The Sensex (S&P BSE Sensex) is a benchmark index representing the top 30 largest and most actively traded stocks listed on the Bombay Stock Exchange (BSE), India's oldest stock exchange.
The index is free-float market-capitalisation-weighted. It is considered a gauge of the Indian economy and is closely watched by investors, analysts, and policymakers alike.
Despite a few slight pullbacks, the Sensex has been marching higher since its March 2020 lows at the start of the Covid-19 pandemic. Since then, the index's rise has been impressive. At the time of latest update (Oct 2024), the Sensex is up more than 23% in the last 12 months.
BSE Sensex Daily Movers
BSE SENSEX Price Forecast
Launched in 1986, the Sensex is a more concentrated representation of the Indian stock market compared to the broader BSE indices. It is often used as a proxy for the performance of the Indian economy and is a popular benchmark for investors seeking to track the performance of the BSE's largest and most influential companies.
Bull Argument: The S&P BSE Sensex, as a benchmark index representing India's largest and most valuable companies, benefits from the country's strong economic growth potential. India's large population, growing middle class, and favourable demographics position it well for long-term development. The government's focus on infrastructure development, digitalisation, and economic reforms also supports the Sensex's bullish outlook. In recent comments, Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, said that “with Q1FY25 earnings now behind, [Indian] domestic equities would take cues from global factors for direction.” Meanwhile, Osho Krishan, a senior analyst at Angel One, told investors that momentum in the banking sector “could significantly boost market sentiments”
Bear Argument: While the Sensex is generally optimistic, several factors could pose downside risks. These include global economic downturns, trade tensions, or geopolitical events. These factors impact India's economy and, consequently, the Sensex. Domestic challenges such as inflation, unemployment, and political instability could also weigh on the Sensex's performance, while an overreliance on certain sectors, such as information technology or banking, could expose the Sensex to sector-specific risks.
BSE Sensex Top 10 Companies
The Sensex is operated by Standard & Poor's (S&P). The index represents the largest sectors in the Indian economy, encompassing industries such as banking, finance, technology, automotive, pharmaceuticals, and consumer goods.
The Sensex is reviewed semi-annually every year in June and December.
| Company | Market Cap (Q4 '24) |
|---|---|
| Reliance Industries | $242.25 Billion |
| Tata Consultancy Services | $192.75 Billion |
| HDFC Bank | $154.74Billion |
| Bharti Airtel | $107.48 Billion |
| ICICI Bank | $100.90 Billion |
| Infosys | $92.83Billion |
| State Bank of India | $86.84Billion |
| Hindustan Unilever | $77.78 Billion |
| ITC | $75.48 Billion |
| Larsen & Toubro | $59.05 Billion |
Top 5 Constituents
The Appeal of The SENSEX Index
The S&P BSE Sensex, as a comprehensive index of the BSE's leading 30 companies, presents unique investment prospects for investors. But first, it is important to make sure your investment criteria match:
Investors Seeking Indian Exposure: The Sensex is a benchmark index representing India's largest and most valuable companies. As a result, it offers investors a way to invest in the Indian stock market. Those with an interest in the market and who understand how it operates may be more suited to investing in a Sensex index fund.
Investors Who Believe in India's Growth: Any investor in an index, of course, has to also believe in the growth of the country's economy. Those who are optimistic about India's long-term economic potential may find the Sensex an attractive investment opportunity. India's large population, growing middle class, and government's focus on economic reforms make it a compelling market for investors.
Investors Interested in Emerging Markets: The Sensex is a key component of the emerging markets landscape. Investors seeking exposure to emerging markets, particularly those with a focus on Asia, may consider the Sensex. India is considered by some as the “perfect emerging market.”
Investors Looking for Dividend Income: Many Sensex constituents pay dividends, making it a potential source of income for investors seeking dividend-paying stocks.
Risk Tolerance: Investing in the Sensex involves some risk, and its performance can be volatile. Investors should have a medium risk tolerance if they consider an index fund tracking the Sensex.
Indices – Daily Movers