Index Specification:
Base Year: 1978-79
Base Index Value: 100
Date of Launch: January 1, 1986
Method of calculation: Launched on full market capitalisation method and effective September 1, 2003, calculation method shifted to free-float market capitalisation
Number of scrips: 30
Index calculation frequency: 15 seconds
SENSEX Calculation Methodology: SENSEX is calculated using the Free-float Market Capitalization methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization. The base period of SENSEX is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of SENSEX involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to theoriginal base period value of the SENSEX. 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. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time.
SENSEX - Scrip Selection Criteria: The general guidelines for selection of constituents in SENSEX are as follows:
1. Listing History: The scrip should have a listing history of at least 3 months at BSE. Minimum requirement of 3 months is reduced to one month, if full market capitalisation of a newly listed company ranks among top 10 in the list of BSE universe. In case, a company is listed on account of merger/ demerger/ amalgamation, minimum listing history would not be required.
2. Trading Frequency: The scrip should have been traded on each and every trading day in the last three months. Exceptions can be made for extreme reasons like scrip suspension etc.
3. Final Rank: The scrip should figure in the top 100 companies listed by final rank. The final rank is arrived 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 & three-month average impact cost.
4. Market Capitalization Weightage: The weightage of each scrip in SENSEX based on three-month average free-float market capitalisation should be at least 0.5% of the Index.
5. Industry Representation: Scrip selection would generally take into account a balanced representation of the listed companies in the universe of BSE.
6. Track Record: In the opinion of the Index Committee, the company should have an acceptable track record.
Index Review Frequency: The Index Committee meets every quarter to discuss index related issues. In case of a revision in the Index constituents, the announcement of the incoming and outgoing scrips is made six weeks in advance of the actual implementation of the revision of the Index.
Equity shares of the Companies are listed under the under mentioned Groups on the Exchange:
1) A Group
2) B1 Group
3) B2 Group
4) F Group (Fixed income securities)
5) G Group (Government securities group)
6) S Group (INDO NEXT)
7) T Group (based on Surveillance Action)
8) TS Group (based on Surveillance Action)
9) Z Group
Indices maintained by BSE
1) SENSEX Benchmark index of Indian capital market comprising of 30 scrips
2) BSE-100 Broad-based index comprising of 100 scrips
3) BSE-200 Broad-based index comprising of 200 scrips
4) BSE-500 Broad-based index comprising of 500 scrips
5) Dollex-30 Dollar linked version of SENSEX
6) Dollex-100 Dollar linked version of BSE-100 index
7) Dollex-200 Dollar linked version of BSE-200 index
8) BSE Mid-Cap Index tracks scrips that are categorised as mid-cap as per the criteria decided by BSE
9) BSE Small-Cap Index tracks scrips that are categorised as small-cap as per the criteria decided by BSE
10) BSE PSU Index tracks public sector undertaking listed at BSE where stage and/ or central govt. holds 51% or more shares of the company calculated on full market capitalisation method.
11) BSE Auto Index tracks companies classified under auto sector in BSE-500 index
12) BSE Bankex Index tracks companies classified under banking sector in BSE-500 index
13) BSE Capital Goods Index tracks companies classified under capital goods sector in BSE-500 index
14) BSE Consumer Durables Index tracks companies classified under consumer durables sector in BSE-500 index
15) BSE FMCG Index tracks companies classified under FMCG sector in BSE-500 index
16)BSE Healthcare Index tracks companies classified under healthcare sector in BSE-500 index
17) BSE Information Technology Index tracks companies classified under information technology sector in BSE-500 index
18) BSE Metal Index tracks companies classified under metal sector in BSE-500 index
19) BSE Oil & Gas Index tracks companies classified under oil & gas sector in BSE-500 index
20) BSE Realty Index tracks companies classified under realty sector in BSE-500 index
21) BSE TECk Index tracks companies classified under IT, telecom and media sectors in BSE 500 index