BSE Limited has marked a historic milestone as the SENSEX, India’s first equity benchmark, completes 40 years of tracking the nation’s capital markets. Introduced in 1986, the index has become a defining barometer of India’s economic and market evolution.
Designed to represent the broader equity landscape, the SENSEX comprises 30 leading companies across key sectors including financial services, IT, energy, FMCG, healthcare, commodities, and industrials. Together, these constituents account for nearly 40% of India’s total market capitalisation, making the index one of the most influential indicators of market performance. The index undergoes a structured review twice a year, in June and December, to ensure continued relevance.
Originally calculated using a market-cap-weighted method, the SENSEX transitioned to a free-float market capitalisation methodology in September 2003, aligning with global index standards. Today, it is among the most widely tracked indices in India, with more than 20 ETFs and index funds collectively managing assets worth approximately ₹2.5 lakh crore. Its derivatives segment, particularly index options, has seen rapid growth over the past two years.
Since inception, the SENSEX has delivered a compounded annual growth rate of 13.4%, closely mirroring India’s nominal GDP growth of nearly 13% over the same period. Through economic reforms, global disruptions, and multiple market cycles, the index has consistently reflected the country’s financial progress.
The anniversary event was attended by SEBI Chairman Shri Tuhin Kanta Pandey and BSE MD & CEO Shri Sundararaman Ramamurthy, along with key market stakeholders, underscoring the SENSEX’s enduring role in India’s capital market ecosystem.
