List of Companies in the BSE SENSEX 30
The S&P BSE SENSEX, also known as the S&P Bombay Stock Exchange Sensitive Index or just SENSEX for short, is a flagship index representing the performance benchmark of the Indian equity market. It consists of 30 well-established and financially stable companies listed on the Bombay Stock Exchange (BSE).
How Was the SENSEX Formed?
The origins of the SENSEX date back to 1986 when the BSE developed two benchmark indices - the BSE National Index and BSE-100 index. These captured the overall performance of companies listed at the exchange. In January 1986, S&P Bombay Stock Exchange Sensitive Index or SENSEX came into existence as a more accurate reflection of the Indian stock market.
The SENSEX is designed to capture the movement and trading behavior of 30 large, liquid and financially sound companies across key sectors. It serves as the benchmark index for the Indian capital market.
The SENSEX Over the Years
Over the past few decades, SENSEX has become one of the leading indices serving as India’s equity market benchmark.
- In 1990, the BSE switched all index computation to free-float methodology from full-market cap to reflect only stocks that trade freely for investors.
- In 1994, the computation frequency moved to real-time basis driving efficiency and transparency.
- Numerous revisions took place over the years to the index constituents to reflect the changing dynamics of the market.
- In 2003, growth in trading volumes and market cap led to BSE partnering with S&P Dow Jones Indices to advise on maintenance methodologies.
- Today, with over 4000 listed companies in BSE across market cap segments, SENSEX continues to be the bellwether index of India.
Significance for Investors
The SENSEX is widely tracked by investors to analyze market trends and make informed investment decisions.
Some key aspects making it crucial for market participants include:
- It is calculated in real-time reflecting price movements by the minute.
- Displays financial health and trading activity of leading bluechip companies.
- High market penetration and draw from reputed companies commanding over 60% market capitalization.
- Serves as the underlying index for index funds, ETFs and index-linked financial products providing diversified exposure at low costs for retail investors.
- Wide acceptance amongst foreign investors to measure India's equity market performance and make asset allocation calls.
By tracking SENSEX performance over time, investors get a snapshot of the overall market sentiment and returns generated relative to other asset classes guiding their investment strategies.
Composition of the Index
The SENSEX represents a handpicked selection of 30 component stocks, carefully chosen to depict the overall health of the Indian economy. Here are some key parameters for a company's inclusion:
Market Capitalization: Companies must have large market capitalization indicating strong business financials and investors interest. Market cap ranking helps determine weight within the index.
Trading Frequency: High trading volume and frequency signals an active stock with good liquidity for investors to easily trade the share.
Industry Representation: Companies span various major industries to create a diversified index representing vital sectors of the economy.
The index committee carries out periodic reviews, typically bi-annually around June and December, to incorporate changes in the economic landscape and maintain continuity of the index. Occasional changes outside the review period are also carried out when needed to account for corporate actions like mergers or any radical changes demanding immediate realignment.
Here is the latest list of 30 companies constituting the SENSEX index as of January 2024:
| Company Name | Industry |
|---|---|
| Reliance Industries Ltd (RIL) | Oil & Gas |
| Tata Consultancy Services (TCS) | IT |
| HDFC Bank | Banking & Financial Services |
| Infosys | IT |
| ICICI Bank | Banking & Financial Services |
| HDFC Ltd | Financial Services |
| ITC Ltd | FMCG |
| Kotak Mahindra Bank | Banking & Financial Services |
| Larsen & Toubro Ltd (L&T) | Construction & Engineering |
| State Bank of India (SBI) | Banking & Financial Services |
| Bajaj Finance | Financial Services |
| Axis Bank | Banking & Financial Services |
| Hindustan Unilever Ltd (HUL) | FMCG |
| Mahindra & Mahindra (M&M) | Automobiles |
| Nestle India | FMCG |
| Asian Paints | Chemicals |
| Maruti Suzuki India Ltd | Automobiles |
| Titan Company Ltd | Consumer Goods |
| Bharti Airtel | Telecom |
| Sun Pharmaceutical Industries Ltd | Pharma |
| NTPC | Energy |
| Wipro Ltd | IT |
| Tech Mahindra Ltd | IT |
| Power Grid Corporation of India | Energy |
| IndusInd Bank | Banking & Financial Services |
| Dr Reddy's Laboratories Ltd | Pharma |
| Tata Steel Ltd | Metals |
| UltraTech Cement Ltd | Cement & Construction |
| Bajaj Finserv | Financial services |
Index Calculation Methodology
There are elaborate mechanisms involved in terms of capturing real-time price information, calculating the index values, managing corporate actions such as dividends, rights issues, stock splits etc. and publishing the index values displayed by financial information sources across markets.
But in simple terms, the key steps are:
1. Price Index Calculation
This uses the free-float market capitalization methodology defined as:
Index Value = Current Market Value of Index / Base Market Capital of Index Base Index Value*
Here market value fluctuates based on the share price of underlying stocks while the base values are fixed.
2. Adjusting for Corporate Actions
The wielding factors are adjusted to eliminate any share price distortions resulting from corporate actions.
3. Dissemination
The SENSEX values are calculated and published continuously during market hours, widely reported by media and market data platforms.
With robust tracking, management and publishing protocols, SENSEX aims to capture market movements effectively and provide the investment community with a reliable benchmark.
Top 10 scrips in BSE SENSEX by index weightage
1. HDFC Bank Ltd
2. Reliance Industries Ltd
3. Infosys Ltd
4. ICICI Bank Ltd
5. L&T
6. Tata Consultancy Services Ltd
7. Kotak Mahindra Bank Ltd
8. Axis Bank Ltd
9. Bharti Airtel
10. ITC Ltd
Frequently Asked Questions
How Many Companies are Listed on the BSE?
As of January 2024, there are over 5,000 companies listed on the Bombay Stock Exchange across various market segments from large caps to small caps. However, the SENSEX represents only the top 30 blue chip companies.
How Many Companies are There in the BSE Sensex Index?
There are 30 companies currently comprising the BSE SENSEX index as of January 2024. The index committee periodically reviews the list and makes changes to ensure it represents the top large cap players across major sectors.
What is the Full Form of SENSEX?
The full form of SENSEX is S&P BSE Sensitive Index. It indicates that it is a market sensitive index created by Asia Index Private Ltd, which is a partnership of BSE and S&P Dow Jones Indices.
How is the Weightage Decided for Companies in the BSE Sensex?
The weightage of companies in SENSEX is determined based on their market capitalization value. Companies with higher market cap are given higher weightage. For example Reliance Industries has the highest weightage while Bajaj Finserv has the lowest.
How Frequently is the List of Companies in Sensex Changed?
The index maintenance sub-committee meets on a periodic basis to review the companies listed on SENSEX. Components can be added or removed based on factors like trading frequency, market caps and sector representation to ensure the index reflects the market.
In summary, the SENSEX, representing 30 of India's leading publicly-traded companies, serves as the country's premier stock market index providing a snapshot of equity market performance crucial for investors in directing their capital.
0 Comments