BSE Sensex 30 Companies

Yes. The BSE SENSEX is a free-float weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange.

Significant benefits of investing in SENSEX top 30 companies include:

1. Better returns – A historical backtest on the top indices in India viz. the Nifty 50 and BSE Sensex, reveals that investing in the Sensex can return slightly higher returns than the Nifty 50. Keep in mind to choose a sensex based index fund with high liquidity.
2. Diversification – Investing in an index fund automatically extends you the benefit of portfolio diversification, thereby reducing portfolio risk.
3. Less expensive - Being a passively managed fund you are required to pay minimal fees. This essentially means lesser expenses to eat into your returns.

The BSE SENSEX is calculated by the ‘Free-Float Market Capitalisation’ method.

1. The market capitalization is determined by multiplying the price of the stocks with the number of shares issued by that company, for each of the 30 companies comprising the index.
2. The market capitalization is then multiplied to the free-float factor determined by the BSE to derive the free-float market capitalization.
3. The free-float market capitalization of the Index constituents is then divided by a number known as the Index Divisor. This index divisor is the sole link to the original base period value of the index. (For the Sensex, the base value period, it is 1978-79) This value provides for comparison of the index over a period of time

For example, if the days’ Market Capitalization based on the performance of the 30 key stocks is 8000000 and the base index of 1978-79 is 50000. The index divisor becomes 100/50000 and the Sensex index value equals 8000000 x 100/50000 = 16000 for that day.

You can invest in the Sensex through any of the sensex based index funds or ETFs. Choose a fund/ETF that has higher liquidity and a lower expense ratio as compared to the others.

Currently, the SBI ETF Sensex is the most.

S&P BSE 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 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.

F&O Segment: The base period of S&P BSE 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 S&P BSE 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 the original base period value of the S&P BSE SENSEX . It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of Securities etc. During market hours, prices of the index Securities, at which latest trades are executed, are used by the trading system to calcF & O Segment:ulate S&P BSE SENSEX every 15 seconds and disseminated in real time.