What is Sensex?
Sensex simply means sensitive index or sensitive index. In India, the two major stock exchanges under it are Mumbai Stock Exchange (Bombay Stock Exchange or BSE) and NSE (National Stock Exchange or NSE). It is commonly known for BSE.
You must have often read or seen the word Sensex on TV or in newspapers. Sometimes you see that Sensex has gone up so many points today and sometimes you see that Sensex has fallen so many points today.
SENSEX the term was introduced by Deepak Mohani. This word is made up of the words sensitive and index. This means that it is a sensory index. Sensex is the BenchMark index of our Indian Stock Market, which tells the rise and fall of the shares listed in BSE (Bombay Stock Exchange). Through this we get information about the performance of the 30 largest companies listed in it.
Talking about the Sensex, it is the oldest stock market index in India, which was started in 1986.
Sensex which is a stock market index and its most important job is to keep watching the price of all the shares of listed companies in the stock market and then after a day’s work give us an average value so that we can get listed in the stock market. It is easy to get information about the rise and fall in the prices of the shares of the companies.
Bombay Stock Exchange (BSE), which is the oldest stock exchange in India, has a total of 30 major Indian companies. If these companies are seen according to the market capitalization, then they are very big, it is currently 37% of the total Indian GDP.
These companies work in a way to set the trend of the Indian market. And in simple words, the index made to measure the prices of shares of big companies of India, which keeps an eye on the increasing and decreasing prices of the shares of these companies, is called Sensex.
Sensex top 15 Companies:-
15 companies included in the Sensex were included for the first time in 1986, all these companies are very strong financially and also very big in terms of market cap. The demand for the shares of these companies always remains in the stock market.
Such companies are called “blue chip” companies. A total of 31 companies are included in the Sensex of BSE i.e. Bombay Stock Exchange. The list of companies listed in BSE Sensex is as follows
1)Titan Company Ltd:-
Titan Company Ltd. (Titan), a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO), commenced its operations in 1984 under the name Titan Watches Limited. Titan is the fifth largest integrated own brand watch manufacturer in the world. Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories. Titan is widely known for transforming the watch and jewellery industry in India and for shaping India’s retail market by pioneering experiential retail. The Company continues to grow and set new standards for innovation and quality with each new offering.
2) Asian Paints:-
Asian Paints has come a long way since its small beginnings in 1942. It was set up as a partnership firm by four friends who were willing to take on the world’s biggest, most famous paint companies operating in India at that time. Over the course of 25 years, Asian Paints became a corporate force and India’s leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1967. Today, it is double the size of any other paint company in India.
3) Axis Bank Ltd:-
Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The share holding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.
4) Bajaj Auto Ltd:-
The Bajaj group’s flagship company, Bajaj Auto, is ranked as the world’s third largest motorcycle manufacturer and its largest three wheeler & quadricycle manufacturer. The Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia.
In 2007, Bajaj Auto acquired a 14% stake in KTM that has since grown to 48%. This partnership catalysed Bajaj Auto’s endeavour to democratise motorcycle racing in India. The company today exclusively manufactures Duke range of KTM bikes and exports them worldwide.
5) Bharti Airtel Ltd:-
Bharti Airtel Limited is domiciled and incorporated in India as a public limited company with its shares being listed on the National Stock Exchange and the BSE. The Company is principally engaged in provision of telecommunication services in India. The company provides telecom services under wireless and fixed line technology, national and international long distance connectivity and Digital TV; and complete integrated telecom solutions to enterprise customers. All these services are rendered under a unified brand ‘airtel’. The company also owns Tower Infrastructure pertaining to telecom operations through its subsidiary and joint venture entity.
6) HDFC Bank Ltd:-
HDFC Bank Ltd. is one of India’s leading private banks and was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994. HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January 1995.
7) Bajaj Finserv Ltd:-
The company is a Core Investment Company (CIC) under the regulations of the Reserve Bank of India (RBI), not requiring registration with RBI. BFS and BFL adopted the Indian Accounting Standards (Ind AS) from 1 April 2018. Hence, the standalone and consolidated results of BFS for FY2019 are compliant with Ind AS. The financials for FY2018 have been restated to be Ind AS compliant and are, therefore, comparable.
8) ICICI Bank Ltd:-
ICICI Bank Ltd. is a leading private sector bank in India. ICICI Bank was originally promoted in 1994 by ICICI Limited. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. Until the late 1980s, ICICI primarily focused its activities on project finance, providing long-term funds to a variety of industrial projects. With the liberalization of the financial sector in India in the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services provider that, along with its subsidiaries and other group companies, offered a wide variety of products and services.
9)Tata Steel Ltd:-
Tata Steel Limited is a public limited Company incorporated in India with its registered office in Mumbai, Maharashtra, India. The Company is listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). Tata Steel was established in India as Asia’s first integrated private steel company in 1907. Today, the company is among the leading global steel companies.
10) Tech Mahindra Ltd:-
Tech Mahindra, part of the eminent Mahindra Group, is a leading global enabler of digital transformation, consulting and business re-engineering services and solutions. The company represent the bold, new, disruptive digital era, offering innovative and customer-centric services and solutions to integrate technology with businesses more meaningfully and innovatively. Its core operation has been built around the credo ‘Connected World. Connected Experiences.’ The company’s solutions help clients integrate their platforms across a wide range of technologies to deliver tangible business value to their stakeholders.
NTPC is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. Since then it has established itself as the dominant power major with presence in the entire value chain of the power generation business. From fossil fuels it has forayed into generating electricity via hydro, nuclear and renewable energy sources. This foray will play a major role in lowering its carbon footprint by reducing green house gas emissions.
12) HCL Technologies Ltd:-
HCL Technologies Ltd. is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age. HCL also takes pride in its many diversity, social responsibility, sustainability, and education initiatives. Through its worldwide network of R&D facilities and co-innovation labs, global delivery capabilities, HCL delivers holistic services across industry verticals to leading enterprises.
13) Nestle India Ltd :-
After India’s independence in 1947, the economic policies of the Indian Government emphasised the need for local production. NESTLÉ responded to India’s aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted NESTLÉ to develop the milk economy. Progress in Moga required the introduction of NESTLE’s Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans.
14) Hindustan Unilever Ltd :-
Hindustan Unilever Ltd. (HUL) is India’s largest Fast Moving Consumer Goods Company and its Head Office in Mumbai. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With several brands spanning many distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India.
15) Larsen & Toubro Ltd:-
Together, Holck-Larsen and Toubro, founded the partnership firm of L&T in 1938, which was converted into a limited company on February 7, 1946. Today, this has metamorphosed into one of India’s biggest success stories. The company has grown from humble origins to a large conglomerate spanning engineering and construction. ECC was conceived as Engineering Construction Corporation Limited in April 1944 and was incorporated as wholly owned subsidiary of Larsen & Toubro Limited. L&T’s founders Holck – Larsen and Toubro laid the foundation for ECC.
At this time in the Indian market, in a way, the rule of these companies runs. All these companies are major companies in their respective sectors and each company represents its sector in a way in the Sensex.
Sensex vs nifty 50 :-
Sensex is an index of Bombay (Mumbai) Stock Exchange while Nifty is an index of National Stock Exchange. 30 companies are included in the Sensex, while 50 companies are included in the Nifty. The base year of Sensex is 1978-79, while the base year of Nifty is 1995. The base value of Sensex is 100, while the base value of Nifty is 1000.
What is Sensex?
Sensex is the benchmark index of Bombay Stock Exchange (BSE). That is why it is also called BSE Sensex. The word Sensex is made up of Sensitive and Index. In Hindi some people also call it sensory index. It was first adopted in 1986 and it shows the volatility of 30 companies in 13 different sectors. Changes in these stocks cause fluctuations in the Sensex. Sensex is calculated using free float method.
What is Nifty 50?
The Nifty 50 of the National Stock Exchange is also a major market indicator. The word Nifty is derived from the combination of National and Fifty. As per the name, this index includes 50 Indian companies from 14 sectors. Thus it is more diversified than BSE. Like BSE, it tracks the market performance of large cap companies. It was launched in 1996 and is calculated on the basis of free float market capitalization.
Difference between Sensex and Nifty 50:-
1. Sensex was started in 1986 while Nifty started in 1994.
2. Sensex is an index of Bombay (Mumbai) Stock Exchange while Nifty is an index of National Stock Exchange.
3. 30 companies are included in the Sensex, while 50 companies are included in the Nifty.
4. The base year of Sensex is 1978-79, while the base year of Nifty is 1995.
5. The base value of Sensex is 100, while the base value of Nifty is 1000.1