BSE celebrates 40 years of SENSEX reflecting the evolution of India’s equity market indices

BSE Limited (BSE) today marked the 40th anniversary of the SENSEX, the equity benchmark tracking India’s capital market evolution.

Launched in 1986, the SENSEX was India’s first stock market index. It is designed to reflect the equity market through 30 constituents comprising companies across sectors such as financial services, technology, energy, FMCG, commodities, healthcare, and industrials. Representing nearly 40% of the nation’s market capitalisation, it serves as a benchmark for equity market performance. The index is reviewed biannually in June and December.

The SENSEX was originally calculated using a market-cap-weighted methodology. Since 1 September 2003, it has utilised a free-float market-cap methodology, a standard used by the majority of global equity indices. The SENSEX is among India’s most tracked benchmarks, with over 20 Exchange Traded Funds (ETFs) and index funds managing assets worth Rs 2.5 lakh crore. It also features index options contracts and has been a fast-growing index derivatives contract over the last two years.

Since its inception, the SENSEX has delivered a compounded annualised growth rate (CAGR) of 13.4%, mirroring India’s nominal Gross Domestic Product (GDP) growth of nearly 13% during the same period. The index has functioned through various market cycles and reforms, serving as a barometer of economic progress and market activity.

The milestone was noted in the presence of Shri Tuhin Kanta Pandey, chairman, Securities and Exchange Board of India (SEBI), and Shri Sundararaman Ramamurthy, Managing Director & Chief Executive Officer (MD & CEO), BSE Ltd., along with market participants and stakeholders.

Shri Tuhin Kanta Pandey, Chairman, SEBI, said, “Over the last four decades, the SENSEX has served as a market indicator, mirroring India’s economic transformation and the development of our capital markets.”

Shri Sundararaman Ramamurthy, MD & CEO, BSE, added, “This anniversary celebrates India’s capital market journey. From a closed market to a technology-driven ecosystem, the SENSEX has chronicled India’s growth. BSE remains committed to meeting market requirements and reflecting the economic landscape.”