SENSEX - The Thermometer of Indian Capital Markets

SENSEX, first compiled in 1986, was calculated on a "Market Capitalization-Weighted" methodology of 30 component stocks on behalf of large, well-established and money-wise sound companies across key sectors. The base year of SENSEX was taken as 1978-1979. SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. It is scientifically designed and is based on internationally accepted construction and evaluation methodology. Since September 1, 2003, SENSEX is being calculated on a free-float market capitalization methodology. The "free-float market capitalization-weighted" methodology is a widely followed index assembly methodology on which greater part of global equity indices are based; all major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology.The expansion of the equity market in India has been extraordinary in the present decade. Right from early 90s, the stock market witnessed heightened activity in terms of various bull and bear runs. In the late 90s, the Indian market witnessed a enormous fury in the 'TMT' sectors. More recently, real estate fixed the fancy of the investors. SENSEX has captured all these happenings in the most judicious manner. One can recognize the booms and busts of the Indian equity market through SENSEX. As the oldest index in the country, it provides the time series data over a fairly long period of time (from 1979 onwards). now, the SENSEX has become one of the most prominent brands in the country.

Crude oil new high makes market downtrend

Indian Stock Markets have slipped sharply in the opening trades on back of heavy overnight losses in the US markets and a weak start to the equity markets across Asia. Further the sentiments have also dampened as US light crude oil for July delivery set a closing record of $133.17 in New York Mercantile Exchange trading, up more than US$4 per barrel and then proceeded to march to another record intraday high of $134.10 in electronic trading after the settlement.
Among the 30-scripts of Sensex, 27 stocks are in red and only 3 stocks are in green. Reliance Industries, ICICI Bank, L&T and HDFC Bank are among the major laggards. At 10:00 am (IST), the BSE 30-share Sensex slipped 193 points at 17,049 and NSE Nifty was down 49 points at 5,068.
Asian stocks fell for a third day today, extending a global slump, after oil rose to a record and the Federal Reserve signaled it is done cutting interest rates.
The MSCI Asia Pacific Index fell 1% to 150.49 as of 11:34 a.m. in Tokyo, with almost four stocks dropping for each that climbed. All 10 industry groups declined. All of Asia's benchmark indexes retreated, with Japan's Nikkei 225 Stock Average declining 1.2% to 13,762.27.
US stocks sank on Wednesday as crude oil surged further on a surprising weakness in government's weekly fuel supply report. Sentiment also got hit after the minutes from the Federal Reserve's last meeting showed policy makers were reluctant to cut rates.
The S&P 500 slumped 22.69 points, or 1.6%, to 1,390.71. The Dow Jones Industrial Average slid 227.49 points, or 1.8%, to 12,601.19. The Nasdaq Composite Index dived 43.99 points, or 1.8%, to 2,448.27.
Stocks in Europe fell on record crude prices, resulting in sharp losses for automakers and airlines. The pan-European Dow Jones Stoxx 600 index fell 0.9% to 323.16 as crude-oil prices run up as high as $132.08 a barrel. The UK's FTSE 100 edged up 0.1% to 6,198.10, while the German DAX 30 fell 1.1% to 7,040.83 and the French CAC-40 dropped 0.5% to 5,027.55.

In the emerging markets, the Bovespa in Brazil slid 1.7% to 72,294 while the IPC index in Mexico was down 1.3% at 31,126. The RTS index in Russia gained 0.6% to 2467 while the ISE National 30 index in Turkey fell 0.75% to 50,360.