The BSE Sensex, or the S&P BSE Sensex Index, is one of the most popular and widely tracked stock market indices in India. It represents the performance of 30 large and well-established companies listed on the Bombay Stock Exchange (BSE) Sensex, covering various sectors of the Indian economy. The BSE Sensex was launched in 1986 with a base value of 100, and since then it has witnessed many changes in its composition, reflecting the dynamic nature of India’s corporate sector.
In this blog post, we will explore the following aspects of the companies listed in the BSE Sensex:
- What are the criteria for selecting companies for BSE Sensex?
- Which are the companies listed in BSE Sensex?
- Why are these companies important for India?
Contents
What are the criteria for selecting companies for BSE Sensex?
The companies that are included in the BSE Sensex are selected based on some criteria such as:
- Market capitalization: The companies should have a high market value and liquidity in the market. Market capitalization is calculated by multiplying the number of outstanding shares by the current market price of each share. The higher the market capitalization, the larger the company and its influence on the index.
- Industry representation: The companies should represent the key sectors of the Indian economy and reflect its diversity and growth potential. The sectors that are currently represented in the BSE Sensex are banking, finance, IT, telecom, FMCG, pharma, auto, engineering, oil and gas, power, cement, etc. The industry representation ensures that the index captures the overall performance of the Indian economy and not just a few sectors.
- Trading frequency: The companies should have a high trading volume and turnover in the market. Trading volume is the number of shares traded in a given period of time, while turnover is the value of shares traded in a given period of time. The higher the trading volume and turnover, the more liquid and active the company and its impact on the index.
- Track record: The companies should have a stable and consistent financial performance and growth over time. The track record is measured by various parameters such as revenue, profit, earnings per share, dividend, return on equity, etc. The better the track record, the more reliable and trustworthy the company and its influence on the index.
BSE Sensex
The BSE Sensex is revised semi-annually in June and December, and any changes in its composition are announced by the BSE. BSE Sensex is calculated using the free-float market capitalization method, which means that only the shares that are available for trading in the market are considered for the index calculation. The BSE Sensex is also adjusted for corporate actions such as stock splits, dividends, bonus issues, rights issues, etc.
Which are the Companies Listed in BSE Sensex?
As of June 2023, there are 30 companies listed in the BSE Sensex, representing various sectors such as banking, finance, IT, telecom, FMCG, pharma, auto, engineering, oil and gas, power, cement, etc. The following table shows the list of these companies along with their ticker symbols, sectors and date of inclusion in the BSE Sensex:
| Sr. No. | Company Name | Industry | Listing Date |
|---|---|---|---|
| 1 | Tata Consultancy Services | Information Technology | 25-Aug-2004 |
| 2 | Reliance Industries | Conglomerate | 03-Nov-1995 |
| 3 | HDFC Bank | Banking | 08-Nov-1995 |
| 4 | Housing Development Finance Corporation | Finance | 23-Jul-1996 |
| 5 | Infosys | Information Technology | 08-Feb-1995 |
| 6 | ICICI Bank | Banking | 17-Sep-1997 |
| 7 | Bharti Airtel | Telecommunications | 14-Jun-2001 |
| 8 | Hindustan Unilever | Consumer Goods | 06-Jul-1995 |
| 9 | Larsen & Toubro | Engineering & Construction | 23-Jun-1998 |
| 10 | State Bank of India | Banking | 01-Mar-1995 |
| 11 | Kotak Mahindra Bank | Banking | 20-Dec-1995 |
| 12 | Mahindra & Mahindra | Automobile | 10-Jul-1996 |
| 13 | Asian Paints | Paints | 31-May-1995 |
| 14 | ITC | Conglomerate | 23-Aug-1995 |
| 15 | Axis Bank | Banking | 16-Mar-1998 |
| 16 | Sun Pharmaceutical Industries | Pharmaceuticals | 08-Jul-1994 |
| 17 | NTPC | Power | 05-Nov-2004 |
| 18 | Bajaj Finance | Finance | 01-Apr-2003 |
| 19 | Tata Motors | Automobile | 22-Jul-1998 |
| 20 | Maruti Suzuki India | Automobile | 09-Jul-2003 |
| 21 | HCL Technologies | Information Technology | 06-Jan-2000 |
| 22 | Bajaj Finserv | Finance | 26-May-2008 |
| 23 | Oil and Natural Gas Corporation | Oil & Gas | 19-Jul-1995 |
| 24 | UltraTech Cement | Cement | 24-Jul-2000 |
| 25 | Power Grid Corporation of India | Power | 05-Oct-2007 |
| 26 | Titan Company | Retail | 24-Sep-2010 |
| 27 | Wipro | Information Technology | 08-Nov-1995 |
| 28 | Coal India | Mining | 04-Nov-2010 |
| 29 | Dr. Reddy’s Laboratories | Pharmaceuticals | 30-May-2003 |
| 30 | Tech Mahindra | Information Technology | 06-Aug-2006 |
Let us look at some of the details and highlights of these companies:
Asian Paints:
Asian Paints is the largest paint company in India and the third largest in Asia. It was founded in 1942 by four friends who started a small paint business in Mumbai. Today, it has a presence in over 60 countries and offers a wide range of products such as decorative paints, industrial coatings, home improvement products, etc. It has a market capitalization of over Rs.3 lakh crore and a revenue of over Rs.20,000 crore as of March 2021.
Axis Bank:
Axis Bank is the third largest private sector bank in India. It was established in 1993 as UTI Bank and later renamed as Axis Bank in 2007. Axis Bank offers a range of banking and financial services such as retail banking, corporate banking, treasury, investment banking, etc. It has over 4,800 branches and over 17,000 ATMs across India. It has a market capitalization of over Rs.3 lakh crore and a revenue of over Rs.70,000 crore as of March 2021.
Bajaj Auto:
Bajaj Auto is one of the leading manufacturers of two-wheelers and three-wheelers in India and the world. It was founded in 1945 by Jamnalal Bajaj and is part of the Bajaj Group. It has a portfolio of brands such as Pulsar, Avenger, Platina, Discover, etc. Bajaj Autoalso has a stake in KTM, Husqvarna and Triumph motorcycles. Also Bajaj Auto has a market capitalization of over Rs.1 lakh crore and a revenue of over Rs.25,000 crore as of March 2021.
Bajaj Finance:
The Bajaj Finance is one of the largest non-banking financial companies (NBFCs) in India and a subsidiary of Bajaj Finserv. It was founded in 1987 and provides various consumer and business loans such as personal loans, home loans, vehicle loans, business loans, etc. Bajaj Finance also offers digital payment solutions such as Bajaj Pay and EMI cards. It has a market capitalization of over Rs.4 lakh crore and a revenue of over Rs.20,000 crore as of March 2021.
Bajaj Finserv:
Bajaj Finserv is the holding company for the financial services businesses of the Bajaj Group. It was formed in 2007 after the demerger of Bajaj Auto’s financial services business. Bajaj Finserv has three main subsidiaries: Bajaj Finance, Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. It also has interests in asset management, wealth management, broking, etc. Bajaj Finserv has a market capitalization of over Rs.2 lakh crore and a revenue of over Rs.40,000 crore as of March 2021.
Bharti Airtel:
Bharti Airtel is one of the largest telecommunications companies in India and the world. It was founded in 1995 by Sunil Bharti Mittal and is part of the Bharti Group. Bharti Airtel offers various services such as mobile telephony, broadband, digital TV, enterprise solutions, etc. It operates in over 18 countries across Asia and Africa. Bharti Airtel has a market capitalization of over Rs.4 lakh crore and a revenue of over Rs.1 lakh crore as of March 2021.
Dr Reddy’s Laboratories:
Dr Reddy’s Laboratories is one of the leading pharmaceutical companies in India and the world. It was founded in 1984 by Dr K Anji Reddy and is headquartered in Hyderabad. Dr Reddy’s Laboratories manufactures and markets a range of generic drugs, biosimilars, active pharmaceutical ingredients, etc. It also has a presence in branded formulations, over-the-counter products, diagnostics, etc. Dr Reddy’s Laboratories has a market capitalization of over Rs.1 lakh crore and a revenue of over Rs.20,000 crore as of March 2021.
HCL Technologies:
HCL Technologies is one of the leading IT services and consulting companies in India and the world. It was founded in 1976 by Shiv Nadar and is part of the HCL Group. HCL Technologies offers various services such as software development, cloud computing, digital transformation, engineering, etc. It has over 1.5 lakh employees and operates in over 40 countries. Also has a market capitalization of over Rs.3 lakh crore and a revenue of over Rs.70,000 crore as of March 2021.
HDFC:
The HDFC is one of the largest housing finance companies in India and the world. HDFC was founded in 1977 by Hasmukh Parekh and is headquartered in Mumbai. It provides various loans for housing and related purposes such as purchase, construction, renovation, etc. HDFC also has interests in banking, insurance, mutual funds, real estate, etc. It has a market capitalization of over Rs.4 lakh crore and a revenue of over Rs.40,000 crore as of March 2021.
HDFC Bank:
HDFC Bank is one of the largest private sector banks in India and the world. It was established in 1994 as a subsidiary of HDFC and is headquartered in Mumbai. HDFC Bank offers a range of banking and financial services such as retail banking, corporate banking, treasury, investment banking, etc. HDFC Bank has over 5,600 branches and over 16,000 ATMs across India. It has a market capitalization of over Rs.8 lakh crore and a revenue of over Rs.1 lakh crore as of March 2021.
Hindustan Unilever Limited:
Hindustan Unilever Limited is one of the largest FMCG companies in India and the world. It was formed in 1956 as a merger of Hindustan Vanaspati Manufacturing Company, Lever Brothers India Limited and United Traders Limited. It is a subsidiary of Unilever plc and is headquartered in Mumbai. Hindustan Unilever Limited offers a variety of products such as soap, detergent, shampoo, toothpaste, tea, coffee, ice cream, etc. under various brands such as Lux, Surf Excel, Dove, Pepsodent, Brooke Bond, Bru, Kwality Walls, etc. Hindustan Unilever Limited has a market capitalization of over Rs.6 lakh crore and a revenue of over Rs.40,000 crore as of March 2021.
ICICI Bank:
ICICI Bank is one of the largest private sector banks in India and the world. It was established in 1994 as a subsidiary of Industrial Credit and Investment Corporation of India (ICICI) and is headquartered in Mumbai. ICICI Bank offers a range of banking and financial services such as retail banking, corporate banking, treasury, investment banking, etc. It has over 5,300 branches and over 15,000 ATMs across India. ICICI Bank has a market capitalization of over Rs.6 lakh crore and a revenue of over Rs.90,000 crore as of March 2021.
IndusInd Bank:
IndusInd Bank is one of the leading private sector banks in India. It was established in 1994 by Srichand P Hinduja and is headquartered in Mumbai. It offers various banking and financial services such as retail banking.
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Conclusion
This 30 Companies are Listed in BSE Sensex till 2023.