#Sensex 30 companies list

[ayush27]

HISTORY OF BSE (Bombay Stock Exchange)

The Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia and one of the largest in the world. It was established in 1875 as "The Native Share & Stock Brokers Association" and was later renamed as the Bombay Stock Exchange.

The BSE began as a small group of brokers trading under a banyan tree outside the Town Hall in Mumbai. Over the years, it grew in size and significance, becoming the hub of the Indian stock market. In 1957, the BSE became the first stock exchange in India to be recognized by the government.

The BSE was initially a manual stock exchange, with trades being recorded by hand and communicated via runners and telegrams. In the late 1980s, the BSE shifted to an electronic trading platform, making it one of the first exchanges in the world to do so.

In 1994, the BSE launched the S&P BSE SENSEX, which is a market index that tracks the performance of the 30 largest and most liquid companies listed on the exchange. The SENSEX has since become the benchmark index for the Indian stock market, reflecting the overall performance of the market.

Today, the BSE has over 5,000 listed companies and is the largest stock exchange in India by market capitalization. It is also the first exchange in India to obtain recognition as a stock exchange from the Government of India under the Securities Contracts (Regulation) Act, 1956.

In recent years, the BSE has focused on expanding its global reach and increasing its technology offerings. It has established several international offices and has developed a range of technology-driven products and services to support the growing needs of the market.

Overall, the BSE has played a crucial role in the development of the Indian economy and remains a key player in the global financial landscape.

In the Next Article We know about Why A country Need Stock exchange and what are the role of stock market in indian Economy

Comment if You have any questions

[zebu-helan]

What Are The Indices In The Stock Market?

An investor can use a stock market index to gauge the performance of a market, such as the Bombay Stock Exchange or the National Stock Exchange, or a sector, such as the energy, infrastructure, or real estate sectors. The two most prominent stock market indices in India are the SENSEX and NIFTY. Indian investors can monitor how the index value changes over time and use it as a benchmark to determine how well their own portfolios are performing.

Investors now refer to the stock market as having indexes for various areas of the market that do not necessarily move in lockstep. Because there would be no need for multiple stock market indices if they did. You may make sense of the daily changes on the Indian market by knowing how stock market indexes are created and how they fluctuate.

The SENSEX S&P BSE (commonly known as the BSE 30 or SENSEX) was the first stock market index for stocks. It was founded in 1986. It is composed of shares from 30 well-known and financially stable BSE-listed companies. These businesses are representative of the major industrial sectors of the Indian economy.

How to Calculate SENSEX

The SENSEX has adopted the market capitalization weighted system, which assigns weights to companies depending on their size. The weight increases as the size increases.

It is now believed that the overall market share was 100 points when the index was created. This displays the percentage change in a logical manner. So, if the market capitalization rises by 10%, the index rises by 10% as well, from 9 to 10.

Assume there is only one stock on the market. Assume that the stock is now trading at 200 and that its fundamental value is 100. If the stock is worth 260 tomorrow, it has increased by 30%. As a result, the index will rise 30 points from 100 to 130. If the stock price falls from 260 to 208, the loss is 20%. The SENSEX will be revised from 130 to 104 to reflect the decline.

CNX NIFTY S&P (also known as NIFTY 50 or NIFTY) The National Stock Exchange has 50 shares of NIFTY, which was founded in 1996. It provides investors with access to the Indian market through a single portfolio and encompasses 24 various segments of the market.

NIFTY computation

The same algorithm used by the Bombay Stock Exchange to calculate the SENSEX is also used to calculate the NIFTY. However, there are three significant differences:

The NIFTY index is comprised of 50 equities that are actively traded on the NSE (SENSEX is calculated on 30)

Each sector has its own index on both the SENSEX and the NIFTY. This makes it easy for investors to keep track of market fluctuations on a daily basis.

Consider this useful advice: if you want to play the stock market, you must learn how to keep a watch on the scorecard, which is composed of two stock market indices. Zebu's platforms provide real-time price movements for the Nifty and Sensex. To learn more, open a trading account with us.

[forblogmostly]

Lorenzini Apparels - Navigating the Latest Updates on the BSE

The Bombay Stock Exchange (BSE) offers a wealth of information and resources for investors, traders, and market enthusiasts. On August 8, 2024, the BSE SENSEX closed at 78,886.22, reflecting a decrease of 581.79 points, or -0.73%, signaling a slight downturn in the market.

Market Overview

The BSE provides a robust platform for trading in a variety of securities, including equity, derivatives, indices, currency derivatives, debt, and more. One notable stock, Lorenzini Apparels Ltd (LAL | 540952 | INE740X01023), closed at 23.58, down by 0.12 points (-0.51%) on August 8, 2024. The day's trading saw fluctuations with a high of 27.50 and a low of 23.00, with the volume-weighted average price (VWAP) settling at 25.57.

Financial Performance and Market Depth

Lorenzini Apparels has shown a strong presence in the Garments & Apparels industry, with a market capitalization of ₹369.47 crore. The stock's 52-week high and low stand at 33.02 and 12.03, respectively. The company’s earnings per share (EPS) for the trailing twelve months (TTM) is 0.31, with a price-to-earnings (PE) ratio of 76.91, reflecting a premium valuation in the market.

On August 8, 2024, the market depth showed no significant buy or sell orders, indicating a calm trading day with low volatility.

Corporate Announcements and Compliance

BSE also keeps the market informed with regular corporate announcements. On August 7, 2024, Lorenzini Apparels made a disclosure under Regulation 30 of the SEBI (Listing and Disclosure Requirements) Regulations, 2015. This was followed by a board meeting intimation on August 6, 2024, and several other regulatory filings in July.

Peer Group Analysis

Comparing Lorenzini Apparels with its peers in the industry, such as Arvind, Vinny, and Spenta, the stock's performance appears modest. For instance, Arvind, a major player, traded at ₹382.60, down by 2.25%, with a 52-week range between 421.00 and 138.00.

Financial Highlights

For the fiscal year 2023-2024, Lorenzini Apparels reported a revenue of ₹54.76 crore and a net profit of ₹5.30 crore, translating to an EPS of 0.34. The company's operating profit margin (OPM) and net profit margin (NPM) were recorded at 21.66% and 9.67%, respectively, indicating a healthy financial standing.

[learnstockmarketcourses]

The Difference Between NSE and BSE

The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are two prominent stock exchanges in India, each with its own unique characteristics and historical significance. The BSE, established in 1875, is the oldest stock exchange in Asia and has a long-standing presence in the Indian financial markets. It initially operated through a physical trading floor, where trades were executed through an open outcry system. In contrast, the NSE, founded in 1992, was established to introduce a modern, electronic trading system and has since become the largest stock exchange in India by trading volume and market capitalization.

One of the primary differences between the NSE and BSE lies in their operational technologies and market mechanisms. The NSE was a pioneer in adopting a fully automated, screen-based trading system, which significantly enhanced transparency, speed, and efficiency in trading. This electronic trading system allows for real-time order execution and provides a more seamless trading experience. On the other hand, the BSE transitioned to electronic trading later, having historically relied on a physical trading floor before adopting technology-driven processes. Although the BSE has modernized its operations, the technological advancements and early adoption of automation by the NSE have given it a competitive edge in terms of trading efficiency and volume.

Market liquidity is another area where the NSE typically excels compared to the BSE. The NSE generally exhibits higher trading volumes and liquidity, leading to narrower bid-ask spreads and more efficient price discovery. This higher liquidity is particularly advantageous for institutional investors and large-scale traders who require the ability to execute large orders with minimal impact on market prices. The BSE, while also liquid, has historically had lower trading volumes compared to the NSE, affecting its overall market depth and liquidity.

In terms of indices, both exchanges have their own benchmark indices that serve as indicators of market performance. The BSE’s Sensex, comprising 30 of the largest and most actively traded stocks, is one of the most recognized indices in India and is often used as a barometer for the Indian economy. The NSE’s Nifty 50, which includes 50 of the top companies listed on the NSE, provides a broader representation of the market. Each index reflects the performance of its respective exchange and plays a crucial role in tracking market trends and investor sentiment.

Listing requirements and the number of listed companies also differ between the two exchanges. The BSE has a larger number of listed companies, offering a diverse range of investment options. The NSE, although having fewer listed companies, is known for its stringent listing criteria and regulatory standards. This difference in listing requirements can impact the quality and stability of the stocks listed on each exchange, with the NSE’s rigorous standards often perceived to attract more established and larger companies.

In summary, while both the NSE and BSE are integral to India’s financial markets, they differ in their operational histories, technological advancements, market liquidity, indices, listing requirements, and product offerings. The NSE’s modern, electronic trading system and higher liquidity have established it as a leading exchange for many traders and institutional investors. Meanwhile, the BSE’s rich history, larger number of listed companies, and influential index, Sensex, highlight its significant role in the Indian stock market landscape.

[aequitasindia]

Simplifying Stock Market Success with Siddhartha Bhaiya

SIDDHARTHA BHAIYA’S SPEECH AT CFA SOCIETY INDIA

Siddhartha Bhaiya, a renowned figure in the world of stock market investing with a remarkable two-decade-long journey in the financial industry. With a proven track record of success and a wealth of experience, Siddhartha has become a trusted and influential voice in the realm of investment. Throughout his illustrious career, he has consistently demonstrated an exceptional ability to navigate the complexities of the stock market, delivering over 30% CAGR since the inception of his Investment Firm, ‘Aequitas’ in 2013. And it was a great learning experience listening to Siddhartha in the event organised by CFA Society India.

Siddhartha’s twitter bio calls himself a ‘Multi-bagger’ and that is exactly where he kicks off his speech. He goes on to explaining how Sensex has been a multi-bagger since its inception in 1979, with every penny invested in 1979 would be worth 650x in 40 years, giving a return of 16% CAGR. And if you happen to select the right companies amongst them, return would have been much greater than the index itself. One of the main takeaways would be the importance of patience and a long-term view in equity investing.

Even though the Nifty/Sensex index themselves have been multi-bagger over the years, yet a lot of people don’t make money in the equity markets. Emphasizing on it, Siddhartha from his experience gives a practical guidance on how to avoid pitfalls while investing. He points out some major reasons due to which people don’t make money in stock markets, rather lose money. Foremost reason is individuals looking at stock market as a gambling arena or they are investing on tips. On the contrary, it is a game of skill, which involves examining past information and analysing available data to invest. He advices investors to avoid taking impulsive decisions and cites a common phenomenon of a new investor ‘People these days spend less time in selecting stock than selecting a shirt to buy.’

He then talks about cons of derivatives and IPO investing, where people come with wrong mindset of ‘get-rich-quick’. Historically only 10% of the traders are profitable in derivatives, which clearly tells that the odds are against you. And almost 9 out of 10 companies that lists eventually gets delisted. This greed can easily get out of hand when the market moves against you and is equally likely to negatively influence your investing decision going further. Another risk he mentioned is ‘Leverage’. Using leverage can result in much higher downside risk, sometimes resulting in losses greater than your initial capital investment. His idea of pitfalls reminds me of a quote by Bob Knight, ‘Most people have the will to win. However, few have the will to prepare to win.’

Mr Bhaiya being a proven multi-bagger explains the mindset behind it, which initially is to prioritize survival. He quotes Buffet, ‘The first rule of investing is don’t lose money. And the second rule of investing is don’t forget the first rule’. And it emphasizes the importance of protecting your capital. But by taking calculated risks and investing in promising companies, people have the potential to reap significant rewards.

He reiterates the fundamental principal – ‘Time in market in more important than timing the market.’ He explains the importance of ‘holding’ for it to give you multi-fold returns. And says short term drawdowns are just noise, and you must be prepared for multiple drawdowns. He also mentions that many of his multi-baggers took long time to pay off, often going unpaid for as long as 4-5 years. In his words ‘it is always darkest just before the dawn.’ Guiding on long term investing, he recalls that 7 out of 10 stocks with Aequitas have been held for more than 8 years. Session was full of practical applications, where he tells how GAEL has given 33x returns over last 10 years despite facing 8 odd drawdowns. Key take away was, returns are never linear.

Siddhartha gives a ground level advice to investors. Invest in a new stock every single month for next 3-5 years, and after those years pass by you’ll have 36-60 stocks, out of which some will become multi-bagger, some will lose money and some will give you average returns. But most importantly you’ll learn what went right and what went wrong. Highlights of the entire session were such practical hacks. Another hack he mentioned was to always eye for market leaders while investing in small caps. A stock with less than 10 PE and net cash balance sheet has a lower probability to fail. He talks about his preferred matrix of stock below 0.3x Mcap/Sales. He guides on to never average the stocks just because the price has gone down.

Continuing with sharing his mindset, he talks about the difference between luck and skill while making crucial investing decision. He asks investors to wait for the right opportunity by saying ‘Mistake of omission is better than mistakes of commission.’ He meant market gives us numerous opportunities, but we should be wise to know when to jump for it and when to avoid it. Further on this, he explains the cyclical nature of companies and market. Where he says to wait for the cycle to shift in your favour and that is when you will have extraordinary returns.

Apart from the investing wisdom, Siddhartha also emphasises on the ancillary habits one should inculcate to be successful in every field. He guides on how important ‘book reading’ habits are. It opens new door of ideas and prevents you from making mistakes that others have already made in their life. It is the knowledge bank which helps investors build a solid foundation and understand the principles behind successful investing. The seasoned investor likely emphasized the importance of staying informed and continually learning about market dynamics and investment strategies.

Speaker also explains about the rationale of collaborating the idea of Value investing, growth investing and mostly importantly Contrarian Investing. By which he meant Contrarian approach does not mean doing the opposite of others, rather, it means doing things differently. And according to him most significant factor to consider when buying and selling a stock is ‘Valuation’, which he also follows in day-to-day decision making when it comes to investing.

Lastly, he relates on how healthy lifestyle is also crucial to make better decisions, even under stress. A healthy lifestyle can help you thrive as you move through your life’s journey. Making healthy choices isn’t always easy. However, your efforts will pay off in many ways, and for the rest of your life. This achievable change is more likely to become a habit you keep.

Their remarkable career is marked by a series of notable achievements, including successfully predicting market trends, making profitable investments in both bull and bear markets. This he demonstrates using many real life case studies from his past which includes Apar Industries, Avanti Feeds, Jindal Stainless and Elecon Engineering, amongst others.

With an impressive two-decade history of success, Siddhartha Bhaiya continues to be an influential figure, guiding investors, both novice and seasoned, toward achieving financial prosperity in the ever-evolving stock market landscape. Their wisdom, expertise, and unwavering commitment to excellence make them a true luminary in the field of stock market investing.

[stockmarketknowledge]

National Stock Exchange vs Bombay Stock Exchange

The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are the two primary stock exchanges in India. Here's a comparison between the two:

Establishment:

The Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia, established in 1875. It is located in Mumbai (formerly Bombay).

The National Stock Exchange (NSE) was established much later, in 1992. It was founded as a result of the Indian government's efforts to modernize and reform the country's capital markets.

Ownership and Management:

BSE is a corporatized and demutualized entity, meaning it is owned by shareholders and operates as a for-profit organization. It is managed by the BSE Limited.

NSE is also a corporatized and demutualized entity, owned by a consortium of financial institutions, banks, and insurance companies. It is managed by the National Stock Exchange of India Limited.

Indices:

BSE's flagship index is the Sensex, which comprises the top 30 stocks listed on the BSE based on market capitalization and liquidity.

NSE's flagship index is the Nifty 50 (Nifty), which consists of the top 50 stocks listed on the NSE based on market capitalization and liquidity.

Market Share:

Historically, BSE had a dominant position in the Indian stock market. However, with the introduction of electronic trading and the establishment of NSE, the latter gained significant market share.

Currently, both exchanges compete for market share, with NSE having a slight edge in terms of trading volumes and turnover.

Technology and Infrastructure:

NSE is known for its advanced trading technology and infrastructure, including high-speed trading platforms and robust risk management systems.

BSE has also made significant investments in technology in recent years to enhance its trading systems and improve efficiency.

Product Offerings:

Both exchanges offer a wide range of financial products, including equities, derivatives (futures and options), commodities, currencies, and debt instruments.

NSE was the first exchange to introduce trading in derivatives instruments such as index futures and options in India.

Regulatory Oversight:

Both BSE and NSE are regulated by the Securities and Exchange Board of India (SEBI), which is the primary regulatory body for the securities markets in India.

SEBI regulates the operations of stock exchanges, ensures compliance with securities laws, and protects the interests of investors.

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Overall, both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) play crucial roles in the Indian capital markets, providing platforms for companies to raise capital, investors to trade securities, and stakeholders to participate in the country's economic growth.

[stockmarketanalysis]

Deciphering the Dynamics: A Deep Dive into Indian Stock Market Statistics

Introduction:

The Indian stock market stands as a dynamic hub of financial activity, reflecting the country's economic prowess and investor sentiment. With its rich tapestry of companies spanning various sectors and industries, the Indian stock market offers a plethora of opportunities for investors. In this article, we delve into the realm of Indian stock market statistics, unraveling the key metrics, trends, and insights that shape its landscape.

Market Capitalization:

Market capitalization serves as a fundamental measure of a company's value in the stock market and is calculated by multiplying its share price by the total number of outstanding shares. In India, the market capitalization of listed companies provides a gauge of the overall size and valuation of the stock market. As of [insert date], the total market capitalization of the Indian stock market stood at [insert value], reflecting the collective worth of listed companies.

Benchmark Indices:

Benchmark indices play a pivotal role in tracking the performance of the Indian stock market and serve as barometers of investor sentiment and market trends. The two primary benchmark indices in India are the BSE Sensex and the NSE Nifty. The BSE Sensex comprises the top 30 companies listed on the Bombay Stock Exchange (BSE), representing diverse sectors of the economy. Similarly, the NSE Nifty consists of the top 50 companies listed on the National Stock Exchange (NSE), providing broad market coverage. These indices serve as benchmarks for evaluating the performance of mutual funds, exchange-traded funds (ETFs), and individual portfolios.

Trading Volume:

Trading volume refers to the total number of shares traded on the stock exchange within a specific period, typically measured on a daily, monthly, or yearly basis. Higher trading volumes indicate increased market activity and liquidity, reflecting investor interest and participation. In India, the trading volume on stock exchanges such as the BSE and NSE provides insights into market dynamics, including liquidity levels, investor sentiment, and trading patterns.

Foreign Institutional Investment (FII) and Domestic Institutional Investment (DII):

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) play significant roles in shaping the Indian stock market landscape. FIIs are institutional investors such as mutual funds, hedge funds, and pension funds based outside India, while DIIs comprise domestic entities such as mutual funds, insurance companies, and banks. The combined investments of FIIs and DIIs influence market trends, capital flows, and stock valuations. Tracking FII and DII activity provides valuable insights into investor behavior and market sentiment.

Sectoral Performance:

The Indian stock market encompasses a diverse array of sectors, including information technology, banking, pharmaceuticals, consumer goods, and infrastructure. Monitoring the performance of individual sectors offers insights into broader economic trends, policy developments, and sector-specific dynamics. Sectoral indices such as the Nifty Bank, Nifty IT, and Nifty Pharma track the performance of specific sectors, enabling investors to identify emerging opportunities and trends within the market.

Price-Earnings (P/E) Ratio:

The price-earnings (P/E) ratio is a widely used valuation metric that compares a company's stock price to its earnings per share (EPS). A higher P/E ratio indicates that investors are willing to pay more for each unit of earnings, reflecting optimism about future growth prospects. Conversely, a lower P/E ratio may suggest undervaluation or subdued growth expectations. Tracking the P/E ratios of individual stocks, sectors, or market indices provides insights into relative valuations and market sentiment.

Market Breadth:

Market breadth measures the breadth and depth of participation in the stock market, gauging the number of advancing and declining stocks relative to the total number of listed securities. A positive market breadth indicates broad-based buying interest and market strength, while a negative market breadth signals selling pressure and potential weakness. Analyzing market breadth indicators such as the advance-decline ratio, new highs-new lows ratio, and volume breadth helps investors assess the underlying health and direction of the market.

Conclusion:

Indian stock market statistics offer a wealth of information and insights for investors, analysts, and policymakers alike. By understanding key metrics such as market capitalization, benchmark indices, trading volume, institutional investments, sectoral performance, valuation ratios, and market breadth, stakeholders can make informed decisions and navigate the complexities of the stock market landscape. While past performance and statistical trends provide valuable context, it is essential to exercise diligence, conduct thorough research, and stay attuned to evolving market dynamics to make prudent investment choices. With its vibrancy, diversity, and growth potential, the Indian stock market continues to captivate investors and shape India's economic trajectory on the global stage.

[online-trading-app]

Understanding the Effects of Sensex Movements on BSE Midcap Stocks

The Bombay Stock Exchange (BSE) Sensex is a barometer for the Indian stock market, reflecting the performance of 30 of the largest and most financially sound companies listed on the BSE. Movements in the Sensex provide a snapshot of market sentiment and economic health, influencing a wide array of stocks beyond these 30 giants. Specifically, BSE Midcap stocks, representing medium-sized companies, exhibit significant sensitivity to Sensex fluctuations. As investors keep an eye on the BSE index today, understanding this relationship becomes pivotal for informed investment decisions.

Midcap stocks, nestled between the large caps and small caps in terms of market capitalisation, offer a unique blend of growth potential and stability. Unlike large caps, which are often well-established market leaders, midcaps are in a phase of growth, seeking to expand their market share and operations. They are, however, less volatile than small caps, making them attractive to investors looking for growth with a moderate level of risk. The nifty 500 stocks list, encompassing a broad range of companies, including many midcaps, is often looked at by investors to gauge broader market trends and identify potential investment opportunities.

The relationship between Sensex movements and BSE midcap stocks is complex. To begin, when the Sensex rises, indicating positive market sentiment, midcap stocks frequently experience a ripple effect. Investors, buoyed by a bullish outlook, may seek to diversify their portfolios by investing in midcaps, which they believe have higher growth potential than the already well-valued large caps. This influx of investment has the potential to drive significant gains in midcap stocks. In contrast, a drop in the Sensex can cause a sharp withdrawal from midcaps as investors seek the safety of large caps or more secure asset classes.

Moreover, Sensex movements can affect the liquidity of midcap stocks. During bullish market phases, liquidity increases as more investors are willing to buy and sell these stocks, leading to narrower bid-ask spreads and better price discovery. In bearish phases, liquidity can dry up, making it harder for investors to execute large orders without impacting the stock price significantly.

The impact of Sensex movements on BSE midcap stocks is also seen in the context of foreign institutional investments (FIIs). FIIs, which play a significant role in Indian equity markets, often rebalance their portfolios based on the performance of the Sensex. A rising Sensex may attract more FII funds into India, with midcaps benefiting from the spillover effect. On the other hand, a falling Sensex can lead to FII pullouts, adversely affecting midcap stocks.

However, investors need to conduct thorough research before making investment decisions based on Sensex movements. While trends can provide useful indicators, individual midcap stocks may react differently based on company-specific factors such as earnings growth, sectoral trends, and management effectiveness. Investors should also consider broader economic indicators and global market trends, which can influence market movements beyond the Sensex.

[ezyforextrading]

What is Sensex? Sensex, a portmanteau of "Sensitive" and "Index," was coined by Deepak Mohoni, a stock market expert. It represents the most popular market index of 30 companies listed under the Bombay Stock Exchange (BSE). These component companies are among the largest and most actively traded stocks in India. Criteria for Inclusion The selection of companies under the Sensex is governed by the S&P BSE Index Committee, which adheres to specific criteria: Listing on the Bombay Stock Exchange in India. Large or mega-cap stocks. Liquidity of the stocks. Earnings generated from core activities. Contribution to maintaining sector balance in the country’s equity market. Evolution of Sensex Since its inception in the early 1990s, Sensex has witnessed remarkable growth, particularly post-2000. Various milestones mark its journey, reflecting the dynamic nature of India's economic landscape. Milestones Early 90’s to the end of the 20th century July 1990: Sensex closed at 1001, touching 1000 for the first time. 1991-1992: Introduction of liberal economic policies led to crossing the 2000 mark. 1999: Crossed 5000 points, marking the onset of the new century. Beginning of the 21st century to mid-2000s IT boom propelled the index beyond 6000 points. Settlement in the Ambani family spurred growth, crossing 7000 points. Rapid expansion from 9000 to 10,000 points between June and December 2005. Mid-2000s to its end Touched 10,003 points in February 2006. Rapid growth to 20,000 points by December 2007. Closed at 21,004.96 points in November 2010, surpassing the 21,000 mark. 2013-2019 Closed at 21,033.97 points in October 2013. Crossed 30,000 points in January 2015. Surged past 40,000 points in May 2019. Methodology of Calculation Free-Float Market Capitalization The calculation of the Sensex relies on the free-float market capitalization of its 30 constituent companies. This methodology considers only shares available for trading, excluding those held by promoters, governments, and strategic investors. Weighted Methodology Sensex follows a market capitalization-weighted methodology, wherein the weightage of each stock in the index is determined by its free-float market capitalization. Factors Affecting Calculation Several factors influence the calculation of the Sensex, including: Market capitalization changes of constituent companies. Stock price fluctuations. Adjustments due to bonus issues, stock splits, mergers, and acquisitions. Sensex Formula The formula for calculating Sensex is: Sensex = (Total free-float market capitalization of 30 companies / Index Divisor) x Base Value Understanding Sensex vs. Nifty Sensex and Nifty are both crucial benchmark indices of the Indian stock market, each with distinct features and calculations. Sensex Represents the top 30 companies on the BSE. Calculated using a market capitalization-weighted methodology. Nifty Comprises the top 50 companies on the National Stock Exchange (NSE). Calculated using a free-float market capitalization-weighted methodology. Investing in Sensex Investing in Sensex involves several steps: Opening a Demat Account: to hold shares electronically. Opening a Trading Account: for buying and selling securities online. Holding a Bank Account: necessary for trading activities. Major Plunges in Sensex Sensex has weathered significant market downturns, notably during the global financial crisis of 2008-2009. Instances include: Loss of 1408 points on 21st January 2008, the highest since inception. Consistent drops throughout 2008, hitting a low of 8509.56 points in October. Nearly 750 points decline in 2009 due to the Satyam fraud. FAQs What is Sensex in simple words? Sensex, short for Sensitive Index, represents a basket of stocks from 30 large and actively traded companies listed on the Bombay Stock Exchange (BSE), providing a snapshot of India's stock market performance. How Sensex works? Sensex is calculated

using the free-float market capitalization method, which considers the market valueof only the freely tradable stocks of the index constituents. Why is Sensex used? Sensex serves as a barometer of the Indian stock market, reflecting investor sentiment and overall economic health. Why does the Sensex fluctuate? Fluctuations in Sensex are influenced by various factors including economic indicators, geopolitical events, corporate earnings, and investor sentiment. How do I purchase Sensex shares? Investors can purchase shares represented in the Sensex by opening a Demat and trading account, followed by buying shares through the stock exchange. https://ezyforextrading.com/learn-trading/sensex/?feed_id=4003&_unique_id=65c51229e251a&EzyForexTrading

[sharemarketmalayalam]

The BSE Sensex, also called the S&P BSE SENSEX or simply the SENSEX, is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange. It is the oldest stock index in India and serves as the country's primary barometer of economy. The 30 component companies are leaders in their respective industries, offering a wide range of products and services to customers across India and abroad. They represent various major sectors of the economy like information technology, financial services, oil and gas, healthcare, automotive, consumer goods and more. The Sensex was first compiled in 1986 with a base value of 100 points. Over the years, it has become one of the most tracked stock market benchmarks in India. The index is computed using the free-float market capitalization methodology, wherein the level of index reflects the free-float market value of 30 component stocks relative to a base period. It indicates the overall direction of the market and changing business sentiments based on the performance of these market leaders.

[streetinvestment]

Nifty trades above 19,900 level; market breadth in favor of buyers.

Equity benchmarks hit fresh intraday high; auto shares in demand.

The domestic equity benchmarks extended their early gains and hit fresh intraday high in morning trade. The Nifty continued to hold above the 19,900 level. Auto stocks managed to edge higher for third day in a row.

The barometer index, the S&P BSE Sensex, was up 330.39 points or 0.50% to 66,929.30. The Nifty 50 index advanced 110.50 points or 0.56% to 19,930.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.88% while the S&P BSE Small-Cap index added 0.77%.

The market breadth was strong. On the BSE, 2,243 shares rose and 1,213 shares fell. A total of 204 shares were unchanged.

Prime Minister Narendra Modi, in his role as the host of the G20 Summit, concluded the two-day event. Indian Prime Minister Narendra Modi and U.S. President Joe Biden pledged to deepen the partnership between both countries in their second bilateral meeting in less than six months.

New Listing:

Shares of Rishabh Instruments were currently trading at Rs 460.25 on the BSE, representing a premium of 4.37% as compared with the issue price of Rs 441.

The scrip was listed at Rs 460, exhibiting a premium of 4.31% to the issue price.

So far, the stock has hit a high of 469.65 and a low of 432.25. On the BSE, over 3.49 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Rishabh Instruments was subscribed 31.65 times. The issue opened for bidding on 30 August 2023 and it closed on 1 September 2023. The price band of the IPO was fixed at Rs 418-441 per share.

Shares of Ratnaveer Precision Engineering were currently trading at Rs 129.15 on the BSE, representing a premium of 31.79% as compared with the issue price of Rs 98.

The scrip was listed at Rs 128, exhibiting a premium of 30.61% to the issue price.

So far, the stock has hit a high of 134 and a low of 123. On the BSE, over 9.20 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Ratnaveer Precision Engineering was subscribed 93.99 times. The issue opened for bidding on 4 September 2023 and it closed on 6 September 2023. The price band of the IPO was fixed at Rs 93-98 per share.

Buzzing Index:

The Nifty Auto rose 0.97% to 16,258.45. The index has added 2.12% in three sessions.

Tube Investments of India (up 5.6%), Maruti Suzuki India (up 1.14%), Tata Motors (up 1%), Samvardhana Motherson International (up 0.7%) and Hero MotoCorp (up 0.61%) were the top gainers.

Among the other gainers were Balkrishna Industries (up 0.52%), Ashok Leyland (up 0.49%), MRF (up 0.38%), Mahindra & Mahindra (up 0.3%) and TVS Motor Company (up 0.3%).

On the other hand, Bosch (down 0.51%), Bharat Forge (down 0.34%) and Sona BLW Precision Forgings (down 0.24%) moved lower.

Stocks in Spotlight:

IRB Infrastructure Developers rallied 3.17%. The company’s gross toll collection jumped 24% to Rs 417 crore in August 2023 as compared with Rs 336 crore in August 2022.

Gateway Distriparks fell 1.21%. The company announced that its chief financial officer (CFO), Sandeep Kumar Shaw has tendered his resignation, effective from the close of business hours on 28 November 2023.

Reliance Industries (RIL) rose 0.53%. Jio Platforms on Friday 8 September 2023, announced its partnership with NVIDIA to develop a cloud-based AI compute infrastructure. This infrastructure aims to bolster India’s position in the field of artificial intelligence. The new AI cloud infrastructure will provide access to accelerated computing, high-speed networking, and secure cloud services to various individuals and organizations in India, such as researchers, developers, startups, scientists, and AI practitioners.

Adani Enterprises gained 1.71%. Adani Global Pte. Ltd., Singapore, a step down wholly owned subsidiary of the Company (AGPTE) has signed Joint Venture Agreement with Kowa Holdings Asia Pte. Ltd., Singapore (KOWA) on 8th September 2023. The agreement is for the sales and marketing of green ammonia, green hydrogen and its derivatives produced and supplied by Adani Group, in the agreed Territory.

Strides Pharma Science added 0.81%. The company said that its step-down wholly owned subsidiary, Strides Pharma Global has received approval for Sevelamer Carbonate for oral suspension USP, 0.8g and 2.4g, from the United States Food & Drug Administration (USFDA).

SJVN jumped 4.69%. The company said that its wholly owned subsidiary SJVN Green Energy (SGEL) has signed PPA with Bhakra Beas Management Board (BBMB) for 18 MW Solar Power.

Numbers to Watch:

The yield on India’s 10-year benchmark federal paper declined 0.15% to 7.188 from its previous close of 7.173.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.9200, compared with its close of 83.0275 during the previous trading session.

MCX Gold futures for 5 October 2023 settlement added 0.10% to Rs 58,955.

The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, was down 0.36% to 104.72.

The United States 10-year bond yield rose 0.90% to 4.294.

In the commodities market, Brent crude for November 2023 settlement lost 14 cents or 0.15% to $90.51 a barrel.

Global Markets:

Asian stocks are trading mixed on Monday where key economic data from major economies will take center stage.

On Tuesday, India will release its inflation and industrial output figures for August, while China will announce its industrial output, retail sales, and most notably, house sale prices on Friday.

US stocks closed higher on Friday as Apple and other tech and growth stocks witnessed some buying after the recent fall due to China’s ban on iPhones for government employees.

[trading-apps]

Navigating the Volatility: Understanding the Impact of Nifty Share Price and Sensex on Indian Markets

The Indian stock market has been facing high volatility in recent times. Key indices like Nifty share price nse and Sensex today have seen major fluctuations, impacting investor sentiment. In times like these, it becomes critical for market participants to understand what is driving the volatility and how to navigate it prudently.

The Nifty 50 index represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange. It covers 13 sectors and offers the most definitive benchmark for the Indian equity market. The Sensex index consists of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. It is the oldest stock index in India dating back to 1986. Both the NSE’s Nifty share price and Sensex are bellwethers of the overall health of the Indian economy and stock markets.

Recently, the NSE’s Nifty share price and the Sensex have reacted sharply to global cues, crude oil prices, inflationary pressures, rupee movement against the dollar and domestic economic factors. Rising inflation globally has triggered fears of aggressive rate hikes by central banks. This has led to foreign portfolio investors pulling out funds from emerging markets like India. High crude oil prices have also put pressure on the rupee leading to imported inflation. These factors have contributed to the high volatility seen in Indian indices.

For retail investors, such volatility can seem concerning leading many to panic sell. However, experienced investors know that with high volatility also comes opportunity. Periods of heightened volatility allow investors to buy quality stocks at attractive valuations for the long term. By following an asset allocation strategy and staggered buying, retail investors can take advantage of the ups and downs in NSE’s Nifty share price and Sensex.

Staying invested in equity mutual funds through Systematic Investment Plans is also a sound strategy. Equity funds help average out the volatility by investing across market cycles. Reviewing one’s risk appetite, investment goals and time horizon during volatile markets is also prudent rather than making impulsive decisions. Market veterans know that time in the market is more critical than timing the market.

While the swings in NSE’s Nifty share price and Sensex can be unnerving for some investors, the wise approach is to focus on fundamentals, maintain liquidity and not stress about short-term volatility. India’s growth story remains intact despite global headwinds. With prudent investing and patience, retail investors can navigate the current volatility successfully.

[amginvest]

What is Sensex? How is it calculated?

Definition of Sensex

SENSEX is a blend of the two words, sensitive and index. The BSE SENSEX is a free-float market-weighted stock market index composed of 30 well-established and financially solid companies listed on the Bombay Stock Exchange. Its other names are SENSEX and S&P Bombay Stock Exchange Sensitive Index. The 30 firms that make-up the index are among the biggest and most liquid stocks, comprising a cross-section of the Indian economy's main industrial sectors.

To further simplify, consider the Sensex as a numerical update on the performance of 30 of the most liquid and financially secure corporate stocks listed on the BSE Limited. The overall state of the Indian economy, the market's equity health, and investor and trader attitude are all reflected in the index. Participants will trade more actively and raise the index if they see the economy performing well in the near future.

How are they selected?

The 30 corporate stocks that make up the "market index" are referred to as constituents of the Sensex. They are picked based on the following benchmarks:

To begin with, for the equities to qualify for index inclusion, they all need to be listed on the BSE. However, the listing history must be at least six months old.

In order to facilitate trading, the stock should have more liquidity.

The company should be categorized as large or mid-sized based on its market capitalization. Or, to put it another way, it ought to rank in the top 75 corporations in terms of total market valuation (the value of the company's shares held by insiders and outside investors).

Last but not least, the company ought to have a weighted balance of sectors. The weight of a company in the index increases with its market capitalization.

Sensex calculation

The float-adjusted capitalization approach, often known as free float market capitalization, is used to determine the BSE Sensex. The terminology can be broken down into two main parts:

Free float, or floating shares,

Market capitalization, or market cap.

To learn more about how Sensex is calculated, connect with our experts at AMG today!

[seosamco]

NIFTY 50 was 12.47% up last year. Where do you stand?

Since 2014, Nifty 50, the flagship index of NSE, has provided Indian investors with substantial wealth, increasing their net worth by 2.5X. As per reports, the value of Nifty 50 has doubled in 9 years with FIIs (foreign institutional investors) purchasing $49.21 billion worth of Indian equities and domestic institutions pouring in a whopping ₹7 lakh crore. This performance has been backed by India becoming one of the fastest-growing economies in the world.

The prevalent investor sentiment on the future performance of the Indian stock market is bullish, making investing in Nifty 50 a lucrative opportunity. There are multiple ways to invest in Nifty 50, including direct indexing, ETF (exchange-traded funds), index mutual funds, etc. So, is it a good time to start investing in this index?

The following sections will provide all the information you need to decide your stance.

A Brief Overview of the Nifty 50 Index

Nifty 50 is a benchmark index of the Indian stock market on the National Stock Exchange (NSE). It represents the top 50 companies listed on the exchange in terms of their free-float market capitalisation. In simple words, it represents a basket of the 50 largest companies in India.

The Nifty 50 index is the most frequently referenced indicator of the Indian stock market along with BSE Sensex, which represents the top 30 companies of the Bombay Stock Exchange (BSE). As it represents the largest and most reputable companies in India, it also reflects the state of our country’s economy. Therefore, any movement of this index reflects changes in the broader market.

The index can be used for various purposes such as benchmarking portfolios, operating index funds and other structured products and understanding Indian market conditions.

The stocks listed on Nifty 50 altogether account for 65% of the free-float market cap of all securities listed on Indian exchanges. In other words, market liquidity is highly concentrated in the top 50 stocks listed on the NSE.

Some of the renowned companies listed on Nifty 50 are Reliance Industries Ltd, HDFC Bank Ltd, ICICI Bank Ltd, Infosys, ITC, TCS, etc.

How Are Stocks Selected for the Nifty 50 Index?

Only stocks listed on Nifty 100 are eligible to be listed in Nifty 50. However, there are a set of eligibility criteria that these stocks need to fulfil to be added to the index. Here is a brief overview of these parameters:

Listed Stocks: A company can be listed on Nifty 50 if it is listed on NSE and has a listing history of at least 6 months. In addition, its share must be tradable in the futures and options segment of the NSE.

Basic Construct: Only free-float shares are allowed to be listed on the Nifty 50 index. The average free-float market cap of a Nifty 50 stock needs to be a minimum of 1.5 times the average free-float market cap of the smallest listed company on the Nifty 100.

Liquidity: These stocks must have high liquidity and always be available for trading. A Nifty 50 stock needs to have been 100% tradable for six months as of its latest review.

Index Weightage: Every stock in Nifty 50 does not have the same weightage. Instead, companies ranked higher on the index carry higher weightage due to their larger market share. For instance, HDFC Bank Ltd which has a higher market cap than ICICI Bank Ltd also carries higher weightage as of data from March 2023.

Reviewing and Balancing: Nifty 50 is reviewed by a professional team led by the Board of Directors of NSE Indices Limited. Based on this review, the index is rebalanced on January 31 and July 31 of every year based on the average six months’ data of stocks.

Returns from the Nifty 50 Index

In 2023, India’s equity markets have been performing favourably compared to its emerging market peers. So far, Nifty 50 has followed the market trend by making net gains of 3% in May, 4% in April and 7% since March. The index hit its all-time high of 18,887.60 in December 2022 and as of the latest data, it’s just 50 points away from it.

So, how has this performance affected the returns of Nifty 50?

As of June 19, 2023, Nifty 50 has achieved 22.18% gains over one year and 73.31% gains over the last five years, approximately. This means if an investor had invested ₹1,00,000 in the index over a year, he/she would have made ₹22,180 in profits. Over a 5-year investment tenure, he/she would have made ₹73,310 in profits.

Historically, there have been times when the index has given low and even negative returns. But on average, the Nifty 50 has risen considerably, delivering an average of 12.53% annualised returns over the last decade.

Benefits of Investing in Nifty 50

Here are some of the advantages of investing in Nifty 50 stocks directly or via index funds:

Diversification: Whether you invest in index funds or track the index yourself, you will get to invest in many stocks. Nifty 50 includes stocks from 14 different sectors, allowing you to diversify your portfolio across India’s top-performing companies. Hence, losses from a single stock or a sector will not affect your portfolio much.

Low Entry Barrier: Index funds and ETFs allow you to gain exposure to the Indian market with a small amount of money. You can start investing in a Nifty 50 fund with a sum as little as ₹100/month via an SIP (Systematic Investment Plan).

Returns Potential: When tracking Nifty 50, you get returns that reflect the value of the index. Investing in a passive way allows you to get good returns without taking on the additional risks of picking the right stocks. This makes Nifty 50 investments ideal for the long term.

No Investment Biases: A great advantage of investing in the index is that it eliminates human biases that affect investment returns. Passive investments follow an automated methodology that has been proven to be efficient.

While index investments are ideal for beginners with moderate risk appetite, other investors do prefer active investment and trading strategies.

Limitations of Investing in the Nifty 50

Here are some of the limitations of investing in the Nifty 50 index:

Sectoral Concentration: Over the years, the Indian stock market has become highly concentrated. Today, 80% of all capital invested in NSE belongs to the top 5 sectors- financial services, IT, oil and gas, FMCG and automobiles. There is also plenty of concentration at the stock level; the top 5 stocks represent 40% of Nifty.

Lack of Flexibility: When you invest in Nifty 50 funds or ETFs, you cannot make changes to the portfolio to account for recent developments in the markets. Similarly, you cannot reduce your potential losses.

Inability to Generate Alpha: Passive investments work on the principle that markets are efficient and thus, value stock prices fairly. However, in reality, many stocks are not valued fairly, creating opportunities for active investors and traders. But, passive traders face the brunt end of it.

How Samco Can Help to Ace the Index

Many traders do not have the tools to actively measure their portfolio returns against a benchmark. The New-Gen Samco App allows you to create your own personal index and improve your performance by beating the market. It provides personalised market insights and professional assistance to help you achieve your financial goals.

Here are some of the features of Samco’s advanced trading and investment platform:

Personal Index: Create a personal index for your portfolio and track it using Samco.

Net Worth Tracker: Watch as your net worth grows and compare it with other Samco users

Social Sharing: Share the results of MyIndex and Net Worth with your friends.

Peer Comparison Tracker: You can also compare your Personal Index performance with other Samco users.

Star Fund Manager: Use this to compare your portfolio and trading performance against fund managers operating funds over ₹20 crore.

Trading Style Analysis: Understand your trading style category and view your traded turnover and work on improvements.

Thousands of investors and traders have taken the pledge to ace the index. Do you want to outperform the market as well? 

How Can You Invest in Nifty 50 Stocks?

The following are the different ways to invest in the Nifty 50 index:

Direct Stock Investments

In this option, you check the index and invest in all the stocks directly as per their weightage. This means that you will have to monitor and rebalance your portfolio daily as per changes in Nifty 50. This method provides the advantage of being in direct control of your portfolio and avoiding fund management fees. However, it is time-consuming and complex.

 Via Derivatives

Another way to invest in the Nifty 50 index is through derivatives such as futures and options. These are financial contracts where the underlying asset is an index. Advanced traders with high-risk appetites can speculate or hedge on the upward/downward movement of the Nifty 50 using derivative contracts.

Via ETFs

Exchange Traded Funds (ETFs) are like mutual funds as they pool money from multiple investors and invest in a basket of stocks. However, unlike mutual funds, you can buy or sell index ETFs on the stock exchange during trading hours. A Nifty 50 ETF tracks the performance of the listed stocks and generates similar returns.

Index Funds

Index funds are equity mutual funds that invest in securities listed on their respective benchmark indices. These are professionally managed by a fund manager who monitors the portfolio on your behalf. You can invest in Nifty 50 index funds at a very low cost.

However, index funds carry some limitations. You cannot directly sell your investment and you have to pay an expense ratio and an exit load to the fund house.

Conclusion

An index like Nifty 50 is perfectly suitable for first-time investors and acts as their stepping stone in the world of investing. They offer a cheap way to take broad-market exposure and get returns in line with the Indian stock market.

Although this index is volatile in the short term, it has a history of delivering good returns in the long run. Advanced traders and investors can try out various strategies to ace the index, but that requires knowledge, patience and the willingness to take high risks. So what are you waiting for? Join Samco today and start your stock market journey with confidence. Click here to open your free Demat account with Samco now.