SENSEX Full Form

What is Full Form of Sensex

Sensex denotes a stock exchange-sensitive index. It is also known as BSE-30. It is the oldest stock in the market. Its calculation is calculated by the total tradable shares of the company. It is a free-floating capitalization method to know the market position of the company. There are around a thousand companies listed under the BSE(Bombay Stock Exchange) company, but only thirty of them are observed while calculating the Sensex. Those companies are fundamentally strong, well established and have a strong economy, and are involved in major sectors of the economy and business. One can use Sensex to evaluate the company before investing in it and can also identify the financial strength of the particular company by looking at the Sensex.

This Story also Contains

1. What is Full Form of Sensex
2. History
3. Companies Included In Sensex
4. Advantages
5. How Is Sensex Calculated?
6. Bse VS Nse

History

BSE or Sensex is the first stock exchange in Asia, it was introduced in 1875. This was the first to get permanent recognition under the Securities Contract Regulation Act, of 1956. It has been an interesting journey for them for the past 143 years.

Companies Included In Sensex

• Lupin

• Tata Steel Limited

• Wipro Limited

• Tata Motors Limited

• State Bank of India

• Sun Pharmaceutical Industry Limited

• Tata Motors- Differential Voting Rights (DVR) Ordinary

• Tata Consultancy Services Limited

• Kotak Mahindra Bank Limited

• Mahindra and Mahindra Limited

• Maruti Suzuki India Limited

• Larsen and Toubro Limited

• Reliance Industries Limited

• NTPC(NationaThermal Power Corporation) Limited

• Power Grid Corporation of India Limited

• Oil and Natural Gas Corporation Limited

• Viola

• ITC(IndiaTobaccoCompany)Limited

• Infosys Limited

• ICICI( Industrial Credit and Investment Corporation of India) Bank Limited

• HDFC (Housing Development Finance Corporation) Limited Bank

• Hindustan Unilever Limited

• Hero MotorCorp Limited

• Housing Development Finance Corporation Limited

• Asian Paints Limited

• Bajaj Auto Limited

• Axis Bank Limited

• Bharti Airtel Limited

• Adani Ports and Special Economic Zone Limited

• Coal India Limited

• Reddys Laboratories Limited

Advantages

• Imposed with all legal supervision by the BSE rules and regulations for investors' safety.

• It can help in keeping knowledge of stocks.

• All information will be on time and as per guidelines.

• It enables enterprises to raise their market share.

How Is Sensex Calculated?

• Sensex is calculated using the free float market capitalization method.

• This method has two key components.

• Free float is the number of outstanding shares of a company that are open to trade.

• In this method, shares owned by the government, private shares or shares owned by promoters are ignored.

• That's the reason why the company's free float market capitalization is less than the actual market capitalization value.

Bse VS Nse

• BSE is India's oldest stock exchange which offers high-speed trading while NSE is the largest stock exchange with high-technology trading methods.

• NSE was a fully electronic stock exchange from the beginning while BSE switched to electronic trading from the year 1995.

• BSE ranks 10th in global stock exchange rankings while NSE stays at 11th rank.

• BSE has more than 5000 companies listed in it while NSE has more than 1600 companies listed in it.

• BSE was recognized in 1957 as a stock exchange while NSE was recognized in 1993.

• Mr Ashishkumar Chauhan is the CEO(Chief executive officer) and managing director of BSE while Mr Vikram Limaye is the Managing Director and CEO of NSE.