All about BSE India SENSEX, what is sensex
ALL ABOUT SENSEX, LAUNCH OF SENSEX….
For the premier Stock Exchange that pioneered the stock broking activity in India , 125 years of experience seem to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called “Bombay Stock Exchange Limited” by paying a princely amount of Re1.
Since then, the stock market in the country has passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market. Bombay Stock Exchange Limited (BSE) in 1986 came out with a Stock Index that subsequently became the barometer of the Indian Stock Market.
SENSEX, first compiled in 1986 was calculated on a “Market Capitalization-Weighted” methodology of 30 component stocks representing a sample of large, well-established and financially sound companies. The base year of SENSEX is 1978-79. The index is widely reported in both domestic and international markets through print as well as electronic media. SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. From September 2003, the SENSEX is calculated on a free-float marke capitalization methodology. The “free-float Market Capitalization-Weighted” methodology is a widely followed index construction methodology on which majority of global equity benchmarks are based.
The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs. More recently, the bourses in India witnessed a similar frenzy in the ‘TMT’ sectors. The SENSEX captured all these happenings in the most judicial manner. One can identify the booms and bust of the Indian equity market through SENSEX.
The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised of 100 stocks listed at five major stock exchanges in India at Mumbai, Calcutta , Delhi , Ahmedabad and Madras . The BSE National Index was renamed as BSE-100 Index from October 14, 1996 and since then it is calculated taking into consideration only the prices of stocks listed at BSE. The Exchange launched dollar-linked version of BSE-100 index i.e. Dollex-100 on May 22, 2006.
- All About Sensex, Launch of BSE Sensex
- What is Sensex in the stock market?
- What are the objectives of SENSEX?
- How to calculate BSE SENSEX?
- What is the beta of SENSEX scrips?
- SENSEX - Scrip selection criteria
- Maintenance of SENSEX
- How is the closing Index calculated?
- What are the criteria for selection and review of scrips for the SENSEX?
- Who selects these 30 stocks & How do they select these 30 stocks?
- Dollex series of BSE indices
- Book Building - About Book Building
- Definition of Free-float & Determining Free-float factors of companies
- Understanding Free-float Methodology & Its Major advantages
- Book Building - Glossary
- What are the BSE Sensex & the NSE Nifty?
- Technical Analysis of Indian stock market BSE Sensex Index
- How are adjustments for Bonus, Rights and newly issued Capital carried out in SENSEX?
- The Sensex story: From 1K to 18K
- The Sensex story: From 1K to 20K (Sensex from 1000 to 20000)
- BSE 100 Index
- BSE 200 Index
- BSE 500 Index
- Companies that form the NSE Nifty Index
- BSE TECk INDEX
- BSE BANKEX
Click here for more details about sensex: