The 'BSE SENSEX' is a value-weighted index composed of 30 stocks and was started on January 1, 1986.

The Sensex is regarded as the pulse of the domestic stock markets in India. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies account for around fifty per cent of the market capitalization of the BSE. The base value of the sensex is 100 on April 1, 1979, and the base year of BSESENSEX is 1978-79. The BSE SENSEX consistes of the following companies: Bajaj Auto Limited, Bharti Airtel Ltd., Bharat Heavy Electricals Ltd., Cipla Ltd., DLF Ltd., HDFC, HDFC Bank Ltd., Hero Honda Motors Ltd., Hindalco Industries Ltd., Hindustan Unilever Ltd., ICICI Bank Ltd., Infosys Technologies Ltd., ITC Ltd., Jaiprakash Associates Ltd., Jindal Steel & Power Ltd., Larsen & Toubro Ltd., Mahindra & Mahindra Ltd., Maruti Suzuki India Ltd., NTPC Ltd., ONGC Ltd., Reliance Industries Ltd., Reliance Communications Ltd., Reliance Infrastructure Ltd., State Bank of India, Sterlite Industries (India) Ltd., Tata Motors Ltd., Tata Power Company Ltd., Tata Steel Ltd., Tata Consultancy Services Ltd., Wipro Ltd., [1] At regular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to be sure it reflects current market conditions. The index is calculated based on a free float capitalization method; a variation of the market cap method. Instead of using a company's outstanding shares it uses its float, or shares that are readily available for trading. The free-float method, therefore, does not include restricted stocks, such as those held by promoters, government and strategic investors.[2] Initially, the index was calculated based on the µfull market capitalization¶ method. However this was shifted to the free float method with effect from September 1, 2003. Globally, the free float market capitalization is regarded as the industry best practice. As per free float capitalization 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 its stock by the number of shares issued by the company. This Market capitalization is multiplied by a free float factor to determine the free float market capitalization. Free float factor is also referred as adjustment factor. Free float factor represent the percentage of shares that are readily available for trading. The Calculation of Sensex involves dividing the free float market capitalization of 30 companies in the index by a number called Index divisor.The Divisor is the only link to original base period value of the Sensex. It keeps the index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips, etc. The index has increased by over ten times from June 1990 to the present. Using information from April 1979 onwards, the long-run rate of return on the BSE Sensex works out to be 18.6% per annum, which translates to roughly 9% per annum after compensating for inflation.[3]

Contents

1992 .1 May 2006 o 1. y 1000. 1992 .4 January 2008 3 Companies in the Sensex 4 Sensex falls 5 References 6 External links [edit] Sensex milestones Here is a timeline on the rise of the Sensex through Indian stock market history.3 Effects of the Subprime crisis in the U. the Sensex crossed the 2. the Sensex crossed the 5.S.006. 1990 . March 30.On February 11.On March 30. 2000.On February 29.001 in the wake of a good monsoon and excellent corporate results.S o 1. 5000.1 May 2006 o 2. 1992.000-mark and closed at 4.020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh. 2000.000-mark as the Bharatiya Janata Party-led coalition won the majority in the 13th Lok Sabha election.On January 15. the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by Manmohan Singh.091 on the expectations of a liberal export-import policy. the Sensex crossed the 4. 1999. 6000. 1990.2 May 2009 o 1. July 25. January 15. 3000. 4000.On July 25. 1992 . the Sensex touched the four-digit figure for the first time and closed at 1.3 Participatory notes issue o 2. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling. 1992. February 29. October 11. 1992.4 Participatory notes issue o 1. 1999 . o 2.[hide] y y y y y y 1 Sensex milestones o 1.5 January 2008 2 Major crashes since 2000 o 2.000-mark and closed at 2.On October 8. 2000 .2 Effects of the subprime crisis in the U. y y y y y .000-mark and hit and all time high of 6. February 11. the information technology boom helped the Sensex to cross the 6.

The Sensex on September 19.y 7000. 14000. Reliance Energy. 2007 crossed 15. 16.36 and finally closed at 13. October 15. 2007 .000 points for the first time. 2006 .000. March 27.The Sensex on July 6. June 21. 2006 .000 and touched a peak of 12.000 mark for the first time. 2006 crossed 12. 2006 touched 10. 2006 . 12. July 6. February 7.The Sensex on September 26. y y y y y y y y y y y y .000 for the first time.000 points. 2007 crossed the 17. 2006.001 points during mid-session at the Bombay Stock Exchange for the first time. 2006 crossed 13. 2005. April 20. 2007 .004 points during mid-session at the Bombay Stock Exchange for the first time.000 and touched a peak of 11. it was on March 27.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.003 points during mid-session. 2007 .000.The Sensex on November 28.000. 8000.000. 2006 crossed 14. the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL. 18. 2007 crossed the 16.000. 2005. The Sensex finally closed above the 10. 2005 . 2006 that the Sensex first closed at over 11. 10.000-mark on February 7.The Sensex on April 20.000.000. 2005 .000.On June 20. December 9.On September 8. October 30. 19. 15. 2005 crossed 9000 to touch 9000. the Bombay Stock Exchange's benchmark 30-share index ± the Sensex . 2007 crossed the 19. 2006 crossed 11. September 19.The Sensex on March 21. 2005 . 11. However. October 9. 2007 crossed the 18.000.024.000 mark.crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.000 mark for the first time. 2007 .000 mark.The Sensex on October 15. December 5. 9000. 2006 . 17. 2006 . September 8.000.The Sensex on October 9.The Sensex on February 6. 2007 . It touched a peak of 13.000 mark for the first time.The Sensex on October 30. 13. This helped the Sensex crossed 7. Reliance Capital and IPCL made huge gains. September 26.039.26.The Sensex on December 5.

y 13.79 points from the previous closing of 12174. made an unscheduled press statement when trading was suspended to assure investors that nothing was wrong with the fundamentals of the economy. October 30. 2006 it touched a peak of 13. the Sensex plunged by 1100 points during intra-day trading.96 with highest peak in two years. This was a result of increased confidence in the economy and reports that India's manufacturing sector grew by 11.The Sensex on October 30. the Sensex closed at an all-time high of 12.1% in August 2006.000 mark for the first time. 21. Chidambaram. The Sensex eventually recovered from the volatility.The Sensex on January 8. still 450 points in the red. y y [edit] May 2006 On May 22. make runs. 2010 closes at 21. 2007.000.The Sensex on July 6.000.The Sensex on November 5. The Finance Minister of India. 2007 . It took 135 days to reach 13. 2009.000 from 12. Trading was open for that . 2008 . This rally is primarily due to the victory of the UPA in the 15th General elections. Sachin Tendulkar achieved the same mark (15000 runs in international cricket) around the same time. The volatility of the Sensex had caused investors to lose Rs 6 lakh crore (US$131 billion) within seven trading sessions. 2007 crossed the 20.500. and on October 16. leading to the suspension of trading for the first time since May 17. 14.y 20. 2006. and advised retail investors to stay invested. 2006. July 6. it took almost 7 month and 1 day to touch such a historic milestone. December 5. 2010 . And 124 days to reach 13. October 29. by being the first ever time that trade had been suspended for an increase in value. the sensex surged 2110.000 and still riding high at the Bombay Stock Exchange for the first time. 2006 . 2006 . 2006 crossed 13.000 and touched a peak of 14028 at 9. 2008 touched all time peak of 21078 before closing at 20873. the Sensex managed to move up 700 points. When trading resumed after the reassurances of the Reserve Bank of India and the Securities and Exchange Board of India (SEBI).36 & closed at 13. (A refrain at that time was. Coincidentally. "Sachin. P. so that the Sensex rises too!") y y [edit] May 2009 On May 18.42 this leading to the suspension of trade for the whole day. 2007 crossed another milestone and reached a magic figure of 15.000.928. 15.76.The Sensex on December 5.000.This event created history in Dalal Street.024.000.26. On October 30. Jan 08.The Sensex on October 29.039.000.000.58AM(IST) while opening for the day December 5. 2006.18 with an intra-day high of 12.[4] November 5. 2006 crossed 14.004.953. 2004.000 from 12.

2007. Following global cues and heavy selling in the international markets.The Sensex crossed the 19k mark for the first time on October 15. It was also during this record bull run that the Sensex for the first time zoomed ahead of the Nikkei of Japan. Initially 25 seconds and 30 seconds market reached upper freeze limit twice in that day itself. However the proposals of SEBI were not clear and this led to a knee-jerk crash when the markets opened on the following day (October 17. contributing 256 points.160 points by noon. 2007. the Sensex touched a new height of 15. It took just 4 days to reach from 18k to 19k.day only for 55 seconds.000 mark for the first time. It failed however to sustain the momentum and closed below 17000. The journey from 17k to 18k took just 8 trading sessions which is the third fastest 1000 point rise in the history of the sensex.000. y y Therefore the US Subprime crisis has a great effect even on INDIA. On July 27.000.2 trillion. 2007 crossed the 17. 2007 the Sensex witnessed a huge correction because of selling by Foreign Institutional Investors (FIIs) and global cues to come back to 15.733 points. October 15. 2007 crossed the 16. the Sensex crashed by 1744 points or about 9% of its value . 19.S On Monday July 23. This 788 point gain on October 9 was the second biggest single day absolute gains. Reliance group has been the main contributor in this bull run. October 9. Within a minute of opening trade. 2007).The Sensex crossed the 18k mark for the first time on October 9. SEBI (Securities & Exchange Board of India) proposed curbs on participatory notes which accounted for roughly 50% of FII investment in 2007. The Sensex closed above 17000 for the first time on the following day.000 mark and reached a historic peak of 16322 while closing. 2007. This is the fastest 1000 points rally ever and also the 640 point rally was the second highest single day rally in absolute terms. creating a record for the second fastest 1000 point gain in just 5 trading sessions. This made it a record 3000 point rally in 17 trading sessions overall. September 19. the BSE Sensex fell by 615 points in a single day on Wednesday August 1. and hedge funds acting through P-notes might therefore cause volatility in the Indian markets. The bull hits because of the rate cut of 50 bit/s in the discount rate by the Fed chief Ben Bernanke on September 26.280 at the end of day. 2007. [edit] Effects of the Subprime crisis in the U. 18.gold cross the psychological barrier. This also helped Mukesh Ambani's net worth to grow to over $50 billion or Rs. 2007. [edit] Participatory notes issue On October 16.The Sensex (Sensitivity Index) on September 19.000. 2007. SEBI was not happy with P-notes because it was not possible to know who owned the underlying securities. y 16. 2007.the biggest intra-day fall in Indian stock . The sensex closed at 18. 2007.

83 per cent ² to 17998. there were six 1. The journey of the last 10. that the government was not against FIIs and was not immediately banning PNs.The Sensex crossed the 20k mark for the first time with a massive 734. however not the end of the volatility. after reassurance from the Finance Minister of India.96% of its value on the intra day trade. The index hit the lower circuit breaker in barely a minute after the markets opened at 10 AM. October 17. This led to automatic suspension of trade for 1 hour.000 points was covered in just 869 sessions as against 7. thus signalling the end of the PN crisis. the market saw its biggest intra-day fall when it hit a low of 15. the market made a 879-point gain on October 23. after touching the lowest level of that week at 17226. Damodaran regarding the new rules.43 points ² 3.40 after it tumbled to the day's low of 16.9%.013 on Monday morning to 16. 2008 Business Standard y [edit] January 2008 In the third week of January 2008.273 points. y 20.730 with a loss of 875 points. the Sensex experienced huge falls along with other markets around the world. the Sensex tumbled by 717. down 336.000 mark from 1.297 sessions taken to touch the 10. After detailed clarifications from the SEBI chief M. 2007).975. On January 21. the BSE Sensex index went into a free fall.18 during the day. Finance Minister P.605. 2008.[5] Over the course of two days. However.408 points at the end of the session. the market bounced back to close at 16.04 from the last day's close. following extremely negative global financial indications in US and other countries.5 point gain but closed below the 20k mark. Sensex had gone past the 20K mark.markets in absolute terms till then. down 2. 2008 .07. The slide continued the next day when the Sensex fell 438.[5] y 9.39. This was. the BSE Sensex in India dropped from 19.82.000.96. Trading was suspended for an hour. October 24. 8701. Chidambaram issued clarifications. the 3rd highest loss for a one day period in its history y [edit] Major crashes since 2000 . October 29.55 AM IST. in the meantime. The next day. the index staged a comeback and ended the day at 18715.98 at the end of the week.Sensex crashes below the psychological 5 figure mark of 10K.000 levels. the Sensex saw its highest ever loss of 1. 2008 lost 10. January 8.963.332. Exactly one year back in October 2007. It took 11 days to reach from 19k to 20k.000-point rallies for the Sensex. on high volatility as investors panicked following weak global cues amid fears of a recession in the US. 2007.000. 21.730 by Tuesday evening or a two day fall of 13. On reopening at 10.41 points to settle at 17559. The Sensex recovered to close at 17. After the market opened at 10:55 AM. The next day (October 18. In 2007 alone.

the Sensex touched a new high of 15. On July 23. in the meantime. After the market opened at 10:55 AM.the biggest intra-day fall in Indian stock markets in absolute terms till then. The volatility of the Sensex had caused investors to lose Rs 6 lakh crore ($131 billion) within seven trading sessions. and advised retail investors to stay invested.160 points by noon.04 from the last day's close. 2007. 2007 the Sensex witnessed a huge correction because of selling by Foreign Institutional Investors and global cues to come back to 15. The Sensex eventually recovered from the volatility. 2006. made an unscheduled press statement when trading was suspended to assure investors that nothing was wrong with the fundamentals of the economy. .39. the Sensex managed to move up 700 points.76. SEBI was not happy with P-notes because it was not possible to know who owned the underlying securities[6]. After detailed clarifications from the SEBI chief M.1% in August 2006. 2006. This was a result of increased confidence in the economy and reports that India's manufacturing sector grew by 11. after touching the lowest level of that week at 17226. and on October 16. the BSE Sensex fell by 615 points in a single day on August 1.43 points ² 3.41 points to settle at 17559. On July 27.953. Chidambaram issued clarifications. [edit] Participatory notes issue On October 16. However the proposals of SEBI were not clear and this led to a knee-jerk crash when the markets opened on the following day (October 17.83 per cent ² to 17998. down 336. Following global cues and heavy selling in the international markets.[edit] May 2006 On May 22. still 450 points in the red. the index staged a comeback and ended the day at 18715. thus signalling the end of the PN crisis. 2007. SEBI (Securities & Exchange Board of India) proposed curbs on participatory notes which accounted for roughly 50% of FII investment in 2007.82. Within a minute of opening trade. P.928. the market made a 879-point gain on October 23. This led to automatic suspension of trade for 1 hour. the Sensex plunged by 1100 points during intra-day trading. 2007). and hedge funds acting through P-notes might therefore cause volatility in the Indian markets[7]. Finance Minister P.18 with an intra-day high of 12.18 during the day.98 at the end of the week. The next day (October 18. When trading resumed after the reassurances of the Reserve Bank of India and the Securities and Exchange Board of India (SEBI). the Sensex tumbled by 717. The Finance Minister of India. Chidambaram. 2007. the Sensex crashed by 1744 points or about 9% of its value . The slide continued the next day when the Sensex fell 438.S. Damodaran regarding the new rules. 2007). 2004. the Sensex closed at an all-time high of 12. leading to the suspension of trading for the first time since May 17. however not the end of the volatility.733 points. This was. [edit] Effects of the subprime crisis in the U. that the government was not against FIIs and was not immediately banning PNs.

50 0.25 0.75 2.96. the market bounced back to close at 16. 2010) Lifetime highest 3 rises in history (highest rise was in 2009 when second time upa government won the election) Code 500410 500103 532454 532868 500300 500010 500180 500182 500440 500696 532174 500209 500875 532532 Name ACC BHEL Bharti Airtel DLF Universal Limited Grasim Industries HDFC HDFC Bank Hero Honda Motors Ltd.9%. down 2.85 0.[edit] January 2008 In the third week of January 2008. Factor 0.605.86 10.[5] [edit] Companies in the Sensex List of BSE Sensex companies provides the full list of companies that have been part of the BSE Sensex since its inception in 1986 (baselined to 1979). the market saw its biggest intra-day fall when it hit a low of 15.40 after it tumbled to the day's low of 16. the BSE Sensex index went into a free fall.50 1.5 5.35 0.408 points at the end of the session.70 0.03 1.90 0. the BSE Sensex in India dropped from 19.963.26 3 1.75 0.25 Housing Related Capital Goods Telecom Housing related Diversified Finance Finance Transport Equipments Metal. 2008.00 0. the Sensex experienced huge falls along with other markets around the world. on high volatility as investors panicked following weak global cues amid fears of a recession in the US.013 on Monday morning to 16.55 0.99 1. Sector Adj. the Sensex saw its highest ever loss of 1. However. On January 21.55 Weight in Index(%) 0. The index hit the lower circuit breaker in barely a minute after the markets opened at 10 AM.[5] Over the course of two days. after reassurance from the Finance Minister of India. The next day.730 with a loss of 875 points.43 1.21 5.02 1.35 0.7 0.08 7. (as of Feb 26.55 AM IST. The Sensex recovered to close at 17. On reopening at 10.77 3.26 4. Trading was suspended for an hour.332.Metal Products & Hindalco Industries Ltd.273 points.85 0.730 by Tuesday evening or a two day fall of 13. Mining Hindustan Lever Limited FMCG ICICI Bank Finance Infosys Information Technology ITC Limited FMCG Jaiprakash Associates Housing Related .

98 points . and Mining Healthcare Information Technology Transport Equipments Power Metal. 2008. Jaiprakash Associates Ltd replaced Bajaj Auto Ltd on March 14.87 0.50 0.61 DLF replaced Dr.92 12. 3. Reddy's Lab on November 19.833.03 3.15 0. January 21. 4.85 1.61 1.857 points February 11. 2008.35 0.70 0. 2008 --. 2. 2009 Cipla to replace Sun Pharma from May 3.94 1.45 0.15 0.19 4.03 points July 6.951. Sun Pharmaceutical Industries replaced Satyam Computer Services on January 8.40 0. replaced Ranbaxy on June 29. 2007. Sterlite Industries replaced Ambuja Cements on July 28.70 0.35 points Oct 24. 2008 --.65 0.63 points March 17. on July 28. 5.03 2.75 0. 2009 Hero Honda Motors Ltd. 2008 --.50 0.66 1.90 0.20 0.15 0. Metal Products & Mining Information Technology 0.408.870 points January 22.71 1. Tata Power Company replaced Cipla Ltd. 2008---1070.1. 2009 --.20 6.57 2.71 2. 2010 Grasim replaced JSPL in 2010 [edit] Sensex falls Some major single-day falls of the Sensex have occurred on the following dates [1]: 1.45 0.63 2. 2008 --.500510 Larsen & Toubro Mahindra & Mahindra 500520 Limited 532500 Maruti Suzuki 532541 NIIT Technologies 532555 NTPC 500304 NIIT 500312 ONGC 532712 Reliance Communications 500325 Reliance Industries 500390 Reliance Infrastructure 500112 State Bank of India 500900 Sterlite Industries Sun Pharmaceutical Industries 532540 Tata Consultancy Services 500570 Tata Motors 500400 Tata Power 524715 500470 Tata Steel 507685 Wipro y y y y y y y y Capital Goods Transport Equipments Transport Equipments Information Technology Power Information Technology Oil & Gas Telecom Oil & Gas Power Finance Metal. 6.39 1.03 2. Metal Products.03 3.88 1.55 0. 2008.25 0.

November 21.687.545.48 points 11. January 7.826 points 8.10 points 9. June 27. November 19.726. March 13. 2010 --. October 10. 2008 --.770.63 points 10.00 points 16.432 Points 23. February 24. December 17.626. September 15. 2007 --.85 points 13.724.00 points 21. October 17. May 18. October 6.05 points 12. 2008 --. 2010 --.345. November 16. 2008 --.43 points 15.62 points 14.71 points 20.7. 2008 --.18 points 18.92 Points 25. 2007 --. 2009 --.769.717.441. March 31.678. January 18. 2006 --. 2007 --.749. August 17. February 04.70 points 19. August 16. 2007 --. 2011 --.55 Points 24.800.444. 2007 --.20 Points . 2009 --. 2007 --.600. 2011 --.92 points 22. 2008 --.710.82 points 17. 2010 --. November 12.642.