BSE Sensex

From Freepedia

The BSE Sensex or BSE Sensitive Index is a value-weighted index composed of 30 stocks with the base April 1979 = 100. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. The set of companies in the index is essentially fixed. These companies account for around one-fifth of the market capitalization of the BSE.

The Sensex is generally regarded as the most popular and precise barometer of the Indian stock markets. It is the oldest stock market index currently in use.

The base value of the Sensex is 100 on April 1, 1979.

At irregular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.

The abbreviated form "Sensex" was coined by Deepak Mohoni around 1990 while writing market analysis columns for some of the business newspapers and magazines. It gained popularity over the next year or two.

The stock market has grown by more than seven times from June 1990 to today. Using information from April 1979 onwards, the long-run rate of return on the BSE Sensex can be estimated to be 0.52% per week (continuously compounded) with a standard deviation of 3.67%. This translates to 27% per annum, which translates to roughly 18% per annum after compensating for inflation.

Constituents

The BSE Sensex was last updated on September 27, 2004.

See also

External links

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