30-Share Index (BSE Sensex)

  • March 4, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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30-Share Index (BSE Sensex)

Subject: Economy

Context: Led by Reliance Industries (RIL), the 30-share index rallied by another 1,147.76 points to 51,444.65 amidst strong global cues and hopes of stronger economic recovery and earnings growth.

Concept:

  • NSE Nifty index also increased by 326.50 points to 15,245.60 on sustained buying support.

About BSE Sensex

  • It is the benchmark index of India’s BSE, formerly known as the Bombay Stock Exchange.
  • It was created in 1986, the Sensex is the oldest stock index in India.
  • It comprised of 30 of the largest and most actively-traded stocks on the BSE, providing a gauge of India’s economy.
  • Sensex uses weighted average method for price movement calculation. That means each shares price has a weightage proportional to its market capitalization.
  • The index’s composition is reviewed in June and December each year.
  • Five criteria for being listed in BSE Sensex:
  1. It should be listed in India on BSE
  2. It should be a large-to mega-cap company
  3. The stock should be relatively liquid
  4. The company should generate revenue from core activities
  5. It should keep the sector balanced broadly in line with the Indian equity market.

About NSE Nifty Index

Nifty is the stock market index for National Stock Exchange (NSE).

Unlike BSE Sensex it consists of weighted average of 50 of the largest Indian companies.

30-Share Index (BSE Sensex) economy