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Sensex 30
Sensex 30
HERE…
(Updated: 09-Nov-2019)
– – – – 100.00%
In the stock page you will find two market capitalisation mentioned for
each stock.
The first will be Full Market Capitalisation, and send will be Free Float
Market Cap.
The stocks held by promoters are not used in the calculation of free float
market capitalisation.
Like “Public Locked-in Shares” are not considered to calculate free float
market cap.
Stocks which were not included in free float method are as below:
Then note down Free Float Market Cap against each of the 30 stocks.
You will get the values from bseindia.com (stock page).
The higher is the market cap (free float) of a company, higher will be its
weightage in Sensex.
How?
It means from year 1979 till 2019, Sensex has appreciated from 100 to
38,000 points (at rate of 16% p.a. in 40 years).
All companies which are listed in Bombay Stock Exchange (BSE) can be
included in Sensex.
How it is done?
A Group,
B Group,
T Group &
Z Group.
#1. PRECONDITIONS
Z-Group companies are excluded: These are companies which has not
complied with BSE regulations.
IPO’s: cannot be included in Sensex. To be eligible for Sensex, companies must
be listed in BSE for minimum 3 months.
Daily Trading: In its past 3 month cycle, the company’s stock must have
been traded on every day.
4Q Reporting: The company must have reported its sales turnover (total
income) of last 4 quarters.
#2. SCREENING
1. Screening 1 (Free Float): The shortlisted companies are listed in order of their
“average three month float market capitalization”. Only top 75 ranked
companies are considered for further screening.
2. Screening 2 (Full Market Cap): All 5,000+ companies are ranked based on
their full market capitalization (3 months average). Again, top 75 ranked
companies are selected.
3. The companies shortlisted in 1 & 2 above (75+75) are combined to form one
list.
4. Screening 3 (Trading Volume): The list of combined companies are then
ranked once again based on their average traded volume (of last 3 months).
Companies whose cumulated value traded is <98% are excluded from the list.
5. Screening 4 (Weigh): Balance companies are again ranked based on float-
market capitalization. Companies which had calculated weight of less than 0.5%
are again excluded.
The balance what remains (Top 30) – gives the final list of the Sensex
30 companies.
Our target should be “to locate any stock which is fundamentally strong and is
also undervalued”.
For some, the task of stock analysis might look like too much effort.
Because it will help in getting one answer – which are the fundamentally
super strong stocks of Indian market…
Stocks with high weightage in Sensex are necessarily one’s with strong
business fundamentals.
In fact all stocks which gets included in the index are strong.
INTERPRETATION
Another interpretation is possible when we know weightage of
companies in Sensex.
These stocks can be considered as best blue chip stocks available in the
country.
Index funds which tracks BSE SENSEX are available in the market.
These funds invest only in those stocks which are listed as Sensex
scripts.