India’s oldest bellwether index has completed forty years of ups and downs. Interestingly as it begins the fortieth year, the Sensex has scaled a new peak touching an all-time high of 39115.57. The Sensex is now hovering at 39056.65 Come Tuesday, Sensex was trading at 39,032.44 up by 160.57 points or 0.41% at around 1231 hours. The index rose to an intraday high of 39,058.80.
The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or simply the SENSEX) is a free-float market-weighted stock market index of 30 financially sound companies listed on Bombay Stock Exchange.
The 30 selected companies are one of the quickest stocks trading at the BSE. They representative the various industrial sectors of the Indian economy. Published since 1 January 1986, the S&P BSE SENSEX is regarded as the pulse of the domestic stock markets in India. The base value of the SENSEX was taken as 100 on 1 April 1979 and its base year as 1978–79.
The term Sensex was coined by Deepak Mohoni, a stock market analyst. It is a portmanteau of the words Sensitive and Index. The BSE has some reviews and modifies its composition to be sure it reflects current market conditions. The index is calculated based on a free float capitalisation method, a variation of the market capitalisation method. The index uses a company’s outstanding shares as its float, or shares that are readily available for trading.
On Monday, Sensex touched a new high of 39115.57-level. With this, Sensex has surged by nearly 18% in 1 year. On the same day last year, the Sensex was near 33,255-levels. Chauhan said,” Over the last 40 years, it has given CAGR of over 17% which is the highest returns of any asset class in India. It is a true reflection of the growth of India over all these years. If you look at the chart of Sensex since the beginning, you will be able to see that when India smiles Sensex smiles and when India cries, Sensex cries too. It is the witness and representation of India’s victories and India’s struggles. India’s hopes and India’s worries.”
@SENSEX_BSE base date is April 1,1979. On that day, it was set at100. Today it completed 40 years and coincidentally reached 39,000. If we take dividends in to account, on total return basis, it would be close to 56,000. Congratulations India for the stupendous growth! @BSEIndia
— Ashish Chauhan BSE (@ashishchauhan) April 1, 2019
Currently, the market cap of BSE listed companies are Rs 1,52,68,771.06 crore. It has some 4,13,57,794 registered investors. Speaking of the Sensex and its entire purpose, Chauhan added.” It is a measurement that shows India in its myriad true colors, every micro second. It is the symbol of India’s aspirations and will continue to guide the future generations as it has done in the past.”
Sensex has been climbing the peak lately and has made investors rich. The Sensex measures diverse industrial sectors. Chauhan adds, “It has incorporated new industries like IT and Pharma and Banking over these 40 years and shedded industries which didn’t do well. It is a picture of changing India and will continue to remain for time to come.”
