The S&P BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index), also called the BSE 30 or simply the SENSEX is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange. The 30 component companies which are some of the largest and most actively traded stocks are representative of various industrial sectors of the Indian economy.
Published since 1 January 1986, the S&P BSE SENSEX is regarded as the pulse of the domestic stock markets in India. The base value of the S&P BSE SENSEX is taken as 100 on 1 April 1979 and its base year as 1978–79. On 25 July 2001 BSE launched DOLLEX-30, a dollar-linked version of S&P BSE SENSEX.
As of 25th September 2017, the full market capitalisation of S&P BSE SENSEX was about ₹54,637.0878 billion (US$852 billion) (37% of GDP) while its free-float market capitalisation was ₹30,094.2286 billion (US$469 billion). During 2008-12, Sensex 30 Index share of BSE market capitalisation fell from 49% to 25% due to the rise of sectoral indices like BSE PSU, Bankex, BSE-Teck, etc.
The term Sensex was coined by Deepak Mohoni, a stock market analyst. It is a portmanteau of the words Sensitive and Index.
The BSE has some reviews and modifies its composition to be sure it reflects current market conditions. The index is calculated based on a free float capitalisation method, a variation of the market capitalisation method. Instead of using a company’s outstanding shares it uses its float or shares that are readily available for trading. Free Floating capital implies total capitalization fewer Directors shareholding. As per free float capitalisation methodology, the level of index at any point of time reflects the free float market value of 30 component stocks relative to a base period.
The market capitalisation of a company is determined by multiplying the price of its stock by the number of shares issued by of corporate actions, replacement of scrips. The index has increased by over twenty-five times from June 1990 to the present. Using information from April 1979 onwards, the long-run rate of return on the S&P BSE SENSEX works out to be 18.6% per annum.
- 31,000, 26 May 2017- The SENSEX crossed record 31,000 level for the first time on 26 May 2017 and reached its peak of 31,074.07, before closing slightly lower at 31,028.21.
- 32,000, 13 July 2017 – The SENSEX closed at 32,037.38, for its first close above the 32,000 level, on 13 July 2017.
- 33,000, 25 October 2017 – The SENSEX closed at 33,042.50, for its first close above the 33,000 level.
- 34,000, 26 December 2017 – The SENSEX closed at 34,010.62, for its first close above the 34,000 level
- 35,000, 17 January 2018 – The SENSEX closed at 35,081.82, for its first close above the 35,000 level.
- 36,000, 23 January 2018 – The SENSEX closed at 36,139.98, for its first close above the 36,000 level.