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Why Are These 4 BSE Index Referred the Most in Stock Market?

To understand the overall market movement, stock market indexes, also known as indices such as Sensex, BSE MidCap, BSE SmallCap, and BSE Bankex are very crucial. If you are wondering why these indexes play such a crucial role in online trading, this is the right place for you. Explore the four most referred BSE indexes in the stock market to upgrade your stock market knowledge and strategies in this blog. 

1. Sensex

Total Market Cap: ₹ 13,950,585.65 Cr. 

Established in 1986, Sensex is one of the most popular representations of the market health and conditions. This index is revised every June and December and is composed of the 30 largest companies from different sectors. 

Some of the large-cap companies included in Sensex include:
1. Axis Bank
2. Bharti Airtel
3. Hindustan Unilever
4. ICICI Bank
5. Infosys
6. ITC
7. Nestle India
8. Reliance Industries
9. Tata Steel
10. Wipro 

This index is calculated using a free-float capitalization approach. 

The free-float market capitalization = market capitalization x free float factor. Here, the market capitalization or the market cap denotes a company’s total value (total number of market shares x current market price of the stock), while the free float factor is the ratio between the number of floating and outstanding shares. All four indexes mentioned in this blog are calculated using the same approach. 

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2. BSE MidCap

Total Market Cap: ₹ 6,177,916.10 Cr. 

BSE MidCap is a BSE index that accounts for approximately 15% of the total market cap of all BSE indexes. BSE MidCap includes a total of 124 companies that have a total market cap between Rs. 5,000 and Rs. 20,000 crore. 

This index offers investors not only a chance to diversify their portfolio but also an opportunity to invest in companies with high growth potential. Some of the most prominent companies in this index include: 

1. Abbott India
2. Aurobindo Pharma
3. Biocon
4. Colgate
5. Exide Industries
6. GlaxoSmithKline Pharmaceuticals
7. JSW Energy
8. Mindtree
9. Procter & Gamble Hygiene and Health Care
10. Voltas

3. BSE SmallCap

Total Market Cap: ₹ 6,703,299.95 Cr. 

BSE SmallCap like BSE MidCap is another indicator that accounts for 15% of the total market cap of all the BSE indexes. BSE SmallCap includes a total of 948 small-cap companies which have a market cap under Rs. 5000 crore rupees, such as: 

1. Aether Industries
2. Anant Raj
3. BASF India
4. Coforge
5. Delta Corp
6. Eureka Forbes
7. PVR Inox
8. Suzlon Energy
9. Tata Chemicals
10. Welspun Living

Being small in size, these companies have a large scope for expansion and growth in their operations and other business activities. However, this index also represents some of the most volatile shares, which have high risk and reward factors. 

4. BSE Bankex

Total Market Cap: ₹ 3,490,145.03 Cr. 

For assessing the banking sector’s performance, BSE Bankex is the go-to index. Launched in June 2003, BSE Bankex is linked to the economy’s financial well-being and is made up of 10 banking stocks that are listed below.

1. AU Small Finance Bank
2. Axis Bank
3. Bank of Baroda
4. Federal Bank Ltd
5. HDFC Bank
6. ICICI Bank Ltd
7. IDFC IndusInd Bank Ltd
8. First Bank Ltd
9. Kotak Mahindra Bank Ltd
10. State Bank of India

Note: All the data mentioned in this blog are sourced as of January 17, 2024.


All four indexes mentioned in this article are a compilation of data that can help you understand the stock market better and make informed decisions. However, remember to go beyond these indexes and do your own research while investing or trading in the stock markets. 

To start your investment or online trading journey, visit Dhan, India’s one of the leading online trading platforms.

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