSEX index surpassed the historical mark of 50000 for the first time in February. The optimism in the index is continued since then and is expected to grow even more.

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  I-Sec is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  Investments in securities market are subject to market risks, read all the related documents carefully before investing. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents are solely for informational and educational purpose.