BSE Sensex an Overview: The SENSEX, short form of the BSE-Sensitive Index, is a Market Capitalization-Weighted index of 30 stocks representing a sample of large, well-established and financially sound companies.There are many stock exchanges in India. The BSE Sensex is one of them. S&P BSE or SENSEX is a metric that reviews the performance of shares of companies listed on BSE. S&P stands for Standard and Poor's, an international credit rating agency. It basically works to create indexes. This agency has licensed the index to BSE. Hence S&P is connected with BSE. Let's talk about BSE now.
BSE Sensex an Overview
BSE SENSEX opening time
- Normal session
- Pre-opening session
- Post closing session
|9:00 AM-9:08 AM||Order entry session|
|Allows you to place orders to buy and sell stocks.|
|During the session, orders are allowed to be modified or canceled.|
|9:08 AM-9:12 AM||Calculation of opening price of normal session and matching of orders|
|Modifying or canceling orders is not allowed.|
|9:12 AM-9:15 AM||This is a buffer method.|
|Used for easy replacement of pre-opening session before normal session.|
Bse Sensex closing time
The objectives of the index are: * To measure market movements
SENSEX is widely used to describe the mood in the Indian Stock markets. * Benchmark for funds performance
The country’s first derivative product i.e. Index-Futures was launched on SENSEX.
Market Capitalization:The scrip should figure in the top 100 companies listed by market capitalization.
BSE Sensex Liquidity:
BSE Sensex Continuity:
The back calculation over the last one-year period is carried out and correlation of the revised index to the old index should not be less than 0.98. This ensures that the historical continuity of the index is maintained.
The index companies should be leaders in their industry group.
Listed History:The scrip should have a listing history of at least one year on BSE.
Beta of SENSEX scrips:-
- A Beta of one means that for every change of 1%% in index, the scrip moves by 1%%.
- Statistically Beta is defined as: Covariance (SENSEX, Stock )/ Variance(SENSEX)
It keeps the Index comparable over time and is the adjustment point for all Index maintenance adjustments.
How is the closing Index calculated:-
- The closing SENSEX is computed taking the weighted average of all the trades on SENSEX constituents in the last 15 minutes of trading session.
- If a SENSEX constituent has not traded in the last 15 minutes, the last traded price is taken for computation of the Index closure.
- If a SENSEX constituent has not traded at all in a day, then its last day’s closing price is taken for computation of Index closure.
- The use of Index Closure Algorithm prevents any intentional manipulation of the closing index value.