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|This article describes an index that measures the performance of an exchange, industry or a geographic region. View articles referencing this index.|
The BSE Sensex is a market capitalized index that tracks 30 stocks from the Bombay Stock Exchange, which are representative of the stocks from various sectors of the Bombay Stock Exchange. They account for approximately one fifth of the capitalization of the exchange. It is the second largest exchange of India in terms of volume and first in terms of shares listed. The BSE Sensex has more than ten thousand shares listed.
The index is calculated based on a free-float capitalization method; a variation of the market cap method. Instead of using a company's outstanding shares it uses its float, or shares that are readily available for trading. The free-float method, therefore, does not include restricted stocks, such as those held by company insiders.
The Free float Adjustment factor, or FAF for short, represents the proportion of shares that is freefloated as a percentage of issued shares and then its rounded up to the nearest mulitple of 5% for calculation purposes. To find the free-float capitalization of a company, first find its market cap (number of outstanding shares x share price) then multiply its free-float factor.
The free-float factor is determined by the percentage of floated shares to outstanding. For example, if a company has a float of 4 million shares and outstanding shares of 5 million, the percent of float to outstanding is 80%. A company with an 80% free float falls in the 75-80% free-float factor, or 0.80, which is then multiplied by its market cap. For example: $120 million (12 million shares at $10/share) x 0.80 = $96 million.
The composition of the BSE Sensex, as of August 27, 2008:
|COMPANY NAME||TICKER on the BSE||Industry||Free float Factor|
|ACC Limited||BY:500410||Housing Related||0.60|
|Bharat Heavy Electricals Limited||BY:500103||Capital goods||0.35|
|Bharti Airtel Ltd||BY:532454||Telecom||0.35|
|DLF Ltd.||BY:532868||Housing Related||0.15|
|Grasim Industries Ltd.||BY:500300||Diversified||0.75|
|HDFC Bank (HDB)||BY:500180||Finance||0.85|
|Hindalco Industries Ltd||BY:500440||Metals, Metal Products and Mining||0.70|
|Hindustan Unilever Ltd||BY:500696||Fast Moving Consumer Goods||0.50|
|ICICI Bank (IBN)||BY:532174||Finance||1.00|
|Infosys Technologies (INFY)||BY:500209||Information Technology||0.85|
|ITC Ltd||BY:500875||Fast Moving Consumer Goods||0.70|
|Jaiprakash Associates Ltd.||BY:532532||Housing Related||0.60|
|Larsen & Toubro Limited||BY:500510||Capital Goods||0.90|
|Mahindra & Mahindra Ltd||BY:500520||Transport Equipments||0.80|
|Maruti Suzuki India Ltd||BY:532500||Transport Equipments||0.50|
|National Thermal Power Corporation Ltd||BY:532555||Power||0.15|
|Oil and Natural Gas Corporation||BY:500312||OIl & Gas||0.20|
|Ranbaxy Laboratories Ltd.||BY:500359||Healthcare||0.70|
|Reliance Communications (532712-BY)||BY:532712||Telecom||0.35|
|Reliance Industries Limited (RELIANCE-IN)||BY:500325||Oil & Gas||0.50|
|Reliance Infrastructure Ltd.||BY:500390||Power||0.65|
|Satyam Computer Services (SAY)||BY:500376||Information Technology||0.95|
|Sterlite Industries (India) Ltd.||BY:500900||Metals, Metal Products and Mining||0.40|
|Tata Consultancy Services Limited||BY:532540||Information Technology||0.25|
|Tata Motors (TTM)||BY:500570||Transport Equipments||0.60|
|Tata Power Company Ltd.||BY:500400||Power||0.70|
|Tata Steel Limited (500470-BY)||BY:500470||Metals, Metal Products and Mining||0.70|
|Wipro (WIT)||BY:507685||Information Technology||0.20|