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

POSTED BY:- Poonam S. Juthani
DT:-06/01/2026
9867490397

Mumbai, January 2, 2026: 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
Period FY1986-2025 – 39 years
India’s growth story with consistency and trustworthiness. As India moves towards Viksit
Bharat, we at BSE remain committed to meet the dynamic market requirements and reflect
the changing economic landscape.”
This 40-year milestone reaffirms BSE’s commitment to market development, investor
protection, and building resilient capital markets aligned with India’s long-term growth
vision.

About BSE:
Founded in 1875, BSE is Asia’s oldest exchange and the world’s largest exchange in terms of the
number of listed companies. BSE has been playing a prominent role in developing the Indian capital
market and has successfully offered an efficient capital raising platform to many companies in India.
The benchmark index of BSE, Sensex, is tracked by investors across the globe is also considered as a
barometer for the growth of Indian Economy. BSE provides an efficient and transparent market for
trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives,
mutual funds, stock lending and borrowing.