Last Updated on 1 month ago by Raj Kumar

What is Sensex?

Sensex is which is also know as S&P BSE Sensex is an Index that is created by BSE stock exchange which is the oldest stock exchange in India. It’s often found that many people generally measure the performance of stock market by checking the performance of Sensex and Nifty .

In this article we will discuss about what is Sensex and it’s details around it!

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What is Sensex Index?

The Sensex consist of 30 stocks which are part of the index. Like Sensex, BSE has lot of other indexes listed in the BSE stock exchange.

What is the history of Sensex?

When was Sensex launched? – The Sensex index was launched on 1st January 1986, how ever the index value was derived from  3rd April 1979 by back-tested mechanism. The Sensex Index consists of 30 stocks.

What is the criteria for the stocks to be part of Sensex?

There are few criteria for a stock to be part of BSE Sensex, they are

1. Stocks should be listed for minimum 6 months in BSE stock exchange
2. The stock should have traded for all the trading days for the last 6 months
3. If the stock has a DVR then the DVR aggregated with the company’s common stock and index construction is done based on the aggregated company
4. Stocks meeting above criteria then qualifies for the selection and then the top 75 companies out the list are identified based on their average six month float adjusted market capitalisation.
5. All companies meeting the eligibility factors are ranked again based on their average six month total market capitalisation. The top 75 are identified.
6. All companies identified based on steps 4 and 5 are then combined and sorted based on their annualised traded value. Companies with a cumulative annualised traded value greater than 98% are excluded.
7. The remaining companies are then sorted by average six-month float-adjusted market capitalisation. Companies with a weight of less than 0.5% are excluded.
8. The remaining companies from step 7 are then ranked based on their average six-month float adjusted market capitalisation, and are selected for index inclusion according to the following rules:

What is Sensex company list and their weightage

Below are the Sensex company list and their approximate weightage in 2021

Sensex Historical performance

Below picture depicts the historical performance of Sensex since 1980:-