Foundation | 1 January 1986 |
---|---|
Operator | Asia Index |
Exchanges | BSE |
Trading symbol | ^BSESN |
Constituents | 30 |
Type | Large cap |
Market cap |
|
Weighting method | Free-float market capitalisation |
Related indices |
|
Website | official website |
The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or simply SENSEX) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. The 30 constituent companies which are some of the largest and most actively traded stocks, are representative of 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. [2] [3] The base value of the SENSEX was taken as 100 on 1 April 1979 and its base year as 1978–79. On 25 July 2001 BSE launched DOLLEX-, a dollar-linked version of the SENSEX. [4]
The term Sensex was coined by Deepak Mohoni, a stock market analyst in 1989. [5] [6] BSE Sensitive Index then was at about 750 points. Sensex 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. Instead of using a company's outstanding shares it uses its float, or shares that are readily available for trading. Free Floating capital implies total capitalization less Directors shareholding. [7] As per free float capitalisation methodology, the level of index at any point of time reflects the free float market value of 30 constituent stocks relative to a base period. The market capitalisation of a company is determined by multiplying the price of its stock by the number of shares issued by corporate actions, replacement of scrips. The index has increased by over twenty five times from June 1990 to the present. Using information from April 1979 onwards, the long-run rate of return on the S&P BSE SENSEX works 18.6% per annum.
Company | Symbol | Ticker Number | Sector | Entry date |
---|---|---|---|---|
Adani Ports & SEZ | ADANIPORTS.BO | 532921 | Ports & Port services | 24 June 2024 [8] |
Asian Paints | ASIANPAINT.BO | 500820 | Paints | 21 December 2015 [9] |
Axis Bank | AXISBANK.BO | 532215 | Banking - Private | |
Bajaj Finance | BAJFINANCE.BO | 500034 | Finance (NBFC) | 24 December 2018 [10] |
Bajaj Finserv | BAJAJFINSV.BO | 532978 | Finance (Investment) | |
Bharti Airtel | BHARTIARTL.BO | 532454 | Telecommunications | |
HCLTech | HCLTECH.BO | 532281 | IT Services & Consulting | 24 December 2018 [10] |
HDFC Bank | HDFCBANK.BO | 500180 | Banking - Private | |
Hindustan Unilever | HINDUNILVR.BO | 500696 | FMCG | |
ICICI Bank | ICICIBANK.BO | 532174 | Banking - Private | |
IndusInd Bank | INDUSINDBK.BO | 532187 | Banking - Private | 18 December 2017 [11] |
Infosys | INFY.BO | 500209 | IT Services & Consulting | |
ITC | ITC.BO | 500875 | Cigarettes & FMCG | |
JSW Steel | JSWSTEEL.BO | 500228 | Steel | 13 July 2023 [12] |
Kotak Mahindra Bank | KOTAKBANK.BO | 500247 | Banking - Private | 19 June 2017 [13] |
Larsen & Toubro | LT.BO | 500510 | Engineering & Construction | |
Mahindra & Mahindra | M&M.BO | 500520 | Automobile | |
Maruti Suzuki | MARUTI.BO | 532500 | Automobile | |
Nestlé India | NESTLEIND.BO | 500790 | FMCG | 23 December 2019 [14] |
NTPC | NTPC.BO | 532555 | Power generation/Distribution | |
Power Grid | POWERGRID.BO | 532898 | Power generation/Distribution | 20 June 2016 [15] |
Reliance Industries | RELIANCE.BO | 500325 | Conglomerate | |
State Bank of India | SBIN.BO | 500112 | Banking - Public | |
Sun Pharma | SUNPHARMA.BO | 524715 | Pharmaceuticals | 8 August 2011 [16] |
Tata Consultancy Services | TCS.BO | 532540 | IT Services & Consulting | |
Tata Motors | TATAMOTORS.BO | 500570 | Automobile | |
Tata Steel | TATASTEEL.BO | 500470 | Steel | 21 June 2021 [17] |
Tech Mahindra | TECHM.BO | 532755 | IT Services & Consulting | |
Titan Company | TITAN.BO | 500114 | Diamond & Jewellery | 23 December 2019 [14] |
UltraTech Cement | ULTRACEMCO.BO | 532538 | Cement | 23 December 2019 [14] |
Category | All-time highs [30] | |
---|---|---|
Closing | 85,836.12 | Thursday, 26 September 2024 |
Intra-day | 85,978.25 | Friday, 27 September 2024 |
The following is a timeline on the rise of the SENSEX through Indian stock market history.
On 22 May 2006, the SENSEX plunged by 1,100 points during intra-day trading, leading to the suspension of trading for the first time since 17 May 2004. The volatility of the SENSEX had caused investors to lose ₹6 lakh crore (US$131 billion) within seven trading sessions. The then Finance Minister of India, P. Chidambaram, made an unscheduled press statement when trading was suspended to assure investors that nothing was wrong with the fundamentals of the economy, and advised retail investors to stay invested. When trading resumed after the reassurances of the Reserve Bank of India and the Securities and Exchange Board of India (SEBI), the SENSEX managed to move up 700 points, but still finished the session 457 points in the red. [62]
The SENSEX eventually recovered from the volatility, and on 16 October 2006, the SENSEX closed at an all-time high of 12,928.18 with an intra-day high of 12,953.76. This was a result of increased confidence in the economy and reports that India's manufacturing sector grew by 11.1% in August 2006.
On 23 July 2007, the SENSEX touched a new high of 15,733 points. On 27 July 2007 the SENSEX witnessed a huge decline because of selling by Foreign Institutional Investors and global cues to come back to 15,160 points by noon. Following global cues and heavy selling in the international markets, the BSE SENSEX fell by 615 points in a single day on 1 August 2007. [63]
On 16 October 2007, SEBI (Securities & Exchange Board of India) proposed curbs on participatory notes which accounted for roughly 50% of FII investment in 2007. SEBI was not happy with P-notes because it was not possible to know who owned the underlying securities, and hedge funds acting through P-notes might therefore cause volatility in the Indian markets.
However the proposals of SEBI were not clear and this led to a knee-jerk crash when the markets opened on the following day (17 October 2007). Within a minute of opening trade, the SENSEX crashed by 1,744 points or about 9% of its value – the biggest intra-day fall in Indian stock markets in absolute terms until then. This led to the automatic suspension of trade for one hour. Finance Minister P. Chidambaram issued clarifications, in the meantime, that the government was not against FIIs and was not immediately banning PNs. After the market opened at 10:55 am, the index staged a comeback and ended the day at 18715.82, down 336.04 from the last day's close.
However, this would not be the end of the volatility. The next day (18 October 2007), the SENSEX tumbled by 717.43 points – 3.83 per cent – to close at 17,998.39 points. The slide continued the next day (19 October 2007), when the SENSEX fell 438.41 points to settle at 17,559.98 to the end of the week, after touching the lowest level of that week at 17,226.18 during the day.
After detailed clarifications from the SEBI chief M. Damodaran regarding the new rules, the market made an 879-point gain on 23 October, thus signalling the end of the PN crisis.
On 18 May 2009, the SENSEX surged up 2,110.79 points to close at 14,285.21, from its previous closing of 12,174.42, for its largest single day rally. Less than a month later, on 4 June 2009, the SENSEX would cross the 15,000 mark.
However, the SENSEX remained volatile during the summer of 2009. The SENSEX plunged by 869.65 points on 6 July 2009, the day of Union Budget presentation in Parliament on concerns over high fiscal deficit. This was the biggest Budget-day loss for the index. [31] On 17 August 2009, the SENSEX lost 626.71 points.
Once again, the SENSEX would recover from the volatility. On 7 September 2009, the SENSEX crossed the 16,000 mark, closing at 16,016.32 points. The index would gain 3,000 points over the next 12 months, as the SENSEX crossed the 19,000 mark on 13 September 2010, closing at 19,208.33 points.
In the third week of January 2008, the SENSEX experienced huge falls along with other markets around the world. On 21 January 2008, the SENSEX saw its highest ever loss of 1,408 points at the end of the session. The SENSEX recovered to close at 17,605.40 after it tumbled to the day's low of 16,963.96, on high volatility as investors panicked following weak global cues amid fears of a recession in US.
The next day, the BSE SENSEX index went into a free fall. The index hit the lower circuit breaker in barely a minute after the markets opened at 10 am. Trading was suspended for an hour. On reopening at 10.55 am IST, the market saw its biggest intra-day fall when it hit a low of 15,332, down 2,273 points. However, after reassurance from the Finance Minister of India, the market bounced back to close at 16,730 with a loss of 875 points. [65]
Over the course of two days, the BSE SENSEX in India dropped from 19,013 on Monday morning to 16,730 by Tuesday evening or a two-day fall of 13.9%. [65] Less than a month later, on 11 February 2008, the SENSEX lost 833.98 points, when Reliance Power fell below its IPO price in its debut trade after a high-profile public offer. [31]
The free fall of the SENSEX accelerated in March 2008. The month started out with the Sensex losing 900.84 points on 3 March 2008, on concerns emanating from growing credit losses in US. This would be the first of four one-day falls of greater than 700 points during the month. On 13 March 2008, the SENSEX plummeted another 770.63 points on global economic jitters. [31]
The month ended with the SENSEX shedding 726.85 points on 31 March 2008, after heavy selling in blue-chip stocks on global economic fears.
The SENSEX dropped by 749.05 points on 7 January 2009, when the Satyam fraud came to light. [31]
The index crossed the historical mark of 30,000 after repo rate cut announcement by RBI. [66]
The index plummeted by over 1,624.51 points on 24 August 2015, the then worst one-day point plunge in the index's history. [67]
On 9 March 2020, Sensex tumbled down by 1941.67 points amid the fears of coronavirus pandemic and Yes Bank crisis. [68] This was the second worst single-day fall in the history, where the investors lost ₹6.50 lakh crores ($91 billion).[ citation needed ] While on 12 March 2020, the index plunged down by 2919.26 points, the second–worst fall in the history, ending in red to a 33-month low at 32,778.14. The fall wiped off ₹11.2 lakh crores wealth ($160 billion). [69]
On Friday, 13 March, trading was halted for 45 minutes for the first time in 12 years since January 2008 due to lower circuit. [70] Sensex touched a low of 29,687.52 down by 3090.62 points (or 9.43%). However, after the 45-minute halt, the index saw biggest intra-day recovery by 5,380 points to end up by 1325 points. [71]
Continuing the losing streak, wealth worth ₹14.22 lakh crore ($200 Billion) was erased on 23 March 2020 as BSE SENSEX lost 3,934.72 points to end at 25,981.24. [72]
As on 21 January 2021, Sensex has recovered to 50,167.71.[ citation needed ]
On the following dates, the SENSEX index suffered major single-day falls at close (of 430 or more points): [73]
S.No. | Date | Points | Reason |
---|---|---|---|
1 | 28 April 1992 | 570 [74] | |
2 | 17 May 2004 | 565 | |
3 | 15 May 2006 | 463 | |
4 | 18 May 2006 | 826 [75] | |
5 | 19 May 2006 | 453 | |
6 | 22 May 2006 | 457 | |
7 | 2 April 2007 | 617 | |
8 | 1 August 2007 | 615 | |
9 | 16 August 2007 | 642.70 | |
10 | 17 October 2007 | 717.43 | |
11 | 21 November 2007 | 678.18 | |
12 | 17 December 2007 | 769.48 | |
13 | 18 January 2008 | 687.82 | |
14 | 21 January 2008 | 1408.35 [76] | Due to the US subprime mortgage crisis. |
15 | 22 January 2008 | 875 | Due to the US subprime mortgage crisis. |
16 | 11 February 2008 | 833.98 | |
17 | 3 March 2008 | 900.84 | |
18 | 13 March 2008 | 770.63 | |
19 | 17 March 2008 | 951.03 [77] | |
20 | 31 March 2008 | 726.85 | |
21 | 27 June 2008 | 600 | |
22 | 15 September 2008 | 710 | |
23 | 6 October 2008 | 724.62 | |
24 | 10 October 2008 | 792.17 | |
25 | 24 October 2008 | 704 | |
26 | 7 January 2009 | 749.05 | |
27 | 6 July 2009 | 869.65 [78] | |
28 | 17 August 2009 | 626.71 | |
29 | 12 November 2010 | 432 | |
30 | 16 November 2010 | 444.55 | |
31 | 4 February 2011 | 441.92 | |
32 | 24 February 2011 | 545.92 | |
33 | 22 September 2011 | 704 [79] | |
34 | 27 February 2012 | 477.82 | |
35 | 13 May 2013 | 430.65 [80] | |
36 | 31 May 2013 | 455.10 | |
37 | 20 June 2013 | 526.41 [81] | |
38 | 6 August 2013 | 449.22 [82] | |
39 | 16 August 2013 | 769.41 | Due to depreciation of the Indian rupee. [83] [84] |
40 | 27 August 2013 | 590.05 [85] | |
41 | 3 September 2013 | 651.47 | |
42 | 18 November 2013 | 451.32 | |
43 | 8 July 2014 | 517.97 | |
44 | 16 December 2014 | 538.12 | |
45 | 6 January 2015 | 854.86 [86] | |
46 | 30 January 2015 | 498.82 | |
47 | 9 February 2015 | 490.52 | |
48 | 9 March 2015 | 604.17 | |
49 | 26 March 2015 | 654.25 | |
50 | 5 May 2015 | 722 | |
51 | 24 August 2015 | 1624.51 [87] | Driven by the meltdown in the Chinese stock market. [88] |
52 | 22 September 2015 | 541.14 [89] | |
53 | 4 January 2016 | 537.55 | |
54 | 7 January 2016 | 554.50 [90] | |
55 | 11 February 2016 | 807.07 [91] | |
56 | 11 November 2016 | 698.86 [92] | Driven by 2016 US Election Results. [93] |
57 | 2 February 2018 | 839.91 [94] | Driven by 2018 Union Budget of India. [95] |
58 | 4 October 2018 | 806.47 [96] | Panic fall, due to oil price increase and rupee fall against US Dollar. [97] |
59 | 5 October 2018 | 800.51 | Panic fall, due to oil price increase and rupee fall against US Dollar. [97] |
60 | 8 July 2019 | 792.82 [98] | Driven by Union Budget and global equity sell off. |
61 | 13 August 2019 | 624 [99] | |
62 | 22 August 2019 | 587.44 [100] | Due to concerns about slowing Indian economy. [100] |
62 | 6 January 2020 | 787.98 [101] | |
63 | 1 February 2020 | 987.96 [102] | Driven by 2020 Union Budget of India. |
64 | 28 February 2020 | 1448.37 [103] | Driven by coronavirus outbreak. |
65 | 6 March 2020 | 893.99 [104] | Due to global sell-off driven by coronavirus concerns. |
66 | 9 March 2020 | 1941.67 [105] | Due to coronavirus concerns. |
67 | 12 March 2020 | 2919.26 [106] | Due to coronavirus concerns. |
68 | 16 March 2020 | 2713.41 [107] | Due to coronavirus concerns. |
69 | 17 March 2020 | 810.98 [108] | Due to coronavirus concerns and fears of recession. |
70 | 18 March 2020 | 1709.58 [109] | Due to the COVID-19 pandemic. [110] |
71 | 19 March 2020 | 581.28 [111] | Due to the COVID-19 pandemic. |
72 | 23 March 2020 | 3934.72 [112] | Due to the COVID-19 pandemic and nationwide lockdown. |
73 | 1 April 2020 | 1203.18 [113] | Due to the COVID-19 pandemic. |
74 | 3 April 2020 | 674.36 [114] | Due to the COVID-19 pandemic. |
75 | 24 April 2020 | 535.86 [115] | Due to the COVID-19 pandemic. |
76 | 4 May 2020 | 2002.27 [116] | Due to the COVID-19 pandemic. |
77 | 14 May 2020 | 885.72 [117] | Due to the COVID-19 pandemic. |
78 | 18 May 2020 | 1068.75 [118] | Due to the COVID-19 pandemic. |
79 | 11 June 2020 | 708.68 [119] | Driven by global equity sell-off. [119] |
80 | 5 April 2021 | 708.69 [120] | Due to the second wave of coronavirus in India. [120] |
81 | 13 April 2021 | 1708 [121] | Due to second wave of coronavirus and lockdown threats. |
82 | 31 October 2021 | 677.77 [122] | Continuous selling by FIIs, dull global performance and mixed corporate earnings. |
83 | 24 February 2022 | 2702.15 [123] | Driven by Russian invasion of Ukraine |
84 | 19 May 2022 | 1416.30 [124] | Driven by inflation concerns |
85 | 4 June 2024 | 4389.73 [125] | Driven due to 2024 Lok Sabha election |
86 | 5 August 2024 | 2222.55 [126] [127] | The global sell-off was primarily driven by fears of a U.S. recession, weak U.S. unemployment data, geopolitical tensions, and the unwinding of the Yen trade. |
Sl. No. | Date | High | Reason |
---|---|---|---|
1 | 31 Oct 2019 | 40,392.22 | Continuous buying by foreign institutional investors (FIIs). Tax cut buzz. US Fed rate cut. US-China trade hopes. Corporate results being better than expected. [128] |
2 | 20 Nov 2019 | 40,816.38 | Trade lifted by buying in index heavyweights like Reliance Industries, Bharti Airtel, and ICICI Bank. [129] |
3 | 20 Dec 2019 | 41,809.96 | FII's inflows & gains by Tata Steel, SBI & Yes Bank [130] |
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