The Sensex is the main index of BSE and it is India’s oldest index. BSE (Bombay Stock Exchange) is a stock exchange company in India. The term ‘Sensex’ has been derived from 2 words: ‘sensitive’ and ‘index’. This term was given by Deepak Mohini and it was launched on January 1, 1986.
The Sensex is a group of 30 stocks belonging to India’s biggest and richest companies. It represents the financial health of the country and serves as a hub for investors across the country.
So, it is a stock market, giving a comprehensive impression of the status of different sectors of the economy.
Objectives of Sensex
The main objective of the Sensex is to gauge the direction in which the market is heading. It also helps to trade in equity, mutual funds and derivatives etc.
All companies listed in Sensex
TCS stands for Tata Consultancy Services and it is a huge company with many branches across the globe. The share price of TCS is usually above 3000 Rs as a result. But it is relatively safe to invest in them. Their stocks never falter much.
Reliance Industries needs no introduction. It is akin to a business empire. Their stocks are also very safe to invest in.
- Tata Steel-
The legacy of Tata is several decades old. Typically, large firms are usually profitable and attract investments from a variety of investors.
ITC is a magnificent brand. It manufactures several grocery products and also owns a group of luxury hotels. ITC’s share price is typically around 350 rupees. So, it is quite economical too. It is also listed on the BSE.
Infosys Limited is an Indian multinational information technology company that provides business consulting, information technology and outsourcing services. The company was founded in Pune and is headquartered in Bangalore. Infosys Ltd quote is equal to 1623.250 INR at 2022-11-29.
- HDFC Bank
The Housing Development Finance Corporation Limited or HDFC was among the first financial institutions in India to receive “in principle” approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The share price of any stock is volatile and keeps changing throughout the day owing to different factors. HDFC Bank’s share price is ₹1,597.85 as of 30 Nov ’22.
NTPC Limited is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. It does carry debt. Its share price is ₹170.15 as of 30 November 22.
ICICI Bank is India’s largest private sector bank by consolidated assets. ICICI Bank Limited was incorporated in the year 1994 as a part of the ICICI Group under the name ICICI Banking Corporation Limited.
HCL Tech is an Indian multinational information technology services and consulting company headquartered in Noida, Uttar Pradesh. It is a subsidiary of HCL Enterprises.
State Bank of India is a major public sector bank in India. The government owns the majority of its shares. It is a safe option and the stock price of SBI is roughly around 550 Rs.
- Axis Bank
Axis Bank Limited, formerly known as UTI Bank, is an Indian banking and financial services company headquartered in Mumbai, Maharashtra.
- Bharti Airtel
Bharti Airtel, incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 495606.42 crore) operating in the Telecommunications sector.
- Hindustan Unilever
Hindustan Unilever Limited is a consumer goods company headquartered in Bombay, India. It is a subsidiary of Unilever, a British company. Its products include foods, beverages, cleaning agents, personal care products, water purifiers and other fast-moving consumer goods
- Sun Pharma
Sun Pharma, India’s largest drug maker, said it is focused on expanding reach, gaining market share across therapeutic segments and improving overall salesforce productivity. This is because it wants to outperform industry growth in the domestic formulation business.
- Maruti Suzuki
Maruti Suzuki India, India’s largest carmaker in terms of market share, its total sales during the month rose 14.4 percent year-on-year (YoY) to 1.59 lakh units compared to 1.39 lakh units in the same month last fiscal.
- Kotak Mahindra Bank
- Tech Mahindra
- Sun Pharma
- UltraTech Cement
- Bajaj Finserv
The Titan brand stands true to the meaning of the term ‘Titan’. It is a well-known and popular shopping brand for watches, perfumes etc. the share price ranges around 2700 rs.
- Bajaj Auto
- IndusInd Bank
- Ultra Tech Cement-
It is a top player in the cement industry. It has a healthy balance sheet and a big market share too.
- Larsen & Toubro-
It is a huge construction company, taking building projects worth even hundreds of crores. The price of a share keeps varying, depending on several factors. The price of the share usually ranges between rs.1700-1900.
How to calculate Sensex?
We often get to hear or see the term Sensex around us. It is related to the stock market and shares. But, have you ever thought about how it is calculated? How does it work? What is the basic formula behind Sensex calculation? Don’t worry! We got you covered. We often hear, Sensex went up or crashed by some points. Let us see how these points are calculated.
The formula of Sensex is:
Sensex= (total free float market capitalization/ base market capitalization) * Base period Index value
To calculate the free float market capitalization, the following formula is used:
Free float market capitalization= Market Capitalization * Free Float Factor
The free Float factor refers to the percentage of shares issued, which are available for trade by common people.
How to undertake BSE Sensex trade?
The first and foremost thing required to trade in shares is to create a Demat account. The Demat account contains shares electronically. It helps to sell and purchase securities online. One important requirement to trade via a Demat account is that the person must have a bank account and pan card.
The help of stockbrokers can be taken for opening a Demat account and a trading account. While a Demat account acts as a storehouse for electronic shares, the trading account is used to buy or sell in the stock market. Account opening charges can be discussed with the stockbroker beforehand. Then, the brokerage charges should also be checked. It includes the charges which the broker will take on every stock market transaction.
The following details are required for opening a Demat account:
Email Id, Date of Birth, PAN No., Subscription plan, address, OTP for verification etc.
All these details are to be filled in the form before submitting it. Then, one can log in to their accounts and add money to them. Details regarding stocks of different companies can be checked and analyzed. The money can be invested accordingly.
Trading in Sensex is very safe these days. A T-PIN authentication system is used. It is a one-time pin generated to undertake a particular trade. Its verification is important to proceed with the transaction.
With more developments and innovation, the process of trading in the stock market has become very easy. All necessary information is easily available online.
One does not need to overthink before starting to invest in the stock market. The process is very transparent and simple these days. As far as the money requirement is concerned, the prices of shares vary greatly. Some are as cheap as Rs. 20, while others can be as costly as Rs. 60,000. Therefore, one can also start investing with only a few pennies in one pocket.
Selection procedure for Sensex
There are several factors responsible for the selection. The size and turnover of the company also influence the selection. The health of the balance sheet of a company also matters. The company’s market share also creates much impact. The profitability of the company is also taken into account while deciding whether it should be listed in BSE or not.
Latest update on Sensex
Gautam Adani minted over 1600 crores every day and doubled his wealth in one year. Multibagger chemical stock turns 1 lakh rupees to 2 crores in five years.
Yes, the Bank share price has reached a 16- month high. Investors can reconsider it now.
Sensex is a very interesting area for research, analysis, and investment. One needs to carefully look at all nitty-gritty before making healthy investments in BSE Sensex.