BSE SENSEX

BSE SENSEX

What is Sensex?

Sensex is the prime index of Bombay Stock Exchange containing thirty(30) large stocks from various sectors to calculate the value of index from listed companies.
Sensex is the prime index ox Bombay Stock Exchange. Top 50 large companies Free Float Market Capital reflects in Sensex. BSE is the First stock exchange in Asia located in Bombay. Many world countries follows the sensex points as one of the popular benchmark index.

SENSEX Index Specifications

Sensex Data	Definition - Explaination
Name of the Exchange	Bombay Stock Exchange
Base Year	1978-79
Base Index Value	100
Date of Launch	01-01-1986
Method of calculation	Introduced on full market capitalization method and calculation method shifted to free-float market capitalization with effect from September 01, 2003.
Number of scrips	30
Index calculation frequency	Real Time, During trading hours.
Index calculation and Maintenance	The BSE Index Cell does the regular maintenance of the index within the broad index policy framework set by the BSE Index Committee.

Bse Sensex Index

Bse Sensex : SENSEX, first started in 1986, "Bse Sensex"is the leading equity index in India. SENSEX is a index follows “free-float” market capitalization weighted index of thirty stocks covering the Leading industry sectors in India. There are numerous "Exchange Traded Funds" ("ETF") and mutual funds benchmarking the SENSEX that are traded in India and overseas particularly in Asia. In addition, the Bombay Stock Exchange trades "Futures and Options" (F&O) on the SENSEX.

Bse Sensex Calculation Methodology

Sensex Calculation : BSE SENSEX is computed using the "Free-float Market Capitalization" methodology. The level of index value at any point of time reflects the free-float market value of 30 index stocks relative to a base period. The market capitalization of a company is determined by multiplying the current market price of its stock by the total number of shares issued by the company. The base period of SENSEX is 1978-79. The base value of SENSEX is 100 index points. This is often indicated by the notation 1978-79=100. During market hours, real time prices of the index scrips used by the trading system to calculate SENSEX on a continuous basis.

Free-float Methodology

Free-float Methodology : "Free-float market capitalization" takes into consideration only those shares issued by the company that are readily available for trading in the share market. It excludes promoters' holding, strategic holding, government holding and any other locked-in shares that will not come to the market for trading in the normal condition. In other words, the market capitalization of each company in a free-float index is reduced to its readily available shares in the market from total market capital.