Sensex Stocks
Introduction to Sensex Stocks
The BSE Sensex consists of the 30 largest companies by market capitalization listed on the Bombay Stock Exchange (BSE). These are some of the top companies in India which boast robust fundamentals. These companies represent India's economic backbone with stocks from a variety of sectors.
Key Features of Sensex Stocks
Market Capitalization
Sensex stocks are selected based on the total value of a company's outstanding shares, known as market capitalization.
Sector Diversification
Sensex stocks are diversified across various sectors of the economy.
Historical Performance
Sensex stocks are chosen based on past financial performance, profitability, and growth potential.
Liquidity
Sensex stocks are highly liquid, meaning they are actively traded, providing ease of buying and selling for investors.
Details of top Sensex Stocks
Some of the top stocks in Sensex are Reliance, TCS and HDFC Bank among others. Sensex is a list of 30 stocks that has the top stocks listed in the BSE based on their market capitalization.
Reliance
Reliance Industries is the largest company listed in India based on market capitalization. The company’s market capitalization as on April 2023 amounted to Rs 15 lakh crore.
TCS
Tata Consultancy Services is India’s largest information technology company by revenue and by market capitalization. The company’s market cap amounts to Rs 11.5 lakh crore, surpassing its peers Infosys and HCL.
HDFC Bank
HDFC Bank is India’s largest private sector bank and the top valued lender listed in the Sensex. The bank’s market capitalization as on August 2023 amounted to Rs 9 lakh crore.
How to analyze Sensex stocks
Sensex in itself is a stock index that is the amalgamation of the top 30 stocks by market capitalization in India. These stocks are well known for their strong balance sheets, talented management and robust ethical business practices. An investor can further analyze sensex companies as follows:
Earnings
Keep a tab on what is the trend for revenue and net profit growth for the shares listed in the sensex. The trend can be analyzed on a quarter on quarter basis or on a yearly basis to get a clear picture of the business growth of the company.
Technicals
Use indicators such as price to equity ratio to figure out if any particular share is overvalued or undervalued. It helps you to decide if the share price of any stock is justified in comparison to its earnings performance. Other indicators such as PB ratio, Acid Test Ratio, Return on Equity can be used.
Industry changes
The sensex has stocks listed who are at the pinnacle of their respective sectors. For instance TCS for IT sector and HDFC Bank for banking sector and so forth. So, any radical changes to any industry will have a direct impact on such shares.
Who Should Invest in Sensex Stocks?
Sensex being a benchmark index is considered to be among the safe bets in the stock market world. Investors who have a long-term investing horizon and who do not want to take on too much risk in their portfolios can invest in sensex stocks.