BSE Celebrates 40 Years of SENSEX, Reflecting India’s Market Evolution

POSTED BY : MRUNALI SAKPAL DT. 03/01/2026 📞  8850212023

MUMBAI RMN.IN(E) : BSE Limited (BSE), Asia’s oldest stock exchange, today marked a historic milestone with the celebration of #40YearsOfSensex, commemorating four decades of India’s most widely tracked equity benchmark and a symbol of the country’s capital market evolution for the common man.

Launched in 1986, the SENSEX, India’s first stock market index, is designed to reflect the broader Indian equity market, with 30 constituents comprising of India’s leading and liquid companies across diverse sectors such as financial services, technology, energy, FMCG, commodities, healthcare, industrials, among others. Representing nearly 40% of the nation’s market capitalization, it serves as a benchmark for India’s economic strength and equity market performance. The index is reviewed biannually (in June and December).

The SENSEX, when launched in 1986, was calculated using a market-cap-weighted methodology of 30 component stocks representing large, well-established, and financially sound companies across key sectors. Since September 1, 2003, the SENSEX has been calculated on a free-float (float-adjusted) market-cap methodology. The free-float, market-cap-weighted methodology is a widely followed index construction upon which, majority of global equity indices are based. The SENSEX is among India’s most tracked benchmarks, with over 20 Exchange Traded Funds (ETFs) and index funds managing assets worth Rs 2.5 lakh crore. It also features one of the world’s most active index options contracts and ranks as the fastest-growing index derivatives contract for the last two years.

Since inception, the Sensex has delivered a compounded annualised growth rate (CAGR) of 13.4%^1, closely mirroring India’s nominal gross domestic product (GDP) growth of nearly 13% during the period. This growth has come across many crises and market reforms, reflecting the resilience, depth and dynamism of Indian enterprises and capital market. The index has evolved into a trusted barometer of India’s economic progress, wealth creation and market confidence.

The milestone was celebrated in the presence of Shri Tuhin Kanta Pandey, Chairman, Securities and Exchange Board of India (SEBI), and Shri Sundararaman Ramamurthy, Managing Director & Chief Executive Officer (MD & CEO), BSE Ltd., along with distinguished market participants, policymakers, and stakeholders.

Speaking on the occasion, Shri Tuhin Kanta Pandey, Chairman, SEBI, said, “Over the last four decades, the Sensex has stood the test of time as a robust market indicator, mirroring India’s economic transformation and the growing maturity of our capital markets.”

Highlighting the significance of the milestone, Shri Sundararaman Ramamurthy, Managing Director & CEO, BSE, said, “#40YearsOfSensex is not just a celebration of an index, but a celebration of India’s capital market journey. From a closed market to one of the most technology-driven and investor-centric ecosystems globally, the SENSEX has chronicled