What is Sensex ?

by khalid on 28/05/2011 · 10 comments

The “Sensex” is an index of Bonbay Stock Exchange. Now if you confuse about index, then simply it is an indicator. By knowing this number the investors can have an idea about the price movement of stocks at that particular moment. BSE Sensex (acronym of Sensitive Index) is also known as BSE 30. It represents the 30 largest and most actively traded stocks registered at the Bombay Stock Exchange and representative of various industrial sectors of the Indian economy. Daily Sensex rates of closing are very important for the analysts who deal with Indian Shares markets including BSE and NSE.

The Bombay Stock Exchange (BSE) is situated at Mumbai like National Stock Exchange (NSE) is in Delhi. The market capitalisation of SENSEX is about Rs 29,733 billion (42.34% of market capitalization of BSE). There are other stock exchanges in India like the Calcutta Stock Exchange, Kanpur Stock Exchange etc. but the most popular are BSE and NSE only. Most of the stock trading in the country is done though these two.

List of SENSEX (BSE 30) Companies :–
1. ACC
2. BHEL
3. Bharti Airtel
4. DLF
5. Grasim
6. HDFC
7. HDFC Bank
8. Hindalco
9. Hindustan Uni Lever
10. ICICI Bank
11. Infosys
12. ITC
13. Jaiprakash Associate
14. Larsen & Toubro
15. Mahindra & Mahindra
16. Maruti Udyog
17. NTPC
18. ONGC
19. Ranbaxy Laboratories
20. Reliance Communications
21. Reliance Industries
22. Reliance Infrastructure
23. State Bank of India
24. Sterlite Industries
25. Sun Pharmaceutical
26. Tata Consultancy Services
27. Tata Motors
28. Tata Power
29. Tata Steel
30. Wipro

(The graph of SENSEX from July 1997 to March 2011)

Here is a timeline on the rise of the SENSEX through Indian stock market history.

1000 – On July 25, 1990, the SENSEX touched the four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.

2000 – On January 15, 1992, the SENSEX crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.

3000 – On February 29, 1992, the SENSEX surged past the 3000 mark in the wake of the market-friendly Budget announced by Manmohan Singh.

4000 – On March 30, 1992, the SENSEX crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and SENSEX witnessed unabated selling.

5000 – On October 8, 1999, the SENSEX crossed the 5,000-mark as the Bharatiya Janata Party-led coalition won the majority in the 13th Lok Sabha election.

6000 – On February 11, 2000, the information technology boom helped the SENSEX to cross the 6,000-mark and hit and all time high of 6,006.

7000 – On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital and IPCL made huge gains. This helped the SENSEX crossed 7,000 points for the first time.

8000 – On September 8, 2005, the Bombay Stock Exchange’s benchmark 30-share index – the SENSEX – crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000 – The SENSEX on November 28, 2005 crossed 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.

10,000 – The SENSEX on February 6, 2006 touched 10,003 points during mid-session. The SENSEX finally closed above the 10,000-mark on February 7, 2006.

11,000 – The SENSEX on March 21, 2006 crossed 11,000 and touched a peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the SENSEX first closed at over 11,000 points.

12,000 – The SENSEX on April 20, 2006 crossed 12,000 and touched a peak of 12,004 points during mid-session at the Bombay Stock Exchange for the first time.

13,000 – The SENSEX on October 30, 2006 crossed 13,000 for the first time. It touched a peak of 13,039.36 and finally closed at 13,024.26.

14000 – The SENSEX on December 5, 2006 crossed 14,000.

15,000 – The SENSEX on July 6, 2007 crossed 15,000 mark.

16,000 – The SENSEX on September 19, 2007 crossed the 16,000 mark.

17,000 – The SENSEX on September 26, 2007 crossed the 17,000 mark for the first time.

18,000 – The SENSEX on October 9, 2007 crossed the 18,000 mark for the first time.

19,000 – The SENSEX on October 15, 2007 crossed the 19,000 mark for the first time.

20,000 – The SENSEX on October 29, 2007 crossed the 20,000 mark for the first time.

21,000 – The SENSEX on January 8, 2008 touched all time peak of 21078 before closing at 20873.

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