![]() The filtered list of constituents selected through Step 5 (which can be greater than 75 companies) is then ranked on absolute turnover (avg. 3 months) are selected as well as any additional companies that are in the top 75 based on full market capitalization (avg. Exceptions can be made for extreme reasons like scrip suspension etc.Ĭompanies that have reported revenue in the latest four quarters from its core activity are considered eligible.įrom the list of constituents selected through Steps 1-4, the top 75 companies based on free-float market capitalisation (avg. The scrip should have been traded on each and every trading day in the last three months at BSE. In the event that a company is listed on account of a merger / demerger / amalgamation, a minimum listing history is not required. An exception may be granted to one month, if the average free-float market capitalization of a newly listed company ranks in the top 10 of all companies listed at BSE. Listing History: The scrip should have a listing history of at least three months at BSE. (excluding companies classified in Z group, listed mutual funds, scrips suspended on the last day of the month prior to review date, scrips objected by the Surveillance department of the Exchange and those that are traded under permitted category) shall be considered eligible. The general guidelines for selection of constituents in SENSEX are as follows:Įquities of companies listed on Bombay Stock Exchange Ltd. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX on a continuous basis. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc. The Divisor is the only link to the original base period value of the SENSEX. The calculation of SENSEX involves dividing the free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. This is often indicated by the notation 1978-79=100. The base period of SENSEX is 1978-79 and the base value is 100 index points. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. SENSEX is calculated using the 'Free-float Market Capitalization' methodology, wherein, the level of index at any point of time reflects the free-float market value of 30 component stocks relative to a base period. Small wonder, the SENSEX has become one of the most prominent brands in the country. As the oldest index in the country, it provides the time series data over a fairly long period of time (from 1979 onwards). One can identify the booms and busts of the Indian equity market through SENSEX. SENSEX has captured all these happenings in the most judicious manner. More recently, real estate caught the fancy of the investors. In the late nineties, the Indian market witnessed a huge frenzy in the 'TMT' sectors. Right from early nineties, the stock market witnessed heightened activity in terms of various bull and bear runs. The growth of the equity market in India has been phenomenal in the present decade. The 'free-float market capitalization-weighted' methodology is a widely followed index construction methodology on which majority of global equity indices are based all major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology. Since September 1, 2003, SENSEX is being calculated on a free-float market capitalization methodology. It is scientifically designed and is based on globally accepted construction and review methodology. SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. The base year of SENSEX was taken as 1978-79. ![]() SENSEX, first compiled in 1986, was calculated on a 'Market Capitalization-Weighted' methodology of 30 component stocks representing large, well-established and financially sound companies across key sectors.
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