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BSE Sensex Index
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The S&P BSE Sensex index, commonly known as Sensex is a standard index of the Bombay Stock Exchange (BSE). It was founded in 1986 and is India’s oldest stock index. But what is stock index? It is a way of measuring the changes in the stock market. It also tells a trader about the price movements and also the market sentiments.
The BSE Sensex stocks comprise of 30 companies that are indeed the most actively-traded ones on BSE.
In simple words, the BSE Sensex index is a gauge that measures the Indian economy and is used by analysts/investors to monitor the growth, development, and even downfall of certain industries as well as the Indian economy.
BSE is the pioneer of India’s stockbroking industry which has had its share of good and bad periods. As already mentioned, it (BSE Sensex) was established in 1986, and before this (till the 80s) India did not have any scale to measure the ups and downs of its stock market.
Also Check: Nifty and Sensex to know the difference.
Therefore, when the stock exchange of Mumbai came out, it became the barometer of the stock market of India.
Sensex Index
The BSE Sensex and its methodology are globally accepted and the 30 companies listed under it are both large and liquid.
The composition of the Sensex index is reviewed every year in June and December. Also, the base year of the BSE Sensex is 1978 to 1979 and its base value is 100. Besides, the Sensex value is not only reported in the domestic market but also in international markets via print and electronic media.
Sensex Index Calculation
The BSE Sensex has been calculated using the “free-float market capitalization” method since September 2003. Before that, the “full market capitalization” method was used.
The free-float method is globally accepted and is also used by popular index providers namely – Dow Jones, MSCI, FTSE, S&P, and STOXX. The relevance and accuracy of BSE Sensex across Indian as well as the international market is its wide acceptance.
As per the free-float method, the level of the Sensex index (at a given point of time) indicates the “free-float market value” of the stocks of the 30 companies (for that given time).
The Sensex index is calculated by the following formula:
Sensex Index = The free-float market capitalization of the 30 BSE companies ÷ The index divisor.
The latest trade prices of the index scrips are used by the trading system to calculate and disseminate the Sensex in real-time.
A “Dollar” version of Sensex and historical data is also calculated by the BSE. This is known as “dollex-30”.
On 13 March 2014, the Sensex hit its highest value of 22,000 points.
The latest Sensex Index (as of 15th May 2020) is 31,097.73. This was 0.081% lower than the previous day. This value is updated every day and can be easily viewed on the BSE Sensex web page. Moreover, one who wishes to monitor the previous data (day-wise, year-wise, hour-wise) can do so by on the same web page.
BSE Sensex Index Fund
The following table shows the list of the Sensex index funds:
| BSE Sensex Index | ||||
| Scheme | Type | Minimum Investment (in ₹) | Minimum SIP Investment (in ₹) | Net Asset Value (NAV) (in ₹) |
| HDFC Index Fund-Sensex(G) | Open-ended | 5,000 | 1,000 | 276.03 |
| LIC MF Index Fund-Sensex Plan(D) | Open-ended | 5,000 | 1,000 | 19.84 |
| LIC MF Index Fund-Sensex Plan(G) | Open-ended | 5,000 | 1,000 | 57.89 |
| Tata Index Fund-Sensex Plan(G) | Open-ended | 5,000 | 1,000 | 77.01 |
| Nippon India Index Fund - Sensex Plan(G) | Open-ended | 5,000 | 1,000 | 15.34 |
| Nippon India Index Fund - Sensex Plan(QD) | Open-ended | 5,000 | 1,000 | 12.63 |
| Nippon India Index Fund - Sensex Plan(HD) | Open-ended | 5,000 | 1,000 | 12.63 |
| Nippon India Index Fund - Sensex Plan(AD) | Open-ended | 5,000 | 1,000 | 12.63 |
| ICICI Pru Sensex Index Fund(G) | Open-ended | 5,000 | 1,000 | 9.75 |
| ICICI Pru Sensex Index Fund(D) | Open-ended | 5,000 | 1,000 | 9.75 |
That’s all for this blog and we hope that it helped. Happy investing!
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