SENSEX is the short form of BSE-Sensitive Index and is a "Market Capitalization-Weighted" index of 30 stocks of of large, well-established and financially sound companies. It is the heart of Indian stock markets and has the listed stocks at The Stock Exchange, Mumbai. It is the oldest index of the Indian Stock market, it provides time series data over a fairly long period of time (since 1978-79).
objectives of SENSEX
The SENSEX is the benchmark index of the Indian Capital Markets with wide acceptance among individual investors, institutional investors, foreign investors and fund managers. The objectives of the index are:
To measure market movements
Given its long history and its wide acceptance, no other index matches the SENSEX in reflecting market movements and sentiments. SENSEX is widely used to describe the mood in the Indian Stock markets.
Benchmark for funds performance
The inclusion of blue chip companies and the wide and balanced industry representation in the SENSEX makes it the ideal benchmark for fund managers to compare the performance of their funds.
For index based derivative products
Institutional investors, money managers and small investors all refer to the SENSEX for their specific purposes The SENSEX is in effect the proxy for the Indian stock markets. The country's first derivative product i.e. Index-Futures was launched on SENSEX.
The criteria for selection and review of scrips for the SENSEX are
A. Quantitative Criteria
-Market Capitalization
-Liquidity
-Continuity
-Industry Representation
-Listed History
B. Qualitative Criteria
-Track Record
objectives of SENSEX
The SENSEX is the benchmark index of the Indian Capital Markets with wide acceptance among individual investors, institutional investors, foreign investors and fund managers. The objectives of the index are:
To measure market movements
Given its long history and its wide acceptance, no other index matches the SENSEX in reflecting market movements and sentiments. SENSEX is widely used to describe the mood in the Indian Stock markets.
Benchmark for funds performance
The inclusion of blue chip companies and the wide and balanced industry representation in the SENSEX makes it the ideal benchmark for fund managers to compare the performance of their funds.
For index based derivative products
Institutional investors, money managers and small investors all refer to the SENSEX for their specific purposes The SENSEX is in effect the proxy for the Indian stock markets. The country's first derivative product i.e. Index-Futures was launched on SENSEX.
The criteria for selection and review of scrips for the SENSEX are
A. Quantitative Criteria
-Market Capitalization
-Liquidity
-Continuity
-Industry Representation
-Listed History
B. Qualitative Criteria
-Track Record