also known as the S&P BSE Sensex index, is the benchmark index of
the Bombay Stock Exchange in India. Sensex includes 30 of the biggest
and most actively-traded stocks on the BSE, giving an exact scale of
index’s work is reviewed in June and December every year. Initially
organized in 1986, the Sensex is the oldest stock index in India.
Analysts and trader use the Sensex to see the overall growth, growth
of particular industries, and booms and busts of the Indian economy.
word Sensex was invented by stock market analyst Deepak Mohoni and is
a portmanteau of the terms Sensitive and Index. The constituents of
the index are chosen by the S&P BSE index Committee based on five
principles: it should be listed in India on BSE, it should be a
large-to mega-cap stocks, it should be relatively liquid, it should
create revenue from core activities, it should keep the sector
supported broadly in line with the Indian equity market. The BSE
Sensex’s dropped by 12.7% – its worst fall – on April 18, 1992, after
revelations of a scam in which a prominent broker siphoned money from
the public banking sector to pump money into the stock.
BSE Sensex experienced tremendous growth since India began up its
economy in 1991. The growth has mainly occurred in the 21st century,
growing from a close of 3,377.28 in 2002 to one of 20,286.99 in 2007
to a high of 38896.63 in August 2018. The growth has mainly occurred
on the back of an increase in India’s total national product growth
since the turn of the century, which listed as one of the fastest in
According to International Monetary Fund calculations, India’s GDP increased fast between 2002 and 2007, and then stunted a bit in 2008, in stride with the global financial pressure of that year, but has been back on a stable growth rate since 2010. India’s growing GDP owes much credit to the growth of the Indian middle class, which were at less than 1 percent of the global middle class in 2000 but is expected to account for 10 percent by 2020. The middle class is a significant operator of customer demand.