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36-521: The BSE SENSEX (also known as the S&;P Bombay Stock Exchange Sensitive Index or simply SENSEX ) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange . The 30 constituent companies which are some of the largest and most actively traded stocks, are representative of various industrial sectors of

72-420: A 33-month low at 32,778.14. The fall wiped off ₹11.2 lakh crores wealth ($ 160 billion). On Friday, 13 March, trading was halted for 45 minutes for the first time in 12 years since January 2008 due to lower circuit. Sensex touched a low of 29,687.52 down by 3090.62 points (or 9.43%). However, after the 45-minute halt, the index saw biggest intra-day recovery by 5,380 points to end up by 1325 points. Continuing

108-536: A month later, on 4 June 2009, the SENSEX would cross the 15,000 mark. However, the SENSEX remained volatile during the summer of 2009. The SENSEX plunged by 869.65 points on 6 July 2009, the day of Union Budget presentation in Parliament on concerns over high fiscal deficit. This was the biggest Budget-day loss for the index. On 17 August 2009, the SENSEX lost 626.71 points. Once again, the SENSEX would recover from

144-528: A return to British-era time zones, but the recommendations were not adopted. In 2001, the government established a four-member committee under the Ministry of Science and Technology to examine the need for multiple time zones and daylight saving. The findings of the committee, which were presented to Parliament in 2004 by the Minister of Science and Technology, Kapil Sibal , did not recommend changes to

180-477: A separate time zone, known as the Chaibagan or Bagan time ('Tea Garden Time'), which is one hour ahead of IST. Still, Indian Standard Time remains the only officially used time. In 2014, Chief Minister of Assam Tarun Gogoi started campaigning for another time zone for Assam and other northeastern states of India. However, the proposal would need to be cleared by the union government . In June 2017,

216-400: Is taken as the standard time as it passes through almost the centre of India. To communicate the exact time to the people, the exact time is broadcast over the national All India Radio and Doordarshan television network. Telephone companies have dedicated phone numbers connected to mirror time servers that also relay the precise time. Another increasingly popular means of obtaining the time

252-424: Is the free-float weighting. With this method a float factor is assigned to each stock to account for the proportion of outstanding shares that are held by the general public, as opposed to "closely held" shares owned by the government, royalty, or company insiders (see float ). For example, if for some stock 15% of shares are closely held, and the other 85% are publicly held, the float factor will be 0.85, by which

288-563: Is the time zone observed throughout the Republic of India , with a time offset of UTC+05:30 . India does not observe daylight saving time or other seasonal adjustments. In military and aviation time , IST is designated E* ("Echo-Star"). It is indicated as Asia/Kolkata in the IANA time zone database . The Indian Standard Time was adopted on 1 January 1906 during the British era with

324-482: The Department of Science and Technology (DST) indicated that it is once again studying the feasibility of two time zones for India. Proposals for creating an additional Eastern India Time (EIT at UTC+06:00 ), shifting default IST to UTC+05:00 and daylight saving (Indian Daylight Time for IST and Eastern India Daylight Time for EIT) starting on 14 April ( Ambedkar Jayanti ) and ending on 2 October ( Gandhi Jayanti )

360-519: The NYSE Amex Composite Index (XAX) is composed of all of the securities traded on the exchange including stocks and American depositary receipts (ADRs). The weighting of each component shifts with changes to each securities' price and the number of shares outstanding. The index moves in line with changes in price of the component. Stock market indices are a type of economic index . A common version of capitalization weighting

396-525: The Indian economy. Published since 1 January 1986, the S&P BSE SENSEX is regarded as the pulse of the domestic stock markets in India. The base value of the SENSEX was taken as 100 on 1 April 1979 and its base year as 1978–79 . On 25 July 2001 BSE launched DOLLEX- , a dollar-linked version of the SENSEX. The term Sensex was coined by Deepak Mohoni , a stock market analyst in 1989. BSE Sensitive Index then

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432-461: The Indian markets. However the proposals of SEBI were not clear and this led to a knee-jerk crash when the markets opened on the following day (17 October 2007). Within a minute of opening trade, the SENSEX crashed by 1,744 points or about 9% of its value – the biggest intra-day fall in Indian stock markets in absolute terms until then. This led to the automatic suspension of trade for one hour. Finance Minister P. Chidambaram issued clarifications, in

468-580: The SENSEX lost 833.98 points, when Reliance Power fell below its IPO price in its debut trade after a high-profile public offer. The free fall of the SENSEX accelerated in March 2008. The month started out with the Sensex losing 900.84 points on 3 March 2008, on concerns emanating from growing credit losses in US. This would be the first of four one-day falls of greater than 700 points during the month. On 13 March 2008,

504-514: The SENSEX plummeted another 770.63 points on global economic jitters. The month ended with the SENSEX shedding 726.85 points on 31 March 2008, after heavy selling in blue-chip stocks on global economic fears. The SENSEX dropped by 749.05 points on 7 January 2009, when the Satyam fraud came to light. The index crossed the historical mark of 30,000 after repo rate cut announcement by RBI. The index plummeted by over 1,624.51 points on 24 August 2015,

540-552: The United States, capitalization-weighted indices tended to use full weighting, i.e., all outstanding shares were included, while float-weighted indexing has been the norm in other countries, perhaps because of large cross-holdings or government ownership. More recently, many of the U.S. indices, such as the S&P 500, have been changed to a float -adjusted weighting which makes their calculation more consistent with non-U.S. indices. An index may also be classified according to

576-510: The company's market capitalization will be multiplied before weighting its value against the rest of the index. In other words, the number of shares used for calculation is the number of shares "floating", rather than outstanding. An index that is weighted in this manner is said to be "float-adjusted" or "float-weighted", in addition to being cap-weighted. For example, the S&;P 500 index is both cap-weighted and float-adjusted. Historically, in

612-505: The end of the session. The SENSEX recovered to close at 17,605.40 after it tumbled to the day's low of 16,963.96, on high volatility as investors panicked following weak global cues amid fears of a recession in US. The next day, the BSE SENSEX index went into a free fall. The index hit the lower circuit breaker in barely a minute after the markets opened at 10 am. Trading was suspended for an hour. On reopening at 10.55 am IST ,

648-447: The international markets, the BSE SENSEX fell by 615 points in a single day on 1 August 2007. On 16 October 2007, SEBI (Securities & Exchange Board of India) proposed curbs on participatory notes which accounted for roughly 50% of FII investment in 2007. SEBI was not happy with P-notes because it was not possible to know who owned the underlying securities, and hedge funds acting through P-notes might therefore cause volatility in

684-419: The level of index at any point of time reflects the free float market value of 30 constituent stocks relative to a base period. The market capitalisation of a company is determined by multiplying the price of its stock by the number of shares issued by corporate actions, replacement of scrips. The index has increased by over twenty five times from June 1990 to the present. Using information from April 1979 onwards,

720-557: The long-run rate of return on the S&P BSE SENSEX works 18.6% per annum. The following is a timeline on the rise of the SENSEX through Indian stock market history. On 22 May 2006, the SENSEX plunged by 1,100 points during intra-day trading, leading to the suspension of trading for the first time since 17 May 2004. The volatility of the SENSEX had caused investors to lose ₹ 6 lakh crore (US$ 131 billion) within seven trading sessions. The then Finance Minister of India, P. Chidambaram , made an unscheduled press statement when trading

756-473: The losing streak, wealth worth ₹14.22 lakh crore ($ 200 Billion) was erased on 23 March 2020 as BSE SENSEX lost 3,934.72 points to end at 25,981.24. As on 21 January 2021, Sensex has recovered to 50,167.71. On the following dates, the SENSEX index suffered major single-day falls at close (of 430 or more points): Tax cut buzz. US Fed rate cut. US-China trade hopes. Corporate results being better than expected. Capitalization-weighted index For example,

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792-486: The market saw its biggest intra-day fall when it hit a low of 15,332, down 2,273 points. However, after reassurance from the Finance Minister of India , the market bounced back to close at 16,730 with a loss of 875 points. Over the course of two days, the BSE SENSEX in India dropped from 19,013 on Monday morning to 16,730 by Tuesday evening or a two-day fall of 13.9%. Less than a month later, on 11 February 2008,

828-423: The meantime, that the government was not against FIIs and was not immediately banning PNs. After the market opened at 10:55 am, the index staged a comeback and ended the day at 18715.82, down 336.04 from the last day's close. However, this would not be the end of the volatility. The next day (18 October 2007), the SENSEX tumbled by 717.43 points – 3.83 per cent – to close at 17,998.39 points. The slide continued

864-687: The method used to determine its price. In a price-weighted index such as the Dow Jones Industrial Average , the price of each component stock is the only consideration when determining the value of the index. Thus, price movement of even a single security will heavily influence the value of the index even though the dollar shift is less significant in a relatively high-value name. In a fundamentally weighted index, stocks are weighted by fundamental factors like sales or book value. Indian Standard Time Indian Standard Time ( IST ), sometimes also called India Standard Time ,

900-631: The next day (19 October 2007), when the SENSEX fell 438.41 points to settle at 17,559.98 to the end of the week, after touching the lowest level of that week at 17,226.18 during the day. After detailed clarifications from the SEBI chief M. Damodaran regarding the new rules, the market made an 879-point gain on 23 October, thus signalling the end of the PN crisis. On 18 May 2009, the SENSEX surged up 2,110.79 points to close at 14,285.21, from its previous closing of 12,174.42, for its largest single day rally. Less than

936-625: The phasing out of its precursor Madras Time (Railway Time), and after Independence in 1947 , the Union government established IST as the official time for the whole country, although Kolkata and Mumbai retained their own local time (known as Calcutta Time and Bombay Time ) until 1948 and 1955, respectively. The Central observatory was moved from Madras to a location at Shankargarh Fort in Allahabad district , so that it would be as close to UTC+05:30 as possible. Daylight Saving Time (DST)

972-502: The sun rising and setting almost two hours earlier on India's eastern border than in the Rann of Kutch in the far west. Inhabitants of the northeastern states have to advance their clocks with the early sunrise to avoid the extra consumption of energy after daylight hours. In the late 1980s, a team of researchers proposed separating the country into two or three time zones to conserve energy. The binary system that they suggested involved

1008-417: The then worst one-day point plunge in the index's history. On 9 March 2020, Sensex tumbled down by 1941.67 points amid the fears of coronavirus pandemic and Yes Bank crisis. This was the second worst single-day fall in the history, where the investors lost ₹6.50 lakh crores ($ 91 billion). While on 12 March 2020, the index plunged down by 2919.26 points, the second–worst fall in the history, ending in red to

1044-595: The unified system, stating that 'the prime meridian was chosen with reference to a central station, and that the expanse of the Indian State was not large.' Though the government has consistently refused to split the country into multiple time zones, provisions in labour laws such as the Plantations Labour Act, 1951 allow the union and state governments to define and set the local time for a particular industrial area. In Assam , tea gardens follow

1080-586: The volatility, and on 16 October 2006, the SENSEX closed at an all-time high of 12,928.18 with an intra-day high of 12,953.76. This was a result of increased confidence in the economy and reports that India's manufacturing sector grew by 11.1% in August 2006. On 23 July 2007, the SENSEX touched a new high of 15,733 points. On 27 July 2007 the SENSEX witnessed a huge decline because of selling by Foreign Institutional Investors and global cues to come back to 15,160 points by noon. Following global cues and heavy selling in

1116-439: The volatility. On 7 September 2009, the SENSEX crossed the 16,000 mark, closing at 16,016.32 points. The index would gain 3,000 points over the next 12 months, as the SENSEX crossed the 19,000 mark on 13 September 2010, closing at 19,208.33 points. In the third week of January 2008, the SENSEX experienced huge falls along with other markets around the world. On 21 January 2008, the SENSEX saw its highest ever loss of 1,408 points at

BSE SENSEX - Misplaced Pages Continue

1152-557: Was at about 750 points. Sensex is a portmanteau of the words Sens itive and Ind ex . The BSE has some reviews and modifies its composition to be sure it reflects current market conditions. The index is calculated based on a free float capitalisation method, a variation of the market capitalisation method. Instead of using a company's outstanding shares it uses its float , or shares that are readily available for trading. Free Floating capital implies total capitalization less Directors shareholding. As per free float capitalisation methodology,

1188-697: Was chosen as the standard meridian for the whole country as it is located centrally between western India ( local time UTC +05:00 ) and northeastern India ( local time UTC +06:00 ). Currently, the Council of Scientific and Industrial Research- National Physical Laboratory (CSIR-NPL) maintains the Indian Standard Time with the help of the Allahabad Observatory . The country's east–west distance of more than 2,933 kilometres (1,822 mi) covers over 29° of longitude, resulting in

1224-668: Was submitted to DST for consideration. Official time signals are generated by the Time and Frequency Standards Laboratory at the National Physical Laboratory in New Delhi , for both commercial and official use. The signals are based on atomic clocks and synchronised with the worldwide system of clocks that support Coordinated Universal Time . Features of the Time and Frequency Standards Laboratory include: IST

1260-526: Was suspended to assure investors that nothing was wrong with the fundamentals of the economy, and advised retail investors to stay invested. When trading resumed after the reassurances of the Reserve Bank of India and the Securities and Exchange Board of India (SEBI), the SENSEX managed to move up 700 points, but still finished the session 457 points in the red. The SENSEX eventually recovered from

1296-602: Was used briefly during the China–India War of 1962 and the Indo-Pakistani Wars of 1965 and 1971 . Indian Standard Time is calculated from the reference longitude of IST at 82°30'E passing near Mirzapur Clock Tower . In 1905, the meridian passing east of Allahabad was declared as a standard time zone for British India and was declared as IST in 1947 for the Dominion of India . This longitude of 82°30'E

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