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Sensex Calculation

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SENSEX

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WHAT IS SENSEX? SENSEX ➢The SENSEX (SENSitve-indEX) was introduced by the Bombay Stock Exchange on 1st January 1986. ➢It is one of the prominent stock market indexes in India. ➢The Sensex is designed to reflect the overall market sentiments. ➢It comprises of 30 stocks. ➢These 30 stocks are from large, well-established and financially sound companies from main sectors.

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HOW 30 STOCKS ARE SELECTED? ➢ LISTED HISTORY : THE SCRIP SHOULD HAVE A LISTING HISTORY OF AT LEAST 3 MONTHS AT BSE. EXCEPTION MAY BE CONSIDERED IF FULL MARKET CAPITALISATION OF A NEWLY LISTED COMPANY RANKS AMONG TOP 10 IN THE LIST OF BSE UNIVERSE. ➢ TRADING FREQUENCY : THE SCRIP SHOULD HAVE BEEN TRADED ON EACH AND EVERY TRADING DAY IN THE LAST THREE MONTHS AT BSE. ➢ FINAL RANK : THE SCRIP SHOULD FIGURE IN THE TOP 100 COMPANIES LISTED BY FINAL RANK. THE FINAL RANK IS ARIVED AT BY ASSIGNING 75% WEIGHTAGE TO THE RANK ON THE BASIS OF THREE-MONTH AVERAGE FULL MARKET CAPITALISATION AND 25% WEIGHTAGE TO THE LIQUIDITY RANK BASED ON THREE-MONTH AVERAGE DAILY TURNOVER AND THREE-MONTH AVERAGE IMPACT COST. Cont….

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➢ MARKET CAPITALISATION WEIGHTAGE: THE WEIGHTAGE OF EACH SCRIP IN SENSEX BASED ON THREE-MONTH AVERAGE FREE-FLOAT MARKET CAPITALISATION SHOULD BE ATLEAST 0.5% OF THE INDEX. ➢ INDUSTRY/ SECTOR REPRESENTATION: SCRIP SELECTION WOULD GENERALLY TAKE INTO ACCOUNT A BALANCED REPRESENTATION OF THE LISTED COMPANIES IN THE UNIVERSE OF BSE. ➢ TRACK RECORD : IN THE OPTION OF THE BSE INDEX COMMITTEE, THE COMPANY SHOULD HAVE AN ACCEPTABLE TRACK RECORD.

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