BSE SENSEX 50 Index

The BSE Sensex 50 tracks the performance of the top 50 large and liquid companies listed on the Bombay Stock Exchange. It was launched on December 6th, 2016.

This index offers wider market representation compared to the 30-stock Sensex, and covers liquid stocks from the BSE LargeMidCap index.

The stocks within the BSE Sensex 50 are selected based on the following process.

1. Step 1: Starting Universe (BSE 100)

   
   Stocks are selected from the BSE 100 to ensure a large-cap and liquid base.

2. Step 2: Listing History

   
   Only stocks with at least 6 months of listing history on BSE are eligible.

3. Step 3: Trading Frequency Filter

   
   Stocks must have traded on all trading days during the review period.

4. Step 4: Derivatives Availability

   
   Constituents are required to be available for derivative trading (F&O segment).

5. Step 5: Market Cap Ranking

   
   Eligible stocks are ranked by their 6-month average float-adjusted market capitalisation.

6. Step 6: Final Selection (Top 50)

   
   The top 50 stocks by ranking are selected for inclusion in the index.

The BSE Sensex 50 index is calculated using the free-float market capitalisation weightage method.

1. Step 1: Free-Float Market Cap

   
   Only publicly tradable shares are considered. Promoter holdings are excluded.

2. Step 2: Index Formula

   
   Index Value = (Total Free-Float Market Cap of all constituents / Base Market Cap) x Base Value

3. Step 3: Capping

   
   Individual stock weights are capped at 15% to prevent excessive concentration in a single stock.

4. Step 4: Real-Time Calculation

   
   The BSE Sensex 50 index is calculated continuously during market hours.

5. Step 5: Rebalancing

   
   Semi-annual review is conducted in June and December to update constituents and weights.

Tracking the BSE Sensex 50 live performance provides a more analytical view of large-cap market performance, with slightly broader coverage than the traditional Sensex.

1. Broader Large-Cap Exposure

   : Covers 50 stocks compared to the 30-stock Sensex, offering wider representation.

2. Liquidity Focused

   : All constituents are available in the derivatives segment, indicating high liquidity.

3. Float-Adjusted Weighting

   : Uses only tradable shares for weighting, reflecting actual market participation.

4. Capped Structure

   : Individual stock cap of 15% limits single-stock concentration.

5. Easy to Track

   : With the BSE Sensex 50 today and live updates available, it becomes easier to monitor market movements.

With Anand Rathi's TradeMobi platform, investing in the BSE Sensex 50 index is possible in 5-simple steps.

1. Step 1: Open / Login to Your Account

   
   Start by logging into your account or opening a demat account and trading account.

2. Step 2: Explore Investment Options

   
   Look for index funds or ETFs tracking the BSE Sensex 50.

3. Step 3: Choose Your Investment

   
   Pick a suitable investment option based on your understanding and risk levels.

4. Step 4: Invest and Monitor

   
   Once invested, track the BSE Sensex 50 live performance regularly on the app.

5. Step 5: Stay Updated

   
   Use research insights to understand trends in the BSE Sensex 50 share price and the overall market.

The BSE Sensex 50 was introduced on December 6th, 2016, to provide a broader benchmark consisting of 50 stocks beyond the 30-stock Sensex, capturing a wider set of large-cap companies listed on the BSE.

Earlier, in 1986, the Sensex was introduced to track the 30 stocks on the exchange. But, as the Indian equity market expanded, relying on a smaller basket alone was not always sufficient to represent the full large-cap space. Therefore, the BSE Sensex 50 existed to offer greater diversification while still focusing on certain established companies.