BSE 30 Companies

The SENSEX is the benchmark index of the Bombay Stock Exchange (BSE). It was started in 1986 to assess the performance of the Indian financial market. Like NIFTY , SENSEX stocks constitute 30 prominent stocks from varied sectors, which are actively traded in the stock exchange daily.

Sensex movements are used as an indicator of the market sentiments. An increase in the SENSEX value implies an increase in the price of most shares whereas, a fall indicates a decrease in the price of most shares.

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.

You can select the best stocks from the Sensex to invest in based on profitability, valuation or price parameters. However, using a mix of these criterias can give you better results.

For example, the most undervalued stocks based on the EV/EBITDA multiple currently are:

The best performing stocks amongst the BSE Sensex constituents in the past year are:

The stocks that have managed to clock the highest revenue growth in the past 5 years within the BSE SENSEX list are:

The stocks that have managed to clock the highest profit growth in the past 5 years within the BSE SENSEX list are:

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.