Learn About Top 30 Listed Companies In BSE
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Heard about the BSE exchange? Students, especially from the Commerce background, must be familiar with this term. Well, BSE is the acronym for Bombay Stock Exchange. In this stock market, since the year 1986, 30 well-established and financially sound companies have been listed. These 30 companies are the pivotal players. Some of the companies from the year 1979 were removed, and new companies were added to replace them.
In this content, we will take up the discussion about the top 30 listed companies in BSE, their per capita share in the market, and other such interesting facts that will be excavated. We will also provide some highlighted trends of the stock exchange in specific years. So, without further ado, let us start with BSE's top 30 shares.
The list of top 30 companies in BSE Sensex indicating their sector of function is mentioned down below.
Top 30 Listed Companies in BSE
Well, these were the list of Sensex’s top 30 companies. Now, we will know more about BSE Sensex for making the base of the students stronger in terms of the general knowledge of the students.
Pulse of the Domestic Trade Market of India – BSE Sensex
The BSE SENSEX is also known as the S&P Bombay Stock Exchange Sensitive Index or can be simply the SENSEX. This is a type of free-float market that has a market-weighted stock market index of around 30 build-up companies that are financially sound and structured. They are listed on the Bombay Stock Exchange.
These 30 big companies, which play an important role in the stock market, represent various industrial sectors of India. This BSE stock exchange is rightly regarded as the pulse of the domestic stock markets in our country.
The usual trading time of BSE Sensex is 9:15 am to 03:30 pm, and it operates from Monday to Friday.
Sensex – A Combination of Two Words
The term known as ‘Sensex’ was discovered by Deepak Mohini. Mr. Mohini was a stock market analyst in the year 1989. In that period of time, the BSE Sensitive Index was about 750 points. ‘Sens’ in Sensitive and ‘ex’ Index were combined to form the term ‘Sensex’.
BSE Stock Market - Calculations, Methodologies, and Current Development
The BSE stock market has its own review system and modification in order to be sure that the current economic conditions are in sync with the stock market. For this, the BSE verifies the index. The index of the BSE stock market is calculated based on the method of free-float capitalization; this is a variation that is present in the market capitalization method.
In this process, instead of using the company's outstanding shares, the company uses its float price or those shares which are readily available for the purpose of trading in the market.
Free Floating capital means the total capitalization less the Directors shareholding. In this free float capitalization system, the level of the index at any point in time will reflect the free-float market value where these 30 big constituent stocks are present relative to a specific base period.
And how is the market capitalization of a company determined? This is determined by multiplying the price of the company’s stock by the number of shares that are issued by the corporate actions or by the replacement of scrips.
Presently, the index has increased as much as twenty-five times from June in the year 1990. The long-run rate of return of the BSE SENSEX operates to be 18.6% calculated per annum.
Downfall in 2020 to Uprise in 2021 of BSE
Talking about last year, on the 9th March 2020, the Sensex had a great fall down by 1941.67 points. This happened due to the outbreak of the pandemic – Coronavirus. In reality, the downfall happened not only for the coronavirus crisis but also for the Yes Bank crisis which happened during the same time. This was one of the worst single-day falls in stock market history. During this time, the investors lost ₹6.50 lakh crores (which was approximately USD 91 billion). Further on, on 12th March 2020, the stock market plunged down by 2919.26 points. This fall which happened in the month of March wiped off around ₹ 11.2 lakh crores wealth (approximately $160 billion).
On 13th March, which was a Friday, the trading was halted for around 45 minutes for the first time in the last 12 years due to a lower circuit. This time Sensex touched a low of 29,687.52 down by 3090.62 points (or around 9.43%). Luckily, after that 45-minute halt, the index witnessed the biggest intraday recovery after the fall by around 5,380 points to end up by 1325 points for the coverage.
With this continuing losing streak, wealth which was worth ₹14.22 lakh crore (approximate to $200 Billion) was totally erased on 23rd March 2020 as the BSE SENSEX lost around 3,934.72 points at the end which came to 25,981.24.
Proceeding ahead, on the 21st January 2021, the Sensex has recovered to 50,167.71.
Check Out the Recently Recorded Values
BSE is India’s reputed stock market. In this stock market, various MNC keeps their investment ever-flowing. We common people somewhat feel exposed while investing in these stock markets. And why should we not be? As India is not a stable economy, rather a developing economy, the growth is ever fluctuating in India, so it is obvious to feel at risk while investing. But one with good knowledge about the stock market or one who can hire a trustable and professional broker can easily earn profit in the stock market. So, the advice is always to stay vigilant while investing in BSE or any other stock market.
Did You Know?
The Bombay Stock Exchange, abbreviated as BSE, is the oldest stock exchange in the continent of Asia.
Premchand Roychand founded the BSE or Bombay Stock Exchange in Dalal Street in 1854.
BSE has more than 5000 companies listed in it, and thus it is the biggest stock exchange in the world.
Harshad Mehta's scam, which happened in the year1992 led to the rise of the Security and Exchange Board of India. After which, the Government gave additional statutory power to SEBI from the year 1995.
Other than NSE and BSE in India, there are nine trading exchanges in India. They are as follows:
Bombay Stock Exchange (BSE)
Calcutta Stock Exchange
India International Exchange (India INX)
Indian Commodity Exchange
Metropolitan Stock Exchange
Multi Commodity Exchange of India
National Commodity and Derivatives Exchange
National Stock Exchange (NSE)
NSE IFSC Ltd.
In a stock market, the bull market and the bear market are the most used words in the stock market.
A bull raises its horns to defend or fight against the enemy, and thus it symbolizes the rising situation of the market. While, in contrast to that, when the stock price falls, it is said to be the bear trend. While confronting the bull, it has its palm towards the ground, and thus the bear market symbolizes a falling market.
Big Indian companies, namely Tata Consultancy Services (abbreviated as TCS), Reliance Industries Ltd (abbreviated as RIL), or HDFC, have very high market capitalization which is higher than the combined market capitalization of all the companies in the Karachi Stock Exchange (KSE). This is how financially strong and sound our Indian companies are.
FAQs on List Of Top 30 Companies Listed In The BSE Sensex
1. How is Sensex calculated?
The value of the Sensex is Total free-float market capitalization divided by the Base market capitalization multiplied by Base period index value. This base period (which is the year) for the Sensex calculation is 1978-79. The base value index is 100 here. Using this above-mentioned formula, one can easily estimate the value of BSE Sensex.
2. What is the full form of SENSEX?
Sensex stands for 'Stock Exchange Sensitive Index'; this term is for the stock market index for the Bombay Stock Exchange.
3. Which one is better to invest in? NSE or BSE?
The more practical way of answering this will be – it depends on who is investing. BSE is more suitable for beginners who just entered the stock market. While NSE is preferred by seasoned investors and traders.
